<SEC-DOCUMENT>0000950123-11-100255.txt : 20111123
<SEC-HEADER>0000950123-11-100255.hdr.sgml : 20111123
<ACCEPTANCE-DATETIME>20111123144118
ACCESSION NUMBER:		0000950123-11-100255
CONFORMED SUBMISSION TYPE:	497
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20111123
DATE AS OF CHANGE:		20111123
EFFECTIVENESS DATE:		20111123

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BlackRock Utility & Infrastructure Trust
		CENTRAL INDEX KEY:			0001528988
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		497
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-176661
		FILM NUMBER:		111225033

	BUSINESS ADDRESS:	
		STREET 1:		55 EAST 52ND STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10055
		BUSINESS PHONE:		(800) 882-0052

	MAIL ADDRESS:	
		STREET 1:		55 EAST 52ND STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10055
</SEC-HEADER>
<DOCUMENT>
<TYPE>497
<SEQUENCE>1
<FILENAME>y93113ee497.htm
<DESCRIPTION>497
<TEXT>
<HTML>
<HEAD>
<TITLE>e497</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 12pt">PROSPECTUS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="y93113ey9311300.gif" alt="(BLACKROCK LOGO)"><FONT style="font-size: 12pt">
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 18pt">15,500,000&#160;Shares</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 22pt">BlackRock Utility and
    Infrastructure Trust</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">Common Shares</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">$20.00 per share</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investment Objective. </I>BlackRock Utility and
    Infrastructure Trust (the &#147;Trust&#148;) is a newly
    organized, non-diversified, closed-end management investment
    company. The Trust&#146;s investment objective is to provide
    total return through a combination of current income, current
    gains and long-term capital appreciation. No assurance can be
    given that the Trust will achieve its investment objective, and
    investors could lose some or all of their investment.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investment Strategy.</I> The Trust seeks to achieve its
    investment objective by investing primarily in equity securities
    issued by companies that are engaged in the Utilities and
    Infrastructure business segments (as defined below) anywhere in
    the world and by utilizing an option strategy in an effort to
    enhance current gains.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under normal market conditions, the Trust will invest at least
    80% of its total assets in equity securities issued by companies
    that are engaged in the Utilities or Infrastructure business
    segments. The Trust considers the &#147;Utilities&#148; business
    segment to include products, technologies and services connected
    to the management, ownership, operation, construction,
    development or financing of facilities used to generate,
    transmit or distribute electricity, water, natural resources or
    telecommunications and the &#147;Infrastructure&#148; business
    segment to include companies that own or operate infrastructure
    assets (as described herein) or that are involved in the
    development, construction, distribution or financing of
    infrastructure assets.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in companies of any market capitalization
    located anywhere in the world. Although the Trust expects to
    invest primarily in companies located in developed countries, it
    may invest in companies located in emerging markets. Equity
    securities in which the Trust may invest include common stocks,
    preferred stocks, convertible securities, warrants, depository
    receipts, exchange-traded funds, equity interests in real estate
    investment trusts, Canadian Royalty Trusts and master limited
    partnerships (&#147;MLPs&#148;). The Trust will not invest more
    than 25% of the value of its total assets in MLPs. The Trust may
    invest up to 20% of its total assets in equity securities issued
    by companies that are not engaged in the Utilities or
    Infrastructure business segments and debt securities issued by
    any issuer, including up to 10% of its total assets in
    non-investment grade debt securities, which are commonly known
    as &#147;junk bonds.&#148;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As part of its investment strategy, the Trust currently intends
    to employ a strategy of writing (selling) covered call options
    on a portion of the common stocks in its portfolio, writing
    (selling) covered put options on a portion of the common stocks
    in its portfolio and, to a lesser extent, writing (selling)
    covered call and put options on indices of securities and
    sectors of securities. This option strategy is intended to
    generate current gains from option premiums as a means to
    enhance distributions payable to the Trust&#146;s shareholders.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>No Prior History.</I> The Trust&#146;s common shares have
    no history of public trading. Shares of closed-end investment
    companies frequently trade at a discount from their net asset
    value, which could be significant. This risk may be greater for
    investors expecting to sell their shares in a relatively short
    period after completion of the public offering.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s common shares have been approved for listing on
    the New York Stock Exchange, subject to notice of issuance,
    under the symbol &#147;BUI.&#148;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in the Trust&#146;s common shares involves certain
    risks that are described in the &#147;Risks&#148; section
    beginning on page&#160;28 of this prospectus. Certain of these
    risks are summarized in &#147;Prospectus Summary&#160;&#151;
    Special Risk Considerations&#148; beginning on page&#160;6.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    Per Share
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    Total(1)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $20.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $310,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sales load(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $13,950,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Estimated offering expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $620,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds, after expenses, to the Trust(3)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $19.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $295,430,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="font-size: 9pt">(notes on inside front
    cover)&#160;&#160;</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>The underwriters expect to deliver the common shares to
    purchasers on or about November&#160;28, 2011.</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 14pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="17%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="25%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="25%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD colspan="11" valign="bottom">
<DIV style="text-indent: -14pt; margin-left: 14pt">
    <B>Morgan Stanley</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="9" valign="bottom">
    <B>Citigroup</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" valign="bottom">
    <B>BofA Merrill Lynch</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" valign="bottom">
    <B>UBS Investment Bank</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" valign="bottom">
    <B>&#160;&#160;Wells&#160;Fargo&#160;Securities</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="right" valign="bottom">
    <B><FONT style="font-size: 13pt">Ameriprise Financial Services,
    Inc.</FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 11pt; font-family: 'Times New Roman', Times">RBC
    Capital Markets</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 11pt; font-family: 'Times New Roman', Times">
    Comerica Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">BB&#038;T
    Capital Markets</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Chardan Capital Markets, LLC</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    J.J.B. Hilliard, W.L. Lyons, LLC</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Janney Montgomery Scott</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">Knight</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Ladenburg Thalmann&#160;&#038; Co. Inc.</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Maxim Group LLC</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Wedbush Securities Inc.</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Wunderlich Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 9pt">The date of this prospectus is
    November&#160;22, 2011.
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">(notes
    from previous page)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 9%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Trust has granted the
    underwriters an option to purchase up to 2,325,000 additional
    common shares at the public offering price, less the sales load,
    within 45&#160;days of the date of this prospectus solely to
    cover overallotments, if any. If such option is exercised in
    full, the public offering price, sales load, estimated offering
    expenses and proceeds, after expenses, to the Trust will be
    $356,500,000, $16,042,500, $713,000 and $339,744,500,
    respectively. See &#147;Underwriters.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">BlackRock Advisors (and not the
    Trust) has agreed to pay, from its own assets, a structuring and
    syndication fee to Morgan Stanley &#038; Co. LLC and structuring
    fees to Citigroup Global Markets Inc., Merrill Lynch, Pierce,
    Fenner&#160;&#038; Smith Incorporated, UBS Securities LLC, Wells
    Fargo Securities, LLC and Ameriprise Financial Services, Inc.
    Because these fees are paid by BlackRock Advisors, they are not
    reflected under sales load in the table above. BlackRock
    Advisors and certain of its affiliates (and not the Trust) also
    may pay commissions to employees of its affiliates that
    participate in the marketing of the Trust&#146;s common shares.
    See &#147;Underwriters&#160;&#151; Additional Compensation to be
    Paid by the Advisor.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">BlackRock Advisors has agreed to
    pay such organizational and offering expenses of the Trust
    (other than the sales load) to the extent that organizational
    and offering expenses (other than the sales load) exceed $0.04
    per common share. The Trust will pay organizational and offering
    expenses of the Trust (other than the sales load) up to $0.04
    per common share, which may include a reimbursement of BlackRock
    Advisors&#146; expenses incurred in connection with this
    offering. Any offering cost paid by the Trust will be deducted
    from the proceeds of the offering received by the Trust. The
    aggregate organizational and offering expenses (other than the
    sales load) are estimated to be $1,850,975 or $0.12 per common
    share. The aggregate offering expenses (other than the sales
    load) to be incurred by the Trust are estimated to be $620,000
    or $0.04 per common share. The aggregate organizational and
    offering expenses (other than the sales load) to be incurred by
    BlackRock Advisors on behalf of the Trust are estimated to be
    $1,230,975 or $0.08 per common share.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Trust will pay its
    organizational costs in full out of its seed capital prior to
    completion of this offering.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">(continued
    from previous page)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investment Advisor and
    <FONT style="white-space: nowrap">Sub-Advisors.</FONT></I>The
    Trust&#146;s investment advisor is BlackRock Advisors, LLC
    (&#147;BlackRock Advisors&#148; or the &#147;Advisor&#148;) and
    the Trust&#146;s
    <FONT style="white-space: nowrap">sub-advisors</FONT>
    are BlackRock Financial Management, Inc. and BlackRock
    Investment Management, LLC (collectively, the
    <FONT style="white-space: nowrap">&#147;Sub-Advisors&#148;).</FONT>
    We sometimes refer to the Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    collectively as the &#147;Advisors.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should read this prospectus, which sets forth information
    about the Trust, before deciding whether to invest in the common
    shares, and retain it for future reference. A Statement of
    Additional Information, dated November&#160;22, 2011 (the
    &#147;SAI&#148;), containing additional information about the
    Trust, has been filed with the Securities and Exchange
    Commission and, as amended from time to time, is incorporated by
    reference in its entirety into this prospectus. You can review
    the table of contents for the SAI on page&#160;61 of this
    prospectus. You may request a free copy of the SAI by calling
    <FONT style="white-space: nowrap">(800)&#160;882-0052</FONT>
    or by writing to the Trust, or obtain a copy (and other
    information regarding the Trust) from the Securities and
    Exchange Commission&#146;s Public Reference Room in
    Washington,&#160;D.C. Call
    <FONT style="white-space: nowrap">(202)&#160;551-8090</FONT>
    for information. The Securities and Exchange Commission charges
    a fee for copies. You can get the same information free from the
    Securities and Exchange Commission&#146;s website
    <FONT style="white-space: nowrap">(http://www.sec.gov).</FONT>
    You may also
    <FONT style="white-space: nowrap">e-mail</FONT>
    requests for these documents to publicinfo@sec.gov or make a
    request in writing to the Securities and Exchange
    Commission&#146;s Public Reference Section,
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C.
    <FONT style="white-space: nowrap">20549-0102.</FONT>
    The Trust does not post a copy of the SAI on its website because
    the Trust&#146;s common shares are not continuously offered,
    which means the SAI will not be updated after completion of this
    offering and the information contained in the SAI will become
    outdated. In addition, you may request copies of the
    Trust&#146;s semi-annual and annual reports or other information
    about the Trust or make shareholder inquiries by calling
    <FONT style="white-space: nowrap">(800)&#160;882-0052.</FONT>
    The Trust&#146;s annual and semi-annual reports, when produced,
    will be available at the Trust&#146;s website
    <FONT style="white-space: nowrap">(http://www.blackrock.com)</FONT>
    free of charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should not construe the contents of this prospectus as
    legal, tax or financial advice. You should consult with your own
    professional advisors as to the legal, tax, financial or other
    matters relevant to the suitability of an investment in the
    Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The Trust&#146;s common shares do not represent a deposit or
    obligation of, and are not guaranteed or endorsed by, any bank
    or other insured depository institution, and are not federally
    insured by the Federal Deposit Insurance Corporation, the
    Federal Reserve Board or any other government agency.</B>
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y93113tocpage"></A>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y93113tocpage"></A>
</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113101'>Prospectus Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113102'>Summary of Trust&#160;Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113103'>The Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113104'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113105'>The Trust&#146;s Investments</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113106'>Risks</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113107'>How the Trust&#160;Manages Risk</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113108'>Management of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113109'>Net Asset Value</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113110'>Distributions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113111'>Dividend Reinvestment Plan</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113112'>Description of Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113113'>Certain Provisions in the Agreement and
    Declaration of Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113114'>Closed-End Fund&#160;Structure</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113115'>Repurchase of Common Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113116'>Tax Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113117'>Underwriters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113118'>Custodian and Transfer Agent</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113119'>Legal Opinions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113120'>Privacy Principles of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113121'>Table of Contents for the Statement of Additional
    Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>You should rely only on the information contained or
    incorporated by reference in this prospectus. The Trust has not,
    and the underwriters have not, authorized any other person to
    provide you with different information. If anyone provides you
    with different or inconsistent information, you should not rely
    on it. We are not, and the underwriters are not, making an offer
    to sell these securities in any jurisdiction where the offer or
    sale is not permitted. You should assume that the information in
    this prospectus is accurate only as of the date of this
    prospectus. Our business, financial condition and prospects may
    have changed since that date.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='Y93113101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This is only a summary of the information that is described more
    fully elsewhere in this prospectus. This summary may not contain
    all of the information that you should consider before investing
    in our common shares. You should review the more detailed
    information contained in this prospectus and in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>The Trust</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    BlackRock Utility and Infrastructure Trust is a newly organized,
    non-diversified, closed-end management investment company with
    no operating history. Throughout the prospectus, we refer to
    BlackRock Utility and Infrastructure Trust simply as the
    &#147;Trust&#148; or as &#147;we,&#148; &#147;us&#148; or
    &#147;our.&#148; See &#147;The Trust.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>The Offering</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust is offering 15,500,000&#160;common shares of
    beneficial interest at $20.00 per share through a group of
    underwriters (the &#147;Underwriters&#148;) led by Morgan
    Stanley &#038; Co. LLC, Citigroup Global Markets Inc., Merrill
    Lynch, Pierce, Fenner &#038; Smith Incorporated, UBS Securities
    LLC and Wells Fargo Securities, LLC. The common shares of
    beneficial interest are called &#147;common shares&#148; in the
    rest of this prospectus. You must purchase at least 100 common
    shares ($2,000) in order to participate in this offering. The
    Trust has given the Underwriters an option to purchase up to
    2,325,000 additional common shares to cover overallotments.
    BlackRock Advisors, LLC (&#147;BlackRock Advisors&#148; or the
    &#147;Advisor&#148;), the Trust&#146;s investment advisor, has
    agreed to pay organizational expenses and offering costs (other
    than sales load) that exceed $0.04 per common share. See
    &#147;Underwriters.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Investment Objective</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust&#146;s investment objective is to provide total return
    through a combination of current income, current gains and
    long-term capital appreciation. No assurance can be given that
    the Trust will achieve its investment objective, and investors
    could lose some or all of their investment.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Investment Policies</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust seeks to achieve its investment objective by investing
    primarily in equity securities issued by companies that are
    engaged in the Utilities and Infrastructure business segments
    (as defined below) anywhere in the world and by utilizing an
    option strategy in an effort to enhance current gains.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Under normal market conditions, the Trust will invest at least
    80% of its total assets in equity securities issued by companies
    that are engaged in the Utilities or Infrastructure business
    segments. The Trust considers the &#147;Utilities&#148; business
    segment to include products, technologies and services connected
    to the management, ownership operation, construction,
    development or financing of facilities used to generate,
    transmit or distribute electricity, water, natural resources or
    telecommunications and the &#147;Infrastructure&#148; business
    segment to include companies that own or operate infrastructure
    assets or that are involved in the development, construction,
    distribution or financing of infrastructure assets (as described
    herein).</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    For purposes of the 80% policy above, a company is considered to
    be engaged in these business segments if: (i)&#160;at least 50%
    of its assets, income, sales or profits are committed to or
    derived from one or both of the Utilities or Infrastructure
    business segments; or (ii)&#160;a third party classification has
    given the company an industry or sector classification
    consistent with the Utilities or Infrastructure business
    segments.</TD>
</TR>

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    <BR>
    1
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust may invest in companies of any market capitalization
    located anywhere in the world. Although the Trust expects to
    invest primarily in companies located in developed countries, it
    may invest in companies located in emerging markets. Equity
    securities in which the Trust may invest include common stocks,
    preferred stocks, convertible securities, warrants, depository
    receipts, exchange-traded funds (&#147;ETFs&#148;), equity
    interests in real estate investment trusts, Canadian Royalty
    Trusts and master limited partnerships (&#147;MLPs&#148;). The
    Trust will not invest more than 25% of the value of its total
    assets in MLPs. The Trust may invest up to 20% of its total
    assets in equity securities issued by companies that are not
    engaged in the Utilities or Infrastructure business segments and
    debt securities issued by any issuer, including up to 10% of its
    total assets in non-investment grade debt securities, which are
    commonly known as &#147;junk bonds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Companies engaged in the Utilities or Infrastructure business
    segments can be generally categorized as engaging in, related to
    or involved with:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the generation, transmission, sale or distribution
    of electric energy;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the distribution, purification and treatment of
    water;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the production, transmission or distribution of
    natural resources used to produce energy, such as oil, natural
    gas and coal;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the provision of communications services, including
    cable television, satellite, microwave, radio, telephone and
    other communications media (e.g., fixed-base wireless
    transmission towers and broadband television cable);</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the management, ownership or operation of
    infrastructure assets; or</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;the construction, development, distribution or
    financing of infrastructure assets.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust generally considers &#147;infrastructure assets&#148;
    to consist of those assets which provide the underlying
    foundation of basic services, facilities and institutions upon
    which the growth and development of a community depends,
    including physical structures, networks and systems of
    transportation, energy, water and sewage, and communication.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Categories of infrastructure assets currently include:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;Assets that are natural or near-natural monopolies
    and are regulated in the level of revenue earned or charges
    imposed. Examples include certain power and gas transmission,
    generation and distribution assets and water and waste-water
    distribution and treatment facilities.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;Assets that depend on a form of user pay system for
    their main revenue source. Examples include toll roads, bridges,
    tunnels, airports, railways, seaports and parking lots.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;Assets that provide basic social services to the
    community. Examples include schools, hospitals and correction
    facilities.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;Assets that compete in a market for the sale of a
    product or service and are therefore exposed to market risks.
    Examples include certain solid waste disposal facilities and
    certain communication asset </DIV>
</TD>
</TR>
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    <BR>
    2
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    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    classes, including communications towers, satellites and
    transmission lines.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;Other types of infrastructure assets include assets
    related to the development and distribution of coal, steel and
    iron ore, gold and other precious metals, building materials,
    agricultural commodities and food and the gathering, treating,
    processing, fractionation, transportation and storage of
    hydrocarbon products.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Historically, Utilities and Infrastructure companies have
    generally paid dividends on their equity securities.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Option Writing Strategy</I>.&#160;&#160;As part of its
    investment strategy, the Trust currently intends to employ a
    strategy of writing (selling) covered (as described herein) call
    options on a portion of the common stocks in its portfolio,
    writing (selling) covered (as described herein) put options on a
    portion of the common stocks in its portfolio and, to a lesser
    extent, writing (selling) covered call and put options on
    indices of securities and sectors of securities. This option
    strategy is intended to generate current gains from option
    premiums as a means to enhance distributions payable to the
    Trust&#146;s shareholders.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    As the Trust writes covered calls over more of its portfolio,
    its ability to benefit from capital appreciation becomes more
    limited and the Trust will lose money to the extent that it
    writes call options that are not covered by securities in its
    portfolio and the securities or index on which it writes the
    option appreciates above the exercise price of the option by an
    amount that exceeds the exercise price of the option. A
    substantial portion of the options written by the Trust may be
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    options (&#147;OTC options&#148;).</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    A call option written by the Trust on a security is
    &#147;covered&#148; if the Trust owns the security underlying
    the call or has an absolute and immediate right to acquire that
    security without additional cash consideration (or, if
    additional cash consideration is required, cash or other assets
    determined to be liquid by the Advisors (in accordance with
    procedures established by the Board of Trustees of the Trust
    (the &#147;Board&#148;)) in such amount are segregated by the
    Trust&#146;s custodian) upon conversion or exchange of other
    securities held by the Trust. A call option is also covered if
    the Trust holds a call on the same security as the call written
    where the exercise price of the call held is (i)&#160;equal to
    or less than the exercise price of the call written, or
    (ii)&#160;greater than the exercise price of the call written,
    provided the difference is maintained by the Trust in segregated
    assets determined to be liquid by the Advisors as described
    above.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    A put option written by the Trust on a security is
    &#147;covered&#148; if the Trust segregates or earmarks assets
    determined to be liquid by the Advisors (in accordance with
    procedures established by the Board) equal to the exercise
    price. A put option is also &#147;covered&#148; if the Trust
    holds a put on the same security as the put written where the
    exercise price of the put held is (i)&#160;equal to or greater
    than the exercise price of the put written, or (ii)&#160;less
    than the exercise price of the put written, provided the
    difference is maintained by the Trust in segregated or earmarked
    assets determined to be liquid by the Advisors as described
    above.</TD>
</TR>

</TABLE>
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    <BR>
    3
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    An index or sector option is considered &#147;covered&#148; if
    the Trust maintains with its custodian assets determined to be
    liquid by the Advisors (in accordance with procedures
    established by the Board) in an amount equal to the contract
    value of the applicable basket of securities. An index or sector
    put option also is &#147;covered&#148; if the Trust holds a put
    on the same basket of securities as the put written where the
    exercise price of the put held is (i)&#160;equal to or more than
    the exercise price of the put written, or (ii)&#160;less than
    the exercise price of the put written, provided the difference
    is maintained by the Trust in segregated assets determined to be
    liquid by the Advisors as described above. An index or sector
    call option also is &#147;covered&#148; if the Trust holds a
    call on the same basket of securities as the call written where
    the exercise price of the call held is (i)&#160;equal to or less
    than the exercise price of the call written, or
    (ii)&#160;greater than the exercise price of the call written,
    provided the difference is maintained by the Trust in segregated
    assets determined to be liquid. Because index and sector options
    both refer to options on baskets of securities and generally
    have similar characteristics, we refer to these types of options
    collectively as &#147;index&#148; options.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust generally intends to write covered put and call
    options, the notional amount of which will be approximately 30%
    to 40% of the Trust&#146;s total assets, although this
    percentage may vary from time to time with market conditions.
    Under current market conditions, the Trust anticipates initially
    writing covered put and call options, the notional amount of
    which will be approximately 33% of the Trust&#146;s total
    assets. As the Trust writes covered calls over more of its
    portfolio, its ability to benefit from capital appreciation
    becomes more limited. The number of covered put and call options
    on securities the Trust can write is limited by the total assets
    the Trust holds, and further limited by the fact that all
    options represent 100&#160;share lots of the underlying common
    stock.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In connection with its option writing strategy, the Trust will
    not write &#147;naked&#148; or uncovered put and call options,
    other than those that are &#147;covered&#148; by the segregation
    of liquid assets as described above. Furthermore, the
    Trust&#146;s exchange-listed option transactions will be subject
    to limitations established by each of the exchanges, boards of
    trade or other trading facilities on which such options are
    traded. These limitations govern the maximum number of options
    in each class that may be written or purchased by a single
    investor or group of investors acting in concert, regardless of
    whether the options are written or purchased on the same or
    different exchanges, boards of trade or other trading facilities
    or are held or written in one or more accounts or through one or
    more brokers. Thus, the number of options which the Trust may
    write or purchase may be affected by options written or
    purchased by other investment advisory clients of the Advisor.
    An exchange, board of trade or other trading facility may order
    the liquidation of positions found to be in excess of these
    limits, and it may impose certain other sanctions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Other Strategies</I>.&#160;&#160;In addition to the option
    strategies discussed above, the Trust may engage in strategic
    transactions for hedging purposes or to enhance total return.
    See &#147;The Trust&#146;s Investments&#160;&#151; </TD>
</TR>
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    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Portfolio Composition and Other Information&#160;&#151;
    Strategic Transactions.&#148; The Trust may also engage in short
    sales of securities. See &#147;Investment Restrictions&#148; in
    the SAI and &#147;Other Investment Policies and
    Techniques&#160;&#151; Short Sales&#148; in the SAI for
    information about the limitations applicable to the Trust&#146;s
    short sale activities.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust may lend securities with a value of up to
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of its total assets (including such loans) to financial
    institutions that provide cash or securities issued or
    guaranteed by the U.S. government as collateral.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Under current market conditions, the Trust does not currently
    intend to engage in short sales, utilize leverage or issue
    preferred shares.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    No assurance can be given that the Trust will achieve its
    investment objective, and investors could lose some or all of
    their investment. See &#147;The Trust&#146;s Investments.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    For a discussion of risk factors that may affect the
    Trust&#146;s ability to achieve its investment objective, see
    &#147;Risks.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Investment Advisor and
    <FONT style="white-space: nowrap">Sub-Advisors</FONT></B> </TD>
    <TD></TD>
    <TD valign="bottom">
    BlackRock Advisors acts as the Trust&#146;s investment advisor
    and BlackRock Advisors&#146; affiliates, BlackRock Financial
    Management, Inc. and BlackRock Investment Management, LLC
    (collectively, the
    <FONT style="white-space: nowrap">&#147;Sub-Advisors&#148;),</FONT>
    act as the Trust&#146;s
    <FONT style="white-space: nowrap">sub-advisors.</FONT>
    Throughout the prospectus, we sometimes refer to BlackRock
    Advisors and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    collectively as the &#147;Advisors.&#148; BlackRock Advisors
    will receive an annual fee, payable monthly, in a maximum amount
    equal to 1.00% of the average daily value of the net assets of
    the Trust. BlackRock Advisors will pay an annual
    <FONT style="white-space: nowrap">sub-advisory</FONT>
    fee to each
    <FONT style="white-space: nowrap">Sub-Advisor</FONT>
    equal to 51% of the management fee received by BlackRock
    Advisors with respect to the average daily value of the net
    assets of the Trust allocated to such Sub-Advisor. See
    &#147;Management of the Trust&#160;&#151; Investment Advisor and
    <FONT style="white-space: nowrap">Sub-Advisors.&#148;</FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Distributions</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Commencing with the Trust&#146;s initial dividend, the Trust
    intends to distribute quarterly all or a portion of its net
    investment income to holders of common shares. We expect to
    declare the initial quarterly dividend on the Trust&#146;s
    common shares approximately 45&#160;days after completion of
    this offering and to pay that initial quarterly dividend
    approximately 90 to 120&#160;days after completion of this
    offering. The Trust intends to pay any capital gains
    distributions at least annually.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Various factors will affect the level of the Trust&#146;s
    income, including the asset mix and the Trust&#146;s use of
    options and hedging. To permit the Trust to maintain a more
    stable quarterly distribution, the Trust may from time to time
    distribute less than the entire amount of income earned in a
    particular period. The undistributed income would be available
    to supplement future distributions. As a result, the
    distributions paid by the Trust for any particular quarterly
    period may be more or less than the amount of income actually
    earned by the Trust during that period. Undistributed income
    will add to the Trust&#146;s net asset value (&#147;NAV&#148;)
    (and indirectly benefits the Advisors by increasing their fees)
    and, correspondingly, distributions from undistributed income
    will reduce the Trust&#146;s NAV. See &#147;Distributions.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Shareholders will automatically have all dividends and
    distributions reinvested in common shares of the Trust in
    accordance with the </TD>
</TR>
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    <BR>
    5
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    <TD width="63%"></TD>
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    <TD></TD>
    <TD valign="bottom">
    Trust&#146;s Dividend Reinvestment Plan, unless an election is
    made to receive cash by contacting the Plan Administrator (as
    defined herein) at 1-866-216-0242. See &#147;Dividend
    Reinvestment Plan.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Under normal market conditions, the Advisors will seek to manage
    the Trust in a manner such that the Trust&#146;s distributions
    are reflective of the Trust&#146;s current and projected
    earnings levels. The distribution level of the Trust is subject
    to change based upon a number of factors, including the current
    and projected level of the Trust&#146;s earnings, and may
    fluctuate over time.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust reserves the right to change its distribution policy
    and the basis for establishing the rate of its quarterly
    distributions at any time and may do so without prior notice to
    common shareholders.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
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    <B>Listing</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The Trust&#146;s common shares have been approved for listing on
    the New York Stock Exchange (&#147;NYSE&#148;), subject to
    notice of issuance, under the symbol &#147;BUI.&#148; See
    &#147;Description of Shares&#160;&#151; Common Shares.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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    <TD valign="top">
    <B>Custodian And Transfer Agent</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The Bank of New York Mellon will serve as the Trust&#146;s
    Custodian and Transfer Agent.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Market Price Of Shares</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Common shares of closed-end investment companies frequently
    trade at a discount from their net asset value, which could be
    significant. The Trust cannot assure you that its common shares
    will trade at a price higher than or equal to net asset value at
    any time. The value of a shareholder&#146;s investment in the
    Trust will be reduced immediately following this offering by the
    sales load and the amount of the organizational and offering
    expenses paid by the Trust. See &#147;Use of Proceeds.&#148; In
    addition to net asset value, the market price of the
    Trust&#146;s common shares may be affected by such factors as
    dividend levels (which are in turn affected by expenses),
    dividend stability, option premiums, cash flow, market supply
    and demand, liquidity, market volatility, general market and
    economic conditions and other factors beyond the control of the
    Trust. See &#147;Risks,&#148; &#147;Description of Shares&#148;
    and the section of the SAI with the heading &#147;Repurchase of
    Common Shares.&#148; The common shares are designed primarily
    for long-term investors and you should not purchase common
    shares of the Trust if you intend to sell them shortly after
    purchase.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Special Risk Considerations</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    An investment in common shares of the Trust involves risk. You
    should consider carefully the risks discussed below, which are
    described in more detail under &#147;Risks&#148; beginning on
    page&#160;28 of this prospectus.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>No Operating History.</I>&#160;&#160;The Trust is a newly
    organized, non-diversified, closed-end management investment
    company with no operating history. As a result, prospective
    investors have no track record or history on which to base their
    investment decision.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Investment and Market Discount Risk.</I>&#160;&#160;An
    investment in the Trust&#146;s common shares is subject to
    investment risk, including the possible loss of the entire
    amount that you invest. Your investment in common shares
    represents an indirect investment in the securities owned by the
    Trust, a majority of which are traded on a securities exchange
    or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets. The value of these securities, like other market
    investments, may move up or down, sometimes rapidly and </TD>
</TR>
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    <BR>
    6
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    <TD></TD>
    <TD valign="bottom">
    unpredictably. As with any stock, the price of the Trust&#146;s
    common shares will fluctuate with market conditions and other
    factors. If shares are sold, the price received may be more or
    less than the original investment. The value of your investment
    in the Trust will be reduced immediately following the initial
    offering by the amount of the sales load and the amount of the
    organizational and offering expenses paid by the Trust. Common
    shares are designed for long-term investors and should not be
    treated as trading vehicles. Shares of closed-end management
    investment companies frequently trade at a discount from their
    net asset value, which could be significant. This risk is
    separate and distinct from the risk that the Trust&#146;s net
    asset value could decrease as a result of its investment
    activities. At any point in time, including immediately after
    the completion of this offering, an investment in the
    Trust&#146;s common shares may be worth substantially less than
    the original amount invested, even after taking into account
    distributions paid by the Trust. This risk may be greater for
    investors who sell their common shares in a relatively short
    period of time after completion of the initial offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Common Stock Risk.</I>&#160;&#160;The Trust will have
    exposure to common stocks. Although common stocks have
    historically generated higher average total returns than
    fixed-income securities over the long term, common stocks also
    have experienced significantly more volatility in those returns
    and may significantly under-perform relative to fixed income
    securities during certain periods. An adverse event, such as an
    unfavorable earnings report, may depress the value of a
    particular common stock held by the Trust. Also, the price of
    common stocks is sensitive to general movements in the stock
    market and a drop in the stock market may depress the price of
    common stocks to which the Trust has exposure. Common stock
    prices fluctuate for several reasons, including changes in
    investors&#146; perceptions of the financial condition of an
    issuer or the general condition of the relevant stock market, or
    when political or economic events affecting the issuers occur.
    In addition, common stock prices may be particularly sensitive
    to rising interest rates, as the cost of capital rises and
    borrowing costs increase.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Concentration Risk.</I>&#160;&#160;The Trust&#146;s
    investments will be concentrated in issuers in the Utilities and
    Infrastructure business segments. Because the Trust will be
    concentrated in those business segments, it may be subject to
    more risks than if it were broadly diversified over numerous
    industries and sectors of the economy. General changes in market
    sentiment towards Utilities or Infrastructure companies may
    adversely affect the Trust, and the performance of Utilities and
    Infrastructure issuers may lag behind the broader market as a
    whole. Also, the Trust&#146;s concentration in the Utilities and
    Infrastructure business segments may subject the Trust to a
    variety risks associated with those business segments. See
    &#147;Risks&#160;&#151; Risks of Investing in Utilities and
    Infrastructure Issuers.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Risks of Investing in Utilities and Infrastructure
    Issuers.</I>&#160;&#160;Investments in issuers in the Utilities
    and Infrastructure business segments are subject to certain
    risks, including the following:</TD>
</TR>

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    <BR>
    7
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    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
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    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Utilities Companies Risk</U>.</I>&#160;&#160;A variety of
    factors may adversely affect the business or operations of
    Utilities issuers, including: high interest costs in connection
    with capital construction and improvement programs; governmental
    regulation of rates charged to customers (including the
    potential that costs incurred by the utility change more rapidly
    than the rate the utility is permitted to charge its customers);
    costs associated with compliance with and changes in
    environmental and other regulations; effects of economic
    slowdowns and surplus capacity; increased competition from other
    providers of utility services; inexperience with and potential
    losses resulting from a developing deregulatory environment;
    costs associated with reduced availability of certain types of
    fuel; the effects of energy conservation policies; effects of a
    national energy policy; technological innovations; potential
    impact of terrorist activities; the impact of natural or
    man-made disasters; regulation by various governmental
    authorities, including the imposition of special tariffs; and
    changes in tax laws, regulatory policies and accounting
    standards.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Infrastructure Companies
    Risk</U>.</I>&#160;&#160;Infrastructure issuers may be
    susceptible to a variety of factors that may adversely affect
    their business and operations, including high interest costs in
    connection with capital construction programs; high leverage;
    costs associated with environmental and other regulations;
    surplus capacity costs; and reduced investment in public and
    private infrastructure projects. A slowdown in new
    infrastructure projects in developing or developed markets may
    constrain the abilities of Infrastructure issuers to grow in
    global markets. Other developments, such as significant changes
    in population levels or changes in the urbanization and
    industrialization of developing countries, may reduce demand for
    products or services provided by Infrastructure issuers.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Technological Risk</U>.</I>&#160;&#160;Technological
    changes in the way a service or product is delivered may render
    existing technologies obsolete. Infrastructure assets have very
    few alternative uses should they become obsolete.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Developing Industries Risk</U>.</I>&#160;&#160;Some
    Utilities and/or Infrastructure companies are focused on
    developing new technologies and are strongly influenced by
    technological changes. Product development efforts by Utilities
    and Infrastructure companies may not result in viable commercial
    products. Utilities and Infrastructure companies may bear high
    research and development costs, which can limit their ability to
    maintain operations during periods of organizational growth or
    instability. Some Utilities and Infrastructure issuers may be in
    the early stages of operations and may have limited operating
    histories and smaller market capitalizations on average than
    companies in other sectors.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Regional Risk</U>.</I>&#160;&#160;Should an event that
    impairs assets occur in a region where a Utilities or
    Infrastructure issuer operates, the performance of such
    Utilities or Infrastructure company may be adversely affected.
    As many infrastructure assets are not </TD>
</TR>
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    <BR>
    8
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    moveable, such an event may have enduring effects on the
    Utilities or Infrastructure company that are difficult to
    mitigate.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Strategic Asset Risk</U>.</I>&#160;&#160;Utilities and
    Infrastructure companies may control significant strategic
    assets. Strategic assets are assets that have a national or
    regional profile, and may have monopolistic characteristics.
    Given the national or regional profile and/or their
    irreplaceable nature, strategic assets may constitute a higher
    risk target for terrorist acts or adverse political actions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Environmental Risk</U>.</I>&#160;&#160;Utilities and
    Infrastructure companies can have substantial environmental
    impacts. Ordinary operations or operational accidents may cause
    major environmental damage, which could cause Utilities and
    Infrastructure companies significant financial distress.
    Community and environmental groups may protest the development
    or operation of assets or facilities of Utilities or
    Infrastructure companies, and these protests may induce
    government action to the detriment of Utilities and
    Infrastructure companies.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Political and Expropriation
    Risk</U>.</I>&#160;&#160;Governments may attempt to influence
    the operations, revenue, profitability or contractual
    relationships of Utilities and Infrastructure issuers or
    expropriate Utilities or Infrastructure companies&#146; assets.
    The public interest aspect of the products and services provided
    by Utilities and Infrastructure companies means political
    oversight will remain pervasive.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Operational Risk</U>.</I>&#160;&#160;The long-term
    profitability of Utilities and Infrastructure companies is
    partly dependent on the efficient operation and maintenance of
    their assets. Utilities and Infrastructure issuers may be
    subject to service interruptions due to environmental disasters,
    operational accidents or terrorist activities, which may impair
    their ability to maintain payments of dividends or interest to
    investors. The destruction or loss of an asset or facility may
    have a major adverse impact on a Utilities or Infrastructure
    issuer. Failure by the Utilities or Infrastructure issuer to
    operate and maintain its assets or facilities appropriately or
    to carry appropriate, enforceable insurance could lead to
    significant losses.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Regulatory Risk</U>.</I>&#160;&#160;Many Utilities and
    Infrastructure companies are subject to significant federal,
    state and local government regulation, which may include how
    facilities are constructed, maintained and operated,
    environmental and safety controls and the prices they may charge
    for the products and services they provide. Various governmental
    authorities have the power to enforce compliance with these
    regulations and the permits issued under them, and violators are
    subject to administrative, civil and criminal penalties,
    including civil fines, injunctions or both. Stricter laws,
    regulations or enforcement policies could be enacted in the
    future which would likely increase compliance costs and may
    adversely affect the operations and financial performance of
    Utilities and Infrastructure issuers. Regulators that have the
    power to set or modify the prices Utilities and Infrastructure
    issuers can charge for their products or services can have a
    significant impact </TD>
</TR>
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    <BR>
    9
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</TD>
    <TD></TD>
    <TD valign="bottom">
    on the profitability of such Utilities and Infrastructure
    issuers. The returns on regulated assets or services are usually
    stable during regulated periods, but may be volatile during any
    period that rates are reset by the regulator.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Interest Rate Risk</U>.</I>&#160;&#160;Due to the high
    costs of developing, constructing, operating and distributing
    assets and facilities, many Utilities and Infrastructure
    companies are highly leveraged. As such, movements in the level
    of interest rates may affect the returns from these assets. The
    structure and nature of the debt is therefore an important
    element to consider in assessing the interest rate risk posed by
    Utilities and Infrastructure issuers. In particular, the type of
    facilities, maturity profile, rates being paid, fixed versus
    variable components and covenants in place (including how they
    impact returns to equity holders) are crucial factors in
    assessing the degree of interest rate risk.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><U>Inflation Risk</U>.</I>&#160;&#160;Many Utility and
    Infrastructure companies may have fixed income streams and,
    therefore, be unable to increase their dividends during
    inflationary periods. The market value of Utility or
    Infrastructure companies may decline in value in times of higher
    inflation rates. The prices that a Utility or Infrastructure
    company is able to charge users of its assets may not always be
    linked to inflation. In this case, changes in the rate of
    inflation may affect the forecast profitability of the Utility
    or Infrastructure company.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    For additional discussion of these and other risks associated
    with investments in Utilities and Infrastructure issuers see
    &#147;Risks&#160;&#151; Risks of Investing in Utilities and
    Infrastructure Issuers.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Securities Risk and Emerging Markets
    Risk.</I>&#160;&#160;Investing in
    <FONT style="white-space: nowrap">non-U.S.</FONT>
    securities involves certain risks not involved in domestic
    investments, including, but not limited to: fluctuations in
    foreign exchange rates; future foreign economic, financial,
    political and social developments; different legal systems; the
    possible imposition of exchange controls or other foreign
    governmental laws or restrictions, including expropriation;
    lower trading volume; much greater price volatility and
    illiquidity of certain
    <FONT style="white-space: nowrap">non-U.S.</FONT>
    securities markets; different trading and settlement practices;
    less governmental supervision; changes in currency exchange
    rates; high and volatile rates of inflation; fluctuating
    interest rates; less publicly available information; and
    different accounting, auditing and financial recordkeeping
    standards and requirements.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Investing in securities of issuers based in underdeveloped
    emerging markets entails all of the risks of investing in
    securities of
    <FONT style="white-space: nowrap">non-U.S.</FONT>
    issuers to a heightened degree. &#147;Emerging market
    countries&#148; generally include every nation in the world
    except developed countries, that is the United States, Canada,
    Japan, Australia, New Zealand and most countries located in
    Western Europe. These heightened risks include: greater risks of
    expropriation, confiscatory taxation, nationalization, and less
    social, political and economic stability; smaller markets for
    such securities and a lower volume of trading, resulting in lack
    of liquidity and an increase in price volatility; and certain
    national policies that may restrict the Trust&#146;s investment
    opportunities including restrictions on investing in issuers or
    industries deemed sensitive to </TD>
</TR>
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    <BR>
    10
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    relevant national interests. See
    <FONT style="white-space: nowrap">&#147;Non-U.S.</FONT>
    Securities Risk and Emerging Markets Risk.&#148;</TD>
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    <I>Foreign Currency Risk.</I>&#160;&#160;Because the Trust may
    invest in securities denominated or quoted in currencies other
    than the U.S. dollar, changes in foreign currency exchange rates
    may affect the value of securities owned by the Trust, the
    unrealized appreciation or depreciation of investments and gains
    on and income from investments. Currencies of certain countries
    may be volatile and therefore may affect the value of securities
    denominated in such currencies, which means that the
    Trust&#146;s net asset value could decline as a result of
    changes in the exchange rates between foreign currencies and the
    U.S. dollar. These risks often are heightened for investments in
    emerging market countries. In addition, the Trust may enter into
    foreign currency transactions in an attempt to hedge its
    currency exposure or enhance its total return, which may further
    expose the Trust to the risks of foreign currency movements and
    other risks. The use of foreign currency transactions can result
    in the Trust incurring losses as a result of the imposition of
    exchange controls, suspension of settlements or the inability of
    the Trust to deliver or receive a specified currency.</TD>
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    <I>Small and Mid-Capitalization Stock Risk.</I>&#160;&#160;The
    Trust may invest in companies with small, medium and large
    capitalizations. Smaller and medium capitalization company
    stocks can be more volatile than, and perform differently from,
    larger capitalization company stocks. There may be less trading
    in a smaller or medium capitalization company&#146;s stock,
    which means that buy and sell transactions in that stock could
    have a larger impact on the stock&#146;s price than is the case
    with larger capitalization company stocks. Smaller and medium
    capitalization companies may have fewer business lines; changes
    in any one line of business, therefore, may have a greater
    impact on a smaller or medium capitalization company&#146;s
    stock price than is the case for a larger capitalization
    company. The Trust may need a considerable amount of time to
    purchase or sell its positions in these securities. In addition,
    smaller or medium capitalization company stocks may not be well
    known to the investing public.</TD>
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    <I>Liquidity Risk.</I>&#160;&#160;In some circumstances,
    investments may be relatively illiquid making it difficult to
    acquire or dispose of them at the prices quoted on relevant
    exchanges or at all. Accordingly, the Trust&#146;s ability to
    respond to market movements may be impaired and the Trust may
    experience adverse price movements upon liquidation of its
    investments. Settlement of transactions may be subject to delay
    and administrative uncertainties.</TD>
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    <I>MLP Risk.</I>&#160;&#160;As compared to common stockholders
    of a corporation, holders of MLP units have more limited control
    and limited rights to vote on matters affecting the partnership.
    In addition, there are certain tax risks associated with an
    investment in MLP units and conflicts of interest may exist
    between common unit holders and the general partner, including
    those arising from incentive distribution payments.</TD>
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    A change in current tax law, or a change in the business of a
    given MLP, could result in an MLP being treated as a corporation
    for U.S. federal income tax purposes, which would result in such
    MLP being </TD>
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    required to pay U.S. federal income tax on its taxable income.
    Thus, if any of the MLPs owned by the Trust were treated as
    corporations for U.S. federal income tax purposes, the after-tax
    return to the Trust with respect to its investment in such MLPs
    would be materially reduced, which could cause a decline in the
    value of the common stock.</TD>
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    To the extent that the Trust invests in the equity securities of
    an MLP, the Trust will be a partner in such MLP. Accordingly,
    the Trust will be required to include in its taxable income the
    Trust&#146;s allocable share of the income, gains, losses,
    deductions and expenses recognized by each such MLP, regardless
    of whether the MLP distributes cash to the Trust. The Trust will
    incur a current tax liability on its allocable share of an
    MLP&#146;s income and gains that is not offset by the MLP&#146;s
    tax deductions, losses and credits, or its net operating loss
    carryforwards, if any. The portion, if any, of a distribution
    received by the Trust from an MLP that is offset by the
    MLP&#146;s tax deductions, losses or credits is essentially
    treated as a return of capital. The percentage of an MLP&#146;s
    income and gains that is offset by tax deductions, losses and
    credits will fluctuate over time for various reasons. A
    significant slowdown in acquisition activity or capital spending
    by MLPs held in the Trust&#146;s portfolio could result in a
    reduction of accelerated depreciation generated by new
    acquisitions, which may result in increased current tax
    liability for the Trust.</TD>
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    Because of the Trust&#146;s investments in equity securities of
    MLPs, the Trust&#146;s earnings and profits may be calculated
    using accounting methods that are different from those used for
    calculating taxable income. Because of these differences, the
    Trust may make distributions out of its current or accumulated
    earnings and profits, which will be treated as dividends, in
    years in which the Trust&#146;s distributions exceed its taxable
    income. In addition, changes in tax laws or regulations, or
    future interpretations of such laws or regulations, could
    adversely affect the Trust or the MLP investments in which the
    Trust invests. See &#147;Risks&#160;&#151; MLP Risk&#148; and
    &#147;Tax Matters.&#148;</TD>
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    <I>Risks Associated with the Trust&#146;s Option
    Strategy.</I>&#160;&#160;The ability of the Trust to achieve its
    investment objective is partially dependent on the successful
    implementation of its option strategy. There are several risks
    associated with transactions in options on securities used in
    connection with the Trust&#146;s option strategy. For example,
    there are significant differences between the securities and
    options markets that could result in an imperfect correlation
    between these markets, causing a given transaction not to
    achieve its objectives. A decision as to whether, when and how
    to use options involves the exercise of skill and judgment, and
    even a well conceived transaction may be unsuccessful to some
    degree because of market behavior or unexpected events.</TD>
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    As the writer of a call option covered with a security held by
    the Trust, the Trust forgoes, during the option&#146;s life, the
    opportunity to profit from increases in the market value of the
    security covering the call option above the sum of the premium
    and the strike price of the call, but has retained the risk of
    loss should the price of the underlying security decline. As the
    Trust writes such covered calls over more of its portfolio, its
    ability to benefit from capital appreciation becomes more </TD>
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    limited. To the extent the Trust writes call options that are
    not fully covered by securities in its portfolio (such as calls
    on an index or sector), it will lose money if the portion of the
    security or securities underlying the option that is not covered
    by securities in the Trust&#146;s portfolio appreciate in value
    above the exercise price of the option by an amount that exceeds
    the premium received on the option. The amount of this loss
    could be unlimited. The writer of an option has no control over
    the time when it may be required to fulfill its obligation as a
    writer of the option.</TD>
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    When the Trust writes covered put options, it bears the risk of
    loss if the value of the underlying stock declines below the
    exercise price minus the put premium. If the option is
    exercised, the Trust could incur a loss if it is required to
    purchase the stock underlying the put option at a price greater
    than the market price of the stock at the time of exercise plus
    the put premium the Trust received when it wrote the option.
    While the Trust&#146;s potential gain as the writer of a covered
    put option is limited to the premium received from the purchaser
    of the put option, the Trust risks a loss equal to the entire
    exercise price of the option minus the put premium.</TD>
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    Risks that may adversely affect the ability of the Trust to
    successfully implement its option strategy include the
    following: &#147;Risks Associated with Options on Securities
    Generally,&#148; &#147;Risks of Writing Options,&#148;
    &#147;Exchange-Listed Option Risks,&#148;
    <FONT style="white-space: nowrap">&#147;Over-the-Counter</FONT>
    Option Risk,&#148; &#147;Index Option Risk,&#148;
    &#147;Limitations on Option Writing Risk&#148; and &#147;Tax
    Risk.&#148; For more information on these risks, please see
    &#147;Risks&#160;&#151; Risks Associated with the Trust&#146;s
    Option Strategy.&#148;</TD>
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    <I>Below Investment Grade Securities Risk.</I>&#160;&#160;The
    Trust may invest up to 10% of its total assets in securities
    that are rated below investment grade, which are commonly
    referred to as &#147;high yield securities&#148; or &#147;junk
    bonds&#148; and are regarded as predominantly speculative with
    respect to the issuer&#146;s capacity to pay interest and repay
    principal.</TD>
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    Lower grade securities may be particularly susceptible to
    economic downturns. It is likely that an economic recession
    could disrupt severely the market for such securities and may
    have an adverse impact on the value of such securities. In
    addition, it is likely that any such economic downturn could
    adversely affect the ability of the issuers of such securities
    to repay principal and pay interest thereon and increase the
    incidence of default for such securities.</TD>
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    Lower grade securities, though high yielding, are characterized
    by high risk. They may be subject to certain risks with respect
    to the issuing entity and to greater market fluctuations than
    certain lower yielding, higher rated securities. The retail
    secondary market for lower grade securities may be less liquid
    than that for higher rated securities. Adverse conditions could
    make it difficult at times for the Trust to sell certain
    securities or could result in lower prices than those used in
    calculating the Trust&#146;s net asset value. Because of the
    substantial risks associated with investments in lower grade
    securities, you could lose money on your investment in common
    shares of the Trust, both in the short-term and the long-term.</TD>
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    Ratings are relative, subjective and not absolute standards of
    quality. Securities ratings are based largely on the
    issuer&#146;s historical financial condition and the rating
    agencies&#146; analysis at the time of rating. Consequently, the
    rating assigned to any particular security is not necessarily a
    reflection of the issuer&#146;s current financial condition.</TD>
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    <I>Unrated Securities Risk.</I>&#160;&#160;Because the Trust may
    purchase securities that are not rated by any rating
    organization, the Advisors may, after assessing their credit
    quality, internally assign ratings to certain of those
    securities in categories of those similar to those of rating
    organizations. Some unrated securities may not have an active
    trading market or may be difficult to value, which means the
    Trust might have difficulty selling them promptly at an
    acceptable price.</TD>
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    <I>Investment Companies and ETFs Risk.</I>&#160;&#160;Subject to
    the limitations set forth in the Investment Company Act of 1940,
    as amended (the &#147;Investment Company Act&#148;) or as
    otherwise permitted by the Securities and Exchange Commission
    (the &#147;SEC&#148;), the Trust may acquire shares in other
    investment companies and ETFs, some of which may be investment
    companies. The market value of the shares of other investment
    companies and ETFs may differ from their NAV. As an investor in
    investment companies and ETFs, the Trust would bear its ratable
    share of that entity&#146;s expenses, including its investment
    advisory and administration fees, while continuing to pay its
    own advisory and administration fees and other expenses. As a
    result, shareholders will be absorbing duplicate levels of fees
    with respect to investments in other investment companies and
    ETFs.</TD>
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    The securities of other investment companies and ETFs in which
    the Trust may invest may be leveraged. As a result, the Trust
    may be indirectly exposed to leverage through an investment in
    such securities. An investment in securities of other investment
    companies and ETFs that use leverage may expose the Trust to
    higher volatility in the market value of such securities and the
    possibility that the Trust&#146;s long-term returns on such
    securities (and, indirectly, the long-term returns of the
    Shares) will be diminished.</TD>
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    <I>Strategic Transactions Risk.</I>&#160;&#160;Strategic
    transactions in which the Trust may engage in an effort to hedge
    all or a portion of the portfolio or to seek to enhance total
    return, including engaging in transactions, such as options,
    futures, swaps, foreign currency transactions, such as forward
    foreign currency contracts, currency swaps or options on
    currency and currency futures, and other derivatives
    transactions (&#147;Strategic Transactions&#148;) also involve
    certain risks and special considerations. Strategic Transactions
    have risks, including the imperfect correlation between the
    value of such instruments and the underlying assets, the
    possible default of the other party to the transaction or
    illiquidity of the derivative instruments. Furthermore, the
    ability to successfully use Strategic Transactions depends on
    the Advisors&#146; ability to predict pertinent market
    movements, which cannot be assured. Thus, the use of Strategic
    Transactions may result in losses greater than if they had not
    been used, may require the Trust to sell or purchase portfolio
    securities at inopportune times or for prices other than current
    market values, may limit the amount of appreciation the Trust
    can realize on an investment, or may cause the Trust to hold a </TD>
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    security that it might otherwise sell. The use of foreign
    currency transactions can result in the Trust incurring losses
    as a result of the imposition of exchange controls, suspension
    of settlements or the inability of the Trust to deliver or
    receive a specified currency. Additionally, amounts paid by the
    Trust as premiums and cash or other assets held in margin
    accounts with respect to Strategic Transactions are not
    otherwise available to the Trust for investment purposes.</TD>
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    <I>Counterparty Risk.</I>&#160;&#160;The Trust will be subject
    to credit risk with respect to the counterparties to the
    derivative contracts entered into by the Trust. If a
    counterparty becomes bankrupt or otherwise fails to perform its
    obligations under a derivative contract due to financial
    difficulties, the Trust may experience significant delays in
    obtaining any recovery under the derivative contract in
    bankruptcy or other reorganization proceedings. The Trust may
    obtain only a limited recovery, or may obtain no recovery, in
    such circumstances.</TD>
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    <I>Non-Diversification Risk.</I>&#160;&#160;The Trust has
    registered as a &#147;non-diversified&#148; investment company
    under the Investment Company Act. For federal income tax
    purposes, the Trust, with respect to up to 50% of its total
    assets, will be able to invest more than 5% (but not more than
    25%, except for investments in United States government
    securities and securities of other regulated investment
    companies, which are not limited for tax purposes) of the value
    of its total assets in the securities of any single issuer or
    the securities of one or more qualified publicly traded
    partnerships. To the extent the Trust invests a relatively high
    percentage of its assets in the securities of a limited number
    of issuers, the Trust may be more susceptible than a more widely
    diversified investment company to any single corporate,
    economic, political or regulatory occurrence. The Trust&#146;s
    investments will be concentrated in a group of industries that
    make up the Utilities and Infrastructure business segments,
    which means they may present more risks than if the Trust was
    broadly diversified over numerous industries and sectors of the
    economy. See &#147;Risks&#160;&#151; Risks of Investing in
    Utilities and Infrastructure Issuers.&#148;</TD>
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    <I>United States Credit Rating Downgrade
    Risk.</I>&#160;&#160;The events surrounding the recent
    negotiations regarding the U.S. federal government debt ceiling
    and the resulting agreement could adversely affect the
    Trust&#146;s ability to achieve its investment objective. On
    August&#160;5, 2011, S&#038;P lowered its long-term sovereign
    credit rating on the U.S. federal government debt to
    &#147;AA+&#148; from &#147;AAA.&#148; The downgrade by S&#038;P
    could increase volatility in both stock and bond markets, result
    in higher interest rates and higher Treasury yields and increase
    the costs of all kinds of debt. These events could have
    significant adverse effects on the economy generally. Neither
    the Advisor nor the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    can predict the effects of these or similar events in the future
    on the U.S. economy and securities markets or on the
    Trust&#146;s portfolio. The Advisors intend to monitor
    developments and seek to manage the Trust&#146;s portfolio in a
    manner consistent with achieving the Trust&#146;s investment
    objective, but there can be no assurance that it will be
    successful in doing so and the Advisors may not timely
    anticipate or </TD>
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    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    manage existing, new or additional risks, contingencies or
    developments.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Market Disruption and Geopolitical Risk.</I>&#160;&#160;The
    aftermath of the war in Iraq, instability in Afghanistan,
    Pakistan and the Middle East and terrorist attacks in the United
    States and around the world may result in market volatility, may
    have long-term effects on the U.S. and worldwide financial
    markets and may cause further economic uncertainties in the
    United States and worldwide. The Trust does not know how long
    the securities markets may be affected by these events and
    cannot predict the effects of these events or similar events in
    the future on the U.S. economy and securities markets.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Potential Conflicts of Interest Risk&#160;&#151; Allocation
    of Investment Opportunities.</I>&#160;&#160;BlackRock, Inc.
    (&#147;BlackRock&#148;), BlackRock&#146;s affiliates
    (&#147;Affiliates&#148;) and BlackRock&#146;s significant
    shareholders (&#147;Significant Shareholders&#148;) are involved
    worldwide with a broad spectrum of financial services and asset
    management activities and may engage in the ordinary course of
    business in activities in which their interests or the interests
    of their clients may conflict with those of the Trust.
    BlackRock, its Affiliates and Significant Shareholders may
    provide investment management services to other funds and
    discretionary managed accounts that follow an investment program
    similar to that of the Trust. Subject to the requirements of the
    Investment Company Act, BlackRock, its Affiliates and
    Significant Shareholders intend to engage in such activities and
    may receive compensation from third parties for their services.
    Neither BlackRock nor its Affiliates or Significant Shareholders
    are under any obligation to share any investment opportunity,
    idea or strategy with the Trust. As a result, BlackRock, its
    Affiliates and Significant Shareholders may compete with the
    Trust for appropriate investment opportunities. The results of
    the Trust&#146;s investment activities, therefore, may differ
    from those of an Affiliate, Significant Shareholder or another
    account managed by an Affiliate or Significant Shareholder, and
    it is possible that the Trust could sustain losses during
    periods in which one or more Affiliates or Significant
    Shareholders and other accounts achieve profits on their trading
    for proprietary or other accounts. BlackRock has adopted
    policies and procedures designed to address potential conflicts
    of interests. For additional information about potential
    conflicts of interest, and the way in which BlackRock addresses
    such conflicts, please see &#147;Conflicts of Interest&#148; and
    &#147;Management of the Trust&#160;&#151; Potential Material
    Conflicts of Interest&#148; in the SAI.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Additional Risks.</I>&#160;&#160;For additional risks
    relating to investments in the Trust, including &#147;Issuer
    Risk,&#148; &#147;Investments in Unseasoned Companies
    Risk,&#148; &#147;Fixed Income Securities Risk,&#148;
    &#147;Securities Lending Risk,&#148; &#147;Dividend Risk,&#148;
    &#147;Derivatives Risk,&#148; &#147;Inflation Risk,&#148;
    &#147;Deflation Risk,&#148; &#147;Risks Associated with Recent
    Market Events,&#148; &#147;Government Intervention in Financial
    Markets Risk,&#148; &#147;Legislation Risk,&#148;
    &#147;Portfolio Turnover Risk,&#148; &#147;Management
    Risk,&#148; &#147;Not a Complete Investment Program&#148; and
    &#147;Anti-Takeover Provisions Risk&#148; please see
    &#147;Risks&#148; beginning on page&#160;28 of this prospectus.</TD>
</TR>

</TABLE>
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    <BR>
    16
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF TRUST&#160;EXPENSES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table shows estimated Trust expenses as a
    percentage of net assets attributable to common shares. The
    purpose of the following table and the example below is to help
    you understand all fees and expenses that you, as a holder of
    common shares, would bear directly or indirectly. The expenses
    shown in the table under &#147;Estimated Annual Expenses&#148;
    are based on estimated amounts for the Trust&#146;s first full
    year of operations and assume that the Trust issues 15,500,000
    common shares. If the Trust issues fewer common shares, all
    other things being equal, these expenses would increase as a
    percentage of net assets attributable to the common shares. See
    &#147;Management of the Trust&#148; and &#147;Dividend
    Reinvestment Plan.&#148; The following table should not be
    considered a representation of our future expenses. Actual
    expenses may be greater or less than shown. Except where the
    context suggests otherwise, whenever this prospectus contains a
    reference to fees or expenses paid by &#147;you&#148; or
    &#147;us&#148; or that &#147;we&#148; will pay fees or expenses,
    shareholders will indirectly bear such fees or expenses as
    investors in the Trust.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Shareholder Transaction Expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales load paid by you (as a percentage of offering price)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Offering expenses borne by the Trust (as a percentage of
    offering price)(1)(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Dividend reinvestment plan fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    None
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net Assets<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Attributable to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Common Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Estimated Annual Expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total annual expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Trust will pay its
    organizational costs in full out of its seed capital prior to
    completion of this offering. The Trust will pay organizational
    and offering expenses of the Trust (other than the sales load)
    up to $0.04 per common share, which may include a reimbursement
    of BlackRock Advisors&#146; expenses incurred in connection with
    this offering. BlackRock Advisors has agreed to pay such
    organizational and offering expenses of the Trust (other than
    the sales load) to the extent that organizational and offering
    expenses (other than the sales load) exceed $0.04 per common
    share. Assuming the Trust issues 15,500,000 common shares, the
    aggregate organizational and offering expenses (other than the
    sales load) are estimated to be approximately $1,850,975 or
    $0.12 per common share, the aggregate offering expenses (other
    than the sales load) to be incurred by the Trust are estimated
    to be $620,000 or $0.04 per common share, and the aggregate
    organizational and offering expenses (other than the sales load)
    to be incurred by BlackRock Advisors on behalf of the Trust are
    estimated to be approximately $1,230,975 or $0.08 per common
    share. Any offering cost paid by the Trust will be deducted from
    the proceeds of the offering received by the Trust.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">BlackRock Advisors (and not the
    Trust) has agreed to pay, from its own assets, a structuring and
    syndication fee to Morgan Stanley &#038; Co. LLC and structuring
    fees to Citigroup Global Markets Inc., Merrill Lynch, Pierce,
    Fenner&#160;&#038; Smith Incorporated, UBS Securities LLC, Wells
    Fargo Securities, LLC and Ameriprise Financial Services, Inc.
    Because these fees are paid by BlackRock Advisors, they are not
    reflected under sales load in the table above. BlackRock
    Advisors and certain of its affiliates (and not the Trust) also
    may pay commissions to employees of its affiliates that
    participate in the marketing of the Trust&#146;s common shares.
    See &#147;Underwriters&#160;&#151; Additional Compensation to be
    Paid by the Advisor.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">You will be charged a $0.02 per
    share sold fee (which includes brokerage commissions) if you
    direct the Plan Administrator (as defined below) to sell your
    common shares held in a dividend reinvestment account.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following example illustrates the expenses (including the
    sales load of $45 and offering costs incurred by the Trust of
    $2) that you would pay on a $1,000 investment in common shares,
    assuming (1)&#160;total net annual expenses of 1.15% of net
    assets attributable to common shares in years 1 through 10, and
    (2)&#160;a 5% annual return:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">1&#160;Year</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">3&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">5&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">10&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total expenses incurred(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The example should not be
    considered a representation of future expenses. The example
    assumes that the estimated &#147;Other expenses&#148; set forth
    in the Annual expenses table are accurate and that all dividends
    and distributions are reinvested at net asset value. Actual
    expenses may be greater or less than those assumed. Moreover,
    the Trust&#146;s actual rate of return may be greater or less
    than the hypothetical 5% return shown in the example.
    </FONT></TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    17
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    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TRUST</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is a newly organized, non-diversified, closed-end
    management investment company registered under the Investment
    Company Act. The Trust was organized as a Delaware statutory
    trust on August&#160;25, 2011, pursuant to an Agreement and
    Declaration of Trust, governed by the laws of the State of
    Delaware. The Trust has no operating history. The Trust&#146;s
    principal office is located at 100 Bellevue Parkway, Wilmington,
    Delaware 19809, and its telephone number is
    <FONT style="white-space: nowrap">(800)&#160;882-0052.</FONT>
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    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The net proceeds of the offering of common shares will be
    approximately $295,430,000 ($339,744,500 if the Underwriters
    exercise the over-allotment option in full) after payment of the
    estimated organizational and offering costs. The Trust will
    invest the net proceeds of the offering in accordance with the
    Trust&#146;s investment objective and policies as stated below.
    We currently anticipate that the Trust will be able to invest
    all of the net proceeds in accordance with the Trust&#146;s
    investment objective and policies within approximately three
    months after the completion of this offering. Pending such
    investment, it is anticipated that the proceeds will be invested
    in short-term debt securities.
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    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TRUST&#146;S INVESTMENTS</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Objective and Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investment Objective.</I>&#160;&#160;The Trust&#146;s
    investment objective is to provide total return through a
    combination of current income, current gains and long-term
    capital appreciation. No assurance can be given that the Trust
    will achieve its investment objective, and investors could lose
    some or all of their investment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investment Policies.</I>&#160;&#160;The Trust seeks to
    achieve its investment objective by investing primarily in
    equity securities issued by companies that are engaged in the
    Utilities or Infrastructure business segments (as defined below)
    anywhere in the world and by utilizing an option strategy in an
    effort to enhance current gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under normal market conditions, the Trust will invest at least
    80% of its total assets in equity securities issued by companies
    that are engaged in the Utilities or Infrastructure business
    segments. The Trust considers the &#147;Utilities&#148; business
    segment to include products, technologies and services connected
    to the management, ownership operation, construction,
    development or financing of facilities used to generate,
    transmit or distribute electricity, water, natural resources or
    telecommunications and the &#147;Infrastructure&#148; business
    segment to include companies that own or operate infrastructure
    assets or that are involved in the development, construction,
    distribution or financing of infrastructure assets. See
    &#147;&#151;&#160;Portfolio Contents and Other
    Information&#160;&#151; Utilities and Infrastructure
    Issuers.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in companies of any market capitalization
    located anywhere in the world. Although the Trust expects to
    invest primarily in companies located in developed countries, it
    may invest in companies located in emerging markets. Equity
    securities in which the Trust may invest include common stocks,
    preferred stocks, convertible securities, warrants, depository
    receipts, exchange-traded funds, equity interests in real estate
    investment trusts, Canadian Royalty Trusts and MLPs. The Trust
    will not invest more than 25% of the value of its total assets
    in MLPs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest up to 20% of its total assets in equity
    securities issued by companies that are not engaged in the
    Utilities or Infrastructure business segments and debt
    securities issued by any issuer, including up to 10% of its
    total assets in non-investment grade debt securities, which are
    commonly known as &#147;junk bonds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As part of its investment strategy, the Trust currently intends
    to employ a strategy of writing (selling) covered call options
    on a portion of the common stocks in its portfolio, writing
    (selling) covered put options on a portion of the common stocks
    in its portfolio and, to a lesser extent, writing (selling)
    covered call and put options on indices of securities and
    sectors of securities. This option strategy is intended to
    generate current gains from option premiums as a means to
    enhance distributions payable to the Trust&#146;s shareholders.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the option strategies discussed above, the Trust
    may engage in Strategic Transactions in an effort to hedge all
    or a portion of the portfolio or to seek to enhance total return.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may lend securities with a value up to
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of its total assets (including such loans) to financial
    institutions that provide cash or securities issued or
    guaranteed by the U.S.&#160;government as collateral.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may implement various temporary &#147;defensive&#148;
    strategies at times when the Advisor or
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    determine that conditions in the markets make pursuing the
    Trust&#146;s basic investment strategy inconsistent with the
    best interests of its shareholders. These strategies may include
    investing all or a portion of the Trust&#146;s assets in
    U.S.&#160;government obligations and short-term debt securities
    that may be either tax-exempt or taxable. See &#147;Investment
    Policies and Techniques&#160;&#151; Cash Equivalents and
    Short-Term Debt Securities&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under current market conditions, the Trust currently does not
    intend to engage in short sales, utilize leverage or issue
    preferred shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise stated herein or in the SAI, the Trust&#146;s
    investment objective and policies are non-fundamental policies
    and may changed by the Board. In addition, the percentage
    limitations applicable to the Trust&#146;s portfolio described
    in this prospectus apply only at the time of investment, and the
    Trust will not be required to sell investments due to subsequent
    changes in the value of investments that it owns.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Composition and Other Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s portfolio will be composed principally of the
    following investments. A more detailed description of the
    Trust&#146;s investment policies and restrictions and more
    detailed information about the Trust&#146;s portfolio
    investments are contained in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Equity Securities.</I>&#160;&#160;The Trust intends to invest
    primarily in equity securities, including common stocks,
    preferred stocks, convertible securities, warrants, depository
    receipts, exchange-traded funds and equity interests in REITs,
    Canadian Royalty Trusts and MLPs. Common stock represents an
    equity ownership interest in a company. The Trust may hold or
    have exposure to common stocks of issuers of any size, including
    small and medium capitalization stocks. Because the Trust will
    ordinarily have substantial exposure to common stocks,
    historical trends would indicate that the Trust&#146;s portfolio
    and investment returns will be subject at times, and over time,
    to higher levels of volatility and market and issuer-specific
    risk than if it invested exclusively in debt securities. The
    Trust will also employ a strategy, as described below, of
    writing covered call options on common stocks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For more information regarding preferred stocks, convertible
    securities, warrants and depository receipts see
    &#147;Investment Policies and Techniques&#160;&#151; Equity
    Securities&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Utilities and Infrastructure Issuers.</I>&#160;&#160;Under
    normal market conditions, the Trust will invest at least 80% of
    its total assets in equity securities issued by Utilities or
    Infrastructure issuers. For purposes of the 80% policy above, a
    company is considered to be engaged in these business segments
    if: (i)&#160;at least 50% of its assets, income, sales or
    profits are committed to or derived from one or both of the
    Utilities or Infrastructure business segments; or (ii)&#160;a
    third party classification (such as (a)&#160;Standard Industry
    Classifications and the North American Industry Classification
    System, each of which is published by the Executive Office of
    the President, Office of Management and Budget, and
    (b)&#160;classifications by one or more third party data
    providers including, without limitation, Bloomberg L.P., FactSet
    Research Systems, Inc and MSCI Barra) has given the company an
    industry or sector classification consistent with the Utilities
    or Infrastructure business segments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Companies engaged in the Utilities or Infrastructure business
    segments can be generally categorized as engaging in, related to
    or involved with:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the generation, transmission, sale or distribution of electric
    energy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the distribution, purification and treatment of water;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the production, transmission or distribution of natural
    resources used to produce energy, such as oil, natural gas and
    coal;
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the provision of communications services, including cable
    television, satellite, microwave, radio, telephone and other
    communications media (e.g., fixed-base wireless transmission
    towers and broadband television cable);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the management, ownership or operation of infrastructure
    assets;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the construction, development, distribution or financing of
    infrastructure assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust generally considers &#147;infrastructure assets&#148;
    to consist of those assets which provide the underlying
    foundation of basic services, facilities and institutions upon
    which the growth and development of a community depends,
    including physical structures, networks and systems of
    transportation, energy, water and sewage, and communication.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Categories of infrastructure assets currently include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Assets that are natural or near-natural monopolies and are
    regulated in the level of revenue earned or charges imposed.
    Examples include certain power and gas transmission, generation
    and distribution assets and water and waste-water distribution
    and treatment facilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Assets that depend on a form of user pay system for their main
    revenue source. Examples include toll roads, bridges, tunnels,
    airports, railways, seaports and parking lots.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Assets that provide basic social services to the community.
    Examples include schools, hospitals and correction facilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Assets that compete in a market for the sale of a product or
    service and are therefore exposed to market risks. Examples
    include certain solid waste disposal facilities and certain
    communication asset classes, including communications towers,
    satellites and transmission lines.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Other types of infrastructure assets include assets related to
    the development and distribution of coal, steel and iron ore,
    gold and other precious metals, building materials, agricultural
    commodities and food and the gathering, treating, processing,
    fractionation, transportation and storage of hydrocarbon
    products.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Historically, Utilities and Infrastructure companies have
    generally paid dividends on their equity securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="white-space: nowrap">Non-U.S.&#160;Securities.</FONT></I>&#160;&#160;The
    Trust may invest in
    <FONT style="white-space: nowrap">non-U.S.&#160;securities,</FONT>
    which may include securities denominated in U.S.&#160;dollars or
    in
    <FONT style="white-space: nowrap">non-U.S.&#160;currencies</FONT>
    or multinational currency units. The Trust may invest in
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    of so-called emerging market countries.
    <FONT style="white-space: nowrap">Non-U.S.&#160;securities</FONT>
    markets generally are not as developed or efficient as those in
    the United States. Securities of some
    <FONT style="white-space: nowrap">non-U.S.&#160;issuers</FONT>
    are less liquid and more volatile than securities of comparable
    U.S.&#160;issuers. Similarly, volume and liquidity in most
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    markets are less than in the United States and, at times,
    volatility of price can be greater than in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because evidences of ownership of such securities usually are
    held outside the United States, the Trust would be subject to
    additional risks with respect to its investments in
    <FONT style="white-space: nowrap">non-U.S.&#160;securities,</FONT>
    which include possible adverse political and economic
    developments, seizure or nationalization of foreign deposits and
    adoption of governmental restrictions that might adversely
    affect or restrict the payment of principal and interest on the
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    to investors located outside the country of the issuer, whether
    from currency blockage or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Since
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    may be purchased with and payable in foreign currencies, the
    value of these assets as measured in U.S.&#160;dollars may be
    affected favorably or unfavorably by changes in currency rates
    and exchange control regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Options.</I>&#160;&#160;An option on a security is a contract
    that gives the holder of the option, in return for a premium,
    the right to buy from (in the case of a call) or sell to (in the
    case of a put) the writer of the option the security underlying
    the option at a specified exercise or &#147;strike&#148; price.
    The writer of an option on a security has the obligation upon
    exercise of the option to deliver the underlying security upon
    payment of the exercise price or to pay the exercise price upon
    delivery of the underlying security. Certain options, known as
    &#147;American style&#148; options may be exercised at any time
    during the term of the option. Other options, known as
    &#147;European style&#148; options, may be exercised only on the
    expiration date of the option.
</DIV>
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    If an option written by the Trust expires unexercised, the Trust
    realizes on the expiration date a capital gain equal to the
    premium received by the Trust at the time the option was
    written. If an option purchased by the Trust expires
    unexercised, the Trust realizes a capital loss equal to the
    premium paid. Prior to the earlier of exercise or expiration, an
    exchange-traded option may be closed out by an offsetting
    purchase or sale of an option of the same series (type,
    underlying security, exercise price and expiration). There can
    be no assurance, however, that a closing purchase or sale
    transaction can be effected when the Trust desires. The Trust
    may sell call or put options it has previously purchased, which
    could result in a net gain or loss depending on whether the
    amount realized on the sale is more or less than the premium and
    other transaction costs paid on the call or put option when
    purchased. The Trust will realize a capital gain from a closing
    purchase transaction if the cost of the closing transaction is
    less than the premium received from writing the option, or, if
    it is more, the Trust will realize a capital loss. If the
    premium received from a closing sale transaction is more than
    the premium paid to purchase the option, the Trust will realize
    a capital gain or, if it is less, the Trust will realize a
    capital loss. Net gains from the Trust&#146;s option strategy
    will be short-term capital gains which, for U.S.&#160;federal
    income tax purposes, will constitute net investment company
    taxable income.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><U>Call Options and Covered Call
    Writing</U>.</I>&#160;&#160;The Trust will follow a strategy
    known as &#147;covered call option writing,&#148; which is a
    strategy designed to generate current gains from option premiums
    as a means to enhance distributions payable to the Trust&#146;s
    shareholders. As the Trust writes covered calls over more of its
    portfolio, its ability to benefit from capital appreciation
    becomes more limited.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A call option written by the Trust on a security is
    &#147;covered&#148; if the Trust owns the security underlying
    the call or has an absolute and immediate right to acquire that
    security without additional cash consideration (or, if
    additional cash consideration is required, cash or other assets
    determined to be liquid by the Advisors (in accordance with
    procedures established by the board of trustees) in such amount
    are segregated by the Trust&#146;s custodian) upon conversion or
    exchange of other securities held by the Trust. A call option is
    also covered if the Trust holds a call on the same security as
    the call written where the exercise price of the call held is
    (i)&#160;equal to or less than the exercise price of the call
    written or (ii)&#160;greater than the exercise price of the call
    written, provided the difference is maintained by the Trust in
    segregated assets determined to be liquid by the Advisors as
    described above. The Trust may not sell &#147;naked&#148; call
    options on individual securities, i.e., options representing
    more shares of the stock than are held in the Trust&#146;s
    portfolio.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The standard contract size for a single option is
    100&#160;shares of the common stock. There are four items needed
    to identify any option: (1)&#160;the underlying security,
    (2)&#160;the expiration month, (3)&#160;the strike price and
    (4)&#160;the type (call or put). For example, ten XYZ Co.
    October 40 call options provide the right to purchase
    1,000&#160;shares of XYZ Co. on or before October at $40.00 per
    share. A call option whose strike price is above the current
    price of the underlying stock is called
    <FONT style="white-space: nowrap">&#147;out-of-the-money.&#148;</FONT>
    Most of the options that will be sold by the Trust are expected
    to be
    <FONT style="white-space: nowrap">out-of-the-money,</FONT>
    allowing for potential appreciation in addition to the proceeds
    from the sale of the option. An option whose strike price is
    below the current price of the underlying stock is called
    <FONT style="white-space: nowrap">&#147;in-the-money&#148;</FONT>
    and will be sold by the Trust as a defensive measure to protect
    against a possible decline in the underlying stock.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a conceptual example of a covered call
    transaction, making the following assumptions: (1)&#160;a common
    stock currently trading at $37.15 per share; (2)&#160;a
    six-month call option is written with a strike price of $40.00
    (i.e., 7.7% higher than the current market price); and
    (3)&#160;the writer receives $2.45 (or 6.6%) of the common
    stock&#146;s value as premium income. This example is not meant
    to represent the performance of any actual common stock, option
    contract or the Trust itself and does not reflect any
    transaction costs of entering into or closing out the option
    position. Under this scenario, before giving effect to any
    change in the price of the stock, the covered-call writer
    receives the premium, representing 6.6% of the common
    stock&#146;s value, regardless of the stock&#146;s performance
    over the six-month period until option expiration. If the stock
    remains unchanged, the option will expire and there would be a
    6.6% return for the
    <FONT style="white-space: nowrap">6-month</FONT>
    period. If the stock were to decline in price by 6.6%, the
    strategy would &#147;break-even&#148; thus offering no gain or
    loss. If the stock were to climb to a price of $40.00 or above,
    the option would be exercised and the stock would return 7.7%
    coupled with the option premium of 6.6% for a total return of
    14.3%. Under this scenario, the investor would not benefit from
    any appreciation of the stock above $40.00, and thus be limited
    to a 14.3% total return. The premium income from writing the
    call option serves to offset some of the unrealized loss on the
    stock in the event that the price of the stock declines, but if
    the stock were to decline more than
</DIV>
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    6.6% under this scenario, the investor&#146;s downside
    protection is eliminated and the stock could eventually become
    worthless.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For conventional listed call options, the option&#146;s
    expiration date can be up to nine months from the date the call
    options are first listed for trading. Longer-term call options
    can have expiration dates up to three years from the date of
    listing. It is anticipated that most options that are written
    against Trust stock holdings will be repurchased prior to the
    option&#146;s expiration date, generating a gain or loss in the
    options. If the options were not to be repurchased, the option
    holder would exercise their rights and buy the stock from the
    Trust at the strike price if the stock traded at a higher price
    than the strike price. In general, the Trust intends to continue
    to hold its common stocks rather than allowing them to be called
    away by the option holders.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><U>Put Options</U>.</I>&#160;&#160;Put options are contracts
    that give the holder of the option, in return for a premium, the
    right to sell to the writer of the option the security
    underlying the option at a specified exercise price at any time
    during the term of the option. Put option strategies may produce
    a higher return than covered call writing, but may involve a
    higher degree of risk and potential volatility.
</DIV>

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    The Trust will write (sell) put options on individual securities
    only if the put option is &#147;covered.&#148; A put option
    written by the Trust on a security is &#147;covered&#148; if the
    Trust segregates or earmarks assets determined to be liquid by
    the Advisors, as described above, equal to the exercise price. A
    put option is also covered if the Trust holds a put on the same
    security as the put written where the exercise price of the put
    held is (i)&#160;equal to or greater than the exercise price of
    the put written, or (ii)&#160;less than the exercise price of
    the put written, provided the difference is maintained by the
    Trust in segregated or earmarked assets determined to be liquid
    by the Advisors, as described above.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a conceptual example of a put transaction,
    making the following assumptions: (1)&#160;a common stock
    currently trading at $37.15 per share; (2)&#160;a six-month put
    option written with a strike price of $35.00 (i.e., 94.21% of
    the current market price); and (3)&#160;the writer receives
    $1.10 or 2.96% of the common stock&#146;s value as premium
    income. This example is not meant to represent the performance
    of any actual common stock, option contract or the Trust itself
    and does not reflect any transaction costs of entering into or
    closing out the option position. Under this scenario, before
    giving effect to any change in the price of the stock, the put
    writer receives the premium, representing 2.96% of the common
    stock&#146;s value, regardless of the stock&#146;s performance
    over the six-month period until the option expires. If the stock
    remains unchanged, appreciates in value or declines less than
    5.79% in value, the option will expire and there would be a
    2.96% return for the six-month period. If the stock were to
    decline by 5.79% or more, the Trust would lose an amount equal
    to the amount by which the stock&#146;s price declined minus the
    premium paid to the Trust. The stock&#146;s price could lose its
    entire value, in which case the Trust would lose $33.90 ($35.00
    minus $1.10).
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><U>Options on Indices</U>.</I>&#160;&#160;The Trust may sell
    call and put options on stock indices or sectors. Because index
    and sector options both refer to options on baskets of
    securities and generally have similar characteristics, we refer
    to these types of options collectively as &#147;index&#148;
    options. Options on an index differ from options on individual
    securities because (i)&#160;the exercise of an index option
    requires cash payments and does not involve the actual purchase
    or sale of securities, (ii)&#160;the holder of an index option
    has the right to receive cash upon exercise of the option if the
    level of the index upon which the option is based is greater, in
    the case of a call, or less, in the case of a put, than the
    exercise price of the option and (iii)&#160;index options
    reflect price-fluctuations in a group of securities or segments
    of the securities market rather than price fluctuations in a
    single security.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As the seller of an index call or put option, the Trust receives
    cash (the premium) from the purchaser. The purchaser of an index
    call option has the right to any appreciation in the value of
    the index over a fixed price (the exercise price) on or before a
    certain date in the future (the expiration date). The purchaser
    of an index put option has the right to any depreciation in the
    value of the index below a fixed price (the exercise price) on
    or before a certain date in the future (the expiration date).
    The Trust, in effect, agrees to sell the potential appreciation
    (in the case of a call) or accept the potential depreciation (in
    the case of a put) in the value of the relevant index in
    exchange for the premium. If, at or before expiration, the
    purchaser exercises the call or put option sold by the Trust,
    the Trust will pay the purchaser the difference between the cash
    value of the index and the exercise price of the index option.
    The premium, the exercise price and the market value of the
    index determine the gain or loss realized by the Trust as the
    seller of the index call or put option.
</DIV>
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    The Trust may execute a closing purchase transaction with
    respect to an index option it has sold and sell another option
    (with either a different exercise price or expiration date or
    both). The Trust&#146;s objective in entering into such a
    closing transaction will be to optimize net index option
    premiums. The cost of a closing transaction may reduce the net
    index option premiums realized from the sale of the index option.
</DIV>

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    The Trust will cover its obligations when it sells index
    options. An index option is considered &#147;covered&#148; if
    the Trust maintains with its custodian assets determined to be
    liquid by the Advisors (in accordance with procedures
    established by the Board) in an amount equal to the contract
    value of the applicable basket of securities. An index or sector
    put option also is &#147;covered&#148; if the Trust holds a put
    on the same basket of securities as the put written where the
    exercise price of the put held is (i)&#160;equal to or more than
    the exercise price of the put written, or (ii)&#160;less than
    the exercise price of the put written, provided the difference
    is maintained by the Trust in segregated assets determined to be
    liquid by the Advisors as described above. An index or sector
    call option also is &#147;covered&#148; if the Trust holds a
    call on the same basket of securities as the call written where
    the exercise price of the call held is (i)&#160;equal to or less
    than the exercise price of the call written, or
    (ii)&#160;greater than the exercise price of the call written,
    provided the difference is maintained by the Trust in segregated
    assets determined to be liquid.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><U>Limitation on Option Writing
    Strategy</U>.</I>&#160;&#160;Under normal market conditions, the
    Trust generally intends to write covered call and put options
    with respect to approximately 30% to 40% of its total assets,
    although this percentage may vary from time to time with market
    conditions. Initially, the Trust anticipates writing covered
    call and put options with respect to approximately 33% of its
    total assets. As the Trust writes covered calls over more of its
    portfolio, its ability to benefit from capital appreciation
    becomes more limited.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The number of covered call and put options on securities the
    Trust can write is limited by the total assets the Trust holds,
    and further limited by the fact that all options represent
    100&#160;share lots of the underlying common stock. The Trust
    will not write &#147;naked&#148; or uncovered call or put
    options, other than those that are &#147;covered&#148; by the
    segregation of liquid assets as described above. Furthermore,
    the Trust&#146;s exchange-listed option transactions will be
    subject to limitations established by each of the exchanges,
    boards of trade or other trading facilities on which such
    options are traded. These limitations govern the maximum number
    of options in each class which may be written or purchased by a
    single investor or group of investors acting in concert,
    regardless of whether the options are written or purchased on
    the same or different exchanges, boards of trade or other
    trading facilities or are held or written in one or more
    accounts or through one or more brokers. Thus, the number of
    options which the Trust may write or purchase may be affected by
    options written or purchased by other investment advisory
    clients of the Advisors. An exchange, board of trade or other
    trading facility may order the liquidation of positions found to
    be in excess of these limits, and it may impose certain other
    sanctions.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Master Limited Partnerships.</I>&#160;&#160;The Trust may
    invest up to 25% of the value of its total assets in MLPs. The
    MLPs in which the Trust intends to invest will be limited
    partnerships (or limited liability companies taxable as
    partnerships), the units of which will be listed and traded on a
    U.S.&#160;securities exchange. In addition, such MLPs will
    derive income and gains from the exploration, development,
    mining or production, processing, refining, transportation
    (including pipeline transporting gas, oil, or products thereof),
    or the marketing of any mineral or natural resources. The Trust
    may, however, invest in MLP entities in any sector of the
    economy.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An MLP is an entity receiving partnership taxation treatment
    under the Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;), and whose interests or &#147;units&#148; are
    traded on securities exchanges like shares of corporate stock.
    MLPs generally have two classes of owners, the general partner
    and limited partners. When investing in an MLP, the Trust
    intends to purchase publicly traded common units issued to
    limited partners of the MLP. The general partner is typically
    owned by one or more of the following: a major energy company,
    an investment fund, or the direct management of the MLP. The
    general partner may be structured as a private or publicly
    traded corporation or other entity. The general partner
    typically controls the operations and management of the MLP; has
    an ownership stake in the partnership, typically a 2% general
    partner equity interest and usually additional common units and
    subordinated units; and is eligible to receive an incentive
    distribution. Limited partners own the remainder of the
    partnership, through ownership of common units, and have a
    limited role in the partnership&#146;s operations and
    management. The limited partners also receive cash distributions.
</DIV>

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    MLPs are typically structured such that common units and general
    partner interests have first priority to receive quarterly cash
    distributions up to an established minimum amount (&#147;minimum
    quarterly distributions&#148; or
</DIV>
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    &#147;MQD&#148;). Common and general partner interests also
    accrue arrearages in distributions to the extent the MQD is not
    paid. Once common and general partner interests have been paid,
    subordinated units receive distributions of up to the MQD;
    however, subordinated units do not accrue arrearages.
    Distributable cash in excess of the MQD paid to both common and
    subordinated units is distributed to both common and
    subordinated units generally on a pro rata basis.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The general partner is also eligible to receive incentive
    distributions if the general partner operates the business in a
    manner that results in distributions paid per common unit
    surpassing specified target levels. As the general partner
    increases cash distributions to the limited partners, the
    general partner receives an increasingly higher percentage of
    the incremental cash distributions. A common arrangement
    provides that the general partner can reach a tier where it
    receives 50% of every incremental dollar paid to common and
    subordinated unit holders. These incentive distributions
    encourage the general partner to streamline costs, increase
    capital expenditures and acquire assets in order to increase the
    partnership&#146;s cash flow and raise the quarterly cash
    distribution in order to reach higher tiers. Such results
    benefit all security holders of the MLP.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To qualify as a partnership for U.S.&#160;federal income tax
    purposes, an MLP must receive at least 90% of its income from
    qualifying sources such as interest, dividends, real estate
    rents, gain from the sale or disposition of real property,
    income and gain from mineral or natural resources activities,
    income and gain from the transportation or storage of certain
    fuels, gain from the sale or disposition of a capital asset held
    for the production of income described in the foregoing and, in
    certain circumstances, income and gain from commodities or
    futures, forwards and options with respect to commodities.
    Mineral or natural resources activities include exploration,
    development, production, mining, refining, marketing and
    transportation (including pipelines), of oil and gas, minerals,
    geothermal energy, fertilizer, timber or industrial source
    carbon dioxide. Currently, most MLPs operate in the energy,
    natural resources or real estate sectors. Due to their
    partnership structure, MLPs generally do not pay income taxes.
    Thus, unlike investors in corporate securities, direct MLP
    investors are generally not subject to double taxation (i.e.
    corporate level tax and tax on corporate dividends). For more
    information on MLPs, see &#147;Investment Policies and
    Techniques&#160;&#151; Master Limited Partnership
    Interests&#148; in the SAI.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Canadian Royalty Trusts.</I>&#160;&#160;A Canadian royalty
    trust is a trust whose securities are listed on a Canadian stock
    exchange and which controls an underlying company whose business
    is the acquisition, exploitation, production and sale of oil and
    natural gas. These trusts generally pay out to unitholders the
    majority of the cash flow that they receive from the production
    and sale of underlying oil and natural gas reserves. The amount
    of distributions paid on a Canadian royalty trust&#146;s units
    will vary from time to time based on production levels,
    commodity prices, royalty rates and certain expenses, deductions
    and costs, as well as on the distribution payout ratio policy
    adopted. As a result of distributing the bulk of their cash flow
    to unitholders, the ability of a Canadian royalty trust to
    finance internal growth through exploration is limited.
    Therefore, Canadian royalty trusts typically grow through
    acquisition of additional oil and gas properties or producing
    companies with proven reserves of oil and gas, funded through
    the issuance of additional equity or, where the trust is able,
    additional debt. On October&#160;31, 2006, the Canadian Minister
    of Finance announced a Tax Fairness Plan for Canadians. A
    principal component of the plan involved changing the taxation
    rules governing income trusts. The Minister of Finance announced
    a tax rate on trust distributions that would start at 34%
    initially, and then drop to 31.5% by 2011. As a result, Canadian
    income trusts are now taxed as regular Canadian corporations and
    are now subject to &#147;double taxation&#148; at both the
    corporate level and on the income distributed to investors. In
    response to this change, most Canadian royalty trusts converted
    to corporations and have reduced their dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>REITs.</I>&#160;&#160;In pursuing its investment strategy,
    the Trust may invest in equity interests in REITs. REITs possess
    certain risks which differ from an investment in common stocks.
    REITs are financial vehicles that pool investor&#146;s capital
    to purchase or finance real estate. REITs may concentrate their
    investments in specific geographic areas or in specific property
    types, i.e., hotels, shopping malls, residential complexes and
    office buildings. The market value of REIT shares and the
    ability of the REITs to distribute income may be adversely
    affected by several factors, including rising interest rates,
    changes in the national, state and local economic climate and
    real estate conditions, perceptions of prospective tenants of
    the safety, convenience and attractiveness of the properties,
    the ability of the owners to provide adequate management,
    maintenance and insurance, the cost of complying with the
    Americans with Disabilities Act, increased competition from new
    properties, the impact of present or future environmental
    legislation and compliance with environmental laws, changes in
    real estate taxes and other operating expenses,
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    adverse changes in governmental rules and fiscal policies,
    adverse changes in zoning laws, and other factors beyond the
    control of the issuers of the REITs. In addition, distributions
    received by the Trust from REITs may consist of dividends,
    capital gains,
    <FONT style="white-space: nowrap">and/or</FONT>
    return of capital. As REITs generally pay a higher rate of
    dividends (on a pre-tax basis) than operating companies, to the
    extent application of the Trust&#146;s investment strategy
    results in the Trust investing in REIT shares, the percentage of
    the Trust&#146;s dividend income received from REIT shares will
    likely exceed the percentage of the Trust&#146;s portfolio which
    is comprised of REIT shares. Generally, dividends received by
    the Trust from REIT shares and distributed to the Trust&#146;s
    shareholders will not constitute &#147;qualified dividend
    income&#148; eligible for the reduced tax rate applicable to
    qualified dividend income; therefore, the tax rate applicable to
    that portion of the dividend income attributable to REIT shares
    held by the Trust that shareholders of the Trust receive will be
    taxed at a higher rate than dividends eligible for the reduced
    tax rate applicable to qualified dividend income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Lower Grade Debt Securities.</I>&#160;&#160;The Trust may
    invest up to 10% of its total assets in debt securities rated
    below investment grade (which are commonly referred to as
    &#147;high yield securities&#148; or &#147;junk bonds&#148;),
    such as those rated Ba or lower by Moody&#146;s Investors
    Service, Inc. (&#147;Moody&#146;s&#148;) and BB or lower by
    Standard&#160;&#038; Poor&#146;s Ratings Group, a division of
    The McGraw-Hill Companies, Inc. (&#147;S&#038;P&#148;), or by
    Fitch Ratings (&#147;Fitch&#148;), or debt securities comparably
    rated by other rating agencies, or in unrated debt securities
    determined by the Advisors to be of comparable quality. Debt
    securities rated Ba by Moody&#146;s are judged to have
    speculative elements, their future cannot be considered as well
    assured and often the protection of interest and principal
    payments may be very moderate. Debt securities rated BB by
    S&#038;P or Fitch are regarded as having predominantly
    speculative characteristics and, while such obligations have
    less near-term vulnerability to default than other speculative
    grade debt, they face major ongoing uncertainties or exposure to
    adverse business, financial or economic conditions which could
    lead to inadequate capacity to meet timely interest and
    principal payments. Debt securities rated C are regarded as
    having extremely poor prospects of ever attaining any real
    investment standing. Debt securities rated D are in default and
    the payment of interest
    <FONT style="white-space: nowrap">and/or</FONT>
    repayment of principal is in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Lower grade debt securities, though high yielding, are
    characterized by high risk. They may be subject to certain risks
    with respect to the issuing entity and to greater market
    fluctuations than certain lower yielding, higher rated debt
    securities. The secondary market for lower grade debt securities
    may be less liquid than that of higher rated debt securities.
    Adverse conditions could make it difficult at times for the
    Trust to sell certain debt securities or could result in lower
    prices than those used in calculating the Trust&#146;s net asset
    value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The prices of debt securities generally are inversely related to
    interest rate changes; however, the price volatility caused by
    fluctuating interest rates of securities also is inversely
    related to the coupon of such securities. Accordingly, lower
    grade debt securities may be relatively less sensitive to
    interest rate changes than higher quality debt securities of
    comparable maturity because of their higher coupon. This higher
    coupon is what the investor receives in return for bearing
    greater credit risk. The higher credit risk associated with
    lower grade debt securities potentially can have a greater
    effect on the value of such debt securities than may be the case
    with higher quality issues of comparable maturity and may be a
    substantial factor in the Trust&#146;s relative share price
    volatility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Lower grade debt securities may be particularly susceptible to
    economic downturns. It is likely that an economic recession
    could disrupt severely the market for such debt securities and
    may have an adverse impact on the value of such debt securities.
    In addition, it is likely that any such economic downturn could
    adversely affect the ability of the issuers of such debt
    securities to repay principal and pay interest thereon and
    increase the incidence of default for such debt securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The ratings of Moody&#146;s, S&#038;P, Fitch and other rating
    agencies represent their opinions as to the quality of the
    obligations which they undertake to rate. Ratings are relative
    and subjective and, although ratings may be useful in evaluating
    the safety of interest and principal payments, they do not
    evaluate the market value risk of such obligations. Although
    these ratings may be an initial criterion for selection of
    portfolio investments, the Advisors also will independently
    evaluate these debt securities and the ability of the issuers of
    such debt securities to pay interest and principal. To the
    extent that the Trust invests in lower grade debt securities
    that have not been rated by a rating agency, the Trust&#146;s
    ability to achieve its investment objective will be more
    dependent on the Advisors&#146; credit analysis than would be
    the case when the Trust invests in rated debt securities.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Strategic Transactions.</I>&#160;&#160;In addition to the
    option strategy discussed above, the Trust may, but is not
    required to, use the Strategic Transactions described below in
    an effort to hedge all or a portion of the portfolio or to seek
    to enhance total return. These Strategic Transactions are
    generally accepted under modern portfolio management and are
    regularly used by many mutual funds, closed-end funds and other
    institutional investors. Although the Advisors seek to use
    Strategic Transactions to further the Trust&#146;s investment
    objective, no assurance can be given that they will be
    successful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may purchase and sell futures contracts, options on
    futures contracts and forward foreign currency contracts, may
    enter into various interest rate, credit and other derivative
    transactions and may engage in swaps. The Trust also may
    purchase derivative instruments that combine features of these
    instruments. Collectively, all of the above are referred to as
    &#147;Strategic Transactions.&#148; The Trust generally seeks to
    use Strategic Transactions as a portfolio management or hedging
    technique to seek to protect against possible adverse changes in
    the market value of securities held in or to be purchased for
    the Trust&#146;s portfolio, protect the value of the
    Trust&#146;s portfolio, facilitate the sale of certain
    securities for investment purposes, or establish positions in
    the derivatives markets as a temporary substitute for purchasing
    or selling particular securities. The Trust may use Strategic
    Transactions to enhance potential gain, although the Trust will
    commit variation margin for Strategic Transactions that involve
    futures contracts only in accordance with the rules of the
    Commodity Futures Trading Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Strategic Transactions have risks, including the imperfect
    correlation between the value of such instruments and the
    underlying assets, the possible default of the other party to
    the transaction or illiquidity of the derivative instruments.
    Furthermore, the ability to successfully use Strategic
    Transactions depends on the Advisors&#146; ability to predict
    pertinent market movements, which cannot be assured. Thus, the
    use of Strategic Transactions may result in losses greater than
    if they had not been used, may require the Trust to sell or
    purchase portfolio securities at inopportune times or for prices
    other than current market values, may limit the amount of
    appreciation the Trust can realize on an investment, or may
    cause the Trust to hold a security that it might otherwise sell.
    Additionally, amounts paid by the Trust as premiums and cash or
    other assets held in margin accounts with respect to Strategic
    Transactions are not otherwise available to the Trust for
    investment purposes. A more complete discussion of Strategic
    Transactions and their risks is contained in the Trust&#146;s
    SAI under the heading &#147;Investment Policies and
    Techniques&#160;&#151; Strategic Transactions and Risk
    Management.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Other Investment Companies.</I>&#160;&#160;The Trust may
    invest up to 10% of its total assets in securities of other
    open- or closed-end investment companies that invest primarily
    in Utilities or Infrastructure securities of the types in which
    the Trust may invest directly. The Trust generally expects to
    invest in other investment companies either during periods when
    it has large amounts of uninvested cash, such as the period
    shortly after the Trust receives the proceeds of the offering of
    its common shares, or during periods when there is a shortage of
    attractive Utilities and Infrastructure securities available in
    the market. As a shareholder in an investment company, the Trust
    will bear its ratable share of that investment company&#146;s
    expenses, and will remain subject to payment of the Trust&#146;s
    advisory and other fees and expenses with respect to assets so
    invested. Holders of common shares will therefore be subject to
    duplicative expenses to the extent the Trust invests in other
    investment companies. The Advisors will take expenses into
    account when evaluating the investment merits of an investment
    in an investment company relative to available Utilities and
    Infrastructure securities investments. In addition, the
    securities of other investment companies may be leveraged and
    will therefore be subject to leverage risks. As described in
    this prospectus in the section entitled &#147;Risks,&#148; the
    net asset value and market value of leveraged shares will be
    more volatile and the yield to shareholders will tend to
    fluctuate more than the yield generated by unleveraged shares.
    Investment companies may have investment policies that differ
    from those of the Trust. In addition, to the extent the Trust
    invests in other investment companies, the Trust will be
    dependent upon the investment and research abilities of persons
    other than the Advisors. The Trust treats its investments in
    such open- or closed-end investment companies as investments in
    Utilities and Infrastructure securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in ETFs, which are investment companies
    that aim to track or replicate a desired index, such as a
    sector, market or global segment. ETFs are typically passively
    managed and their shares are traded on a national exchange or
    The NASDAQ Stock Market, Inc. (&#147;NASDAQ&#148;). ETFs do not
    sell individual shares directly to investors and only issue
    their shares in large blocks known as &#147;creation
    units.&#148; The investor purchasing a creation unit may sell
    the individual shares on a secondary market. Therefore, the
    liquidity of ETFs depends on the adequacy of the secondary
    market. There can be no assurance that an ETF&#146;s investment
    objective will be achieved, as ETFs
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    based on an index may not replicate and maintain exactly the
    composition and relative weightings of securities in the index.
    ETFs are subject to the risks of investing in the underlying
    securities. The Trust, as a holder of the securities of the ETF,
    will bear its pro rata portion of the ETF&#146;s expenses,
    including advisory fees. These expenses are in addition to the
    direct expenses of the Trust&#146;s own operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Securities Lending.</I>&#160;&#160;The Trust may lend
    portfolio securities with a value not exceeding
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of its total assets or the limit prescribed by applicable law to
    banks, brokers and other financial institutions. In return, the
    Trust receives collateral in cash or securities issued or
    guaranteed by the U.S.&#160;government or irrevocable letters of
    credit issued by a bank (other than a borrower of the
    Trust&#146;s portfolio securities or any affiliate of such
    borrower), which qualifies as a custodian bank for an investment
    company under the Investment Company Act, which collateral will
    be maintained at all times in an amount equal to at least 100%
    of the current market value of the loaned securities. The
    Advisor may instruct the lending agent (as defined below) to
    terminate loans and recall securities so that the securities may
    be voted by the Trust if required by the Advisor&#146;s proxy
    voting guidelines. See &#147;Proxy Voting Policies&#148; below.
    Such notice shall be provided in advance such that a period of
    time equal to no less than the normal settlement period for the
    securities in question prior to the record date for the proxy
    vote or other corporate entitlement is provided.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust receives the equivalent of any income it would have
    received on the loaned securities. Where the Trust receives
    securities as collateral, the Trust receives a fee for its loans
    from the borrower and does not receive the income on the
    collateral. Where the Trust receives cash collateral, it may
    invest such collateral and retain the amount earned, net of any
    amount rebated to the borrower. As a result, the Trust&#146;s
    yield may increase. Loans of securities are terminable at any
    time and the borrower, after notice, is required to return
    borrowed securities within the standard time period for
    settlement of securities transactions. The Trust is obligated to
    return the collateral to the borrower upon the return of the
    loaned securities. The Trust could suffer a loss in the event
    the Trust must return the cash collateral and there are losses
    on investments made with the cash collateral. In the event the
    borrower defaults on any of its obligations with respect to a
    securities loan, the Trust could suffer a loss where the value
    of the collateral is below the market value of the borrowed
    securities plus any other receivables from the borrower along
    with any transaction costs to repurchase the securities. The
    Trust could also experience delays and costs in gaining access
    to the collateral. The Trust may pay reasonable finder&#146;s,
    lending agent, administrative and custodial fees in connection
    with its loans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has received an exemptive order from the Commission
    permitting it to lend portfolio securities to affiliates of the
    Trust and to retain an affiliate of the Trust as lending agent.
    Pursuant to that order, the Trust has retained an affiliated
    entity of the Advisor as the securities lending agent (the
    &#147;lending agent&#148;) for a fee, including a fee based on a
    share of the returns on investment of cash collateral. In
    connection with securities lending activities, the lending agent
    may, upon the advice of the Advisor and on behalf of the Trust,
    invest cash collateral received by the Trust for such loans,
    among other things, in a private investment company managed by
    the lending agent or in registered money market funds advised by
    the Advisor or its affiliates. Pursuant to the same order, the
    Trust may invest its uninvested cash in registered money market
    funds advised by the Advisor or its affiliates, or in a private
    investment company managed by the lending agent. If the Trust
    acquires shares in either the private investment company or an
    affiliated money market fund, shareholders would bear both their
    proportionate share of the Trust&#146;s expenses and,
    indirectly, the expenses of such other entities. However, in
    accordance with the exemptive order, the investment advisor to
    the private investment company will not charge any advisory fees
    with respect to shares purchased by the Trust. Such shares also
    will not be subject to a sales load, redemption fee,
    distribution fee or service fee, or in the case of the shares of
    an affiliated money market fund, the payment of any such sales
    load, redemption fee, distribution fee or service fee will be
    offset by the Advisor&#146;s waiver of a portion of its advisory
    fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust would continue to accrue the equivalent of the same
    interest or other income on loaned securities that it would have
    received had the securities not been on loan, and would also
    earn income on investments made with any cash collateral for
    such loans. Any cash collateral received by the Trust in
    connection with such loans may be invested in a broad range of
    high quality, U.S.&#160;dollar-denominated money market
    instruments that meet
    <FONT style="white-space: nowrap">Rule&#160;2a-7</FONT>
    restrictions for money market funds.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock Investment Management, LLC,&#160;a Sub-Advisor of the
    Trust, acts as securities lending agent for the Trust and will
    be paid a fee for the provision of these services, including
    advisory services with respect to the collateral of the
    Trust&#146;s securities lending program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Short-Term Debt Securities; Temporary Defensive Position;
    <FONT style="white-space: nowrap">Invest-Up</FONT>
    Period.</I>&#160;&#160;During the period in which the net
    proceeds of this offering of common shares are being invested or
    during periods in which the Advisors determine that they are
    temporarily unable to follow the Trust&#146;s investment
    strategy or that it is impractical to do so, the Trust may
    deviate from its investment strategy and invest all or any
    portion of its assets in cash, cash equivalents or short-term
    debt securities that may be either tax-exempt or taxable. See
    &#147;Investment Policies and Techniques&#160;&#151;  Cash
    Equivalents and Short-Term Debt Securities&#148; in the SAI. The
    Advisors&#146; determination that they are temporarily unable to
    follow the Trust&#146;s investment strategy or that it is
    impractical to do so will generally occur only in situations in
    which a market disruption event has occurred and where trading
    in the securities selected through application of the
    Trust&#146;s investment strategy is extremely limited or absent
    or in connection with the termination of the Trust.
</DIV>

<A name='Y93113106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RISKS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The net asset value of, and dividends paid on, the common shares
    will fluctuate with and be affected by, among other things, the
    risks more fully described below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">No
    Operating History</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is a newly organized, non-diversified, closed-end
    management investment company with no operating history. As a
    result, prospective investors have no track record or history on
    which to base their investment decision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    and Market Discount Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An investment in the Trust&#146;s common shares is subject to
    investment risk, including the possible loss of the entire
    amount that you invest. Your investment in common shares
    represents an indirect investment in the securities owned by the
    Trust, a majority of which are traded on a securities exchange
    or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets. The value of these securities, like other market
    investments, may move up or down, sometimes rapidly and
    unpredictably. As with any stock, the price of the Trust&#146;s
    common shares will fluctuate with market conditions and other
    factors. If shares are sold, the price received may be more or
    less than the original investment. The value of your investment
    in the Trust will be reduced immediately following the initial
    offering by the amount of the sales load and the amount of the
    organizational and offering expenses paid by the Trust. Common
    shares are designed for long-term investors and should not be
    treated as trading vehicles. Shares of closed-end management
    investment companies frequently trade at a discount from their
    net asset value, which could be significant. This risk is
    separate and distinct from the risk that the Trust&#146;s net
    asset value could decrease as a result of its investment
    activities. At any point in time, including immediately after
    the completion of this offering, an investment in the
    Trust&#146;s common shares may be worth substantially less than
    the original amount invested, even after taking into account
    distributions paid by the Trust. This risk may be greater for
    investors who sell their common shares in a relatively short
    period of time after completion of the initial offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust will have exposure to common stocks. Although common
    stocks have historically generated higher average total returns
    than fixed-income securities over the long term, common stocks
    also have experienced significantly more volatility in those
    returns and may significantly under-perform relative to fixed
    income securities during certain periods. An adverse event, such
    as an unfavorable earnings report, may depress the value of a
    particular common stock held by the Trust. Also, the price of
    common stocks is sensitive to general movements in the stock
    market and a drop in the stock market may depress the price of
    common stocks to which the Trust has exposure. Common stock
    prices fluctuate for several reasons, including changes in
    investors&#146; perceptions of the financial condition of an
    issuer or the general condition of the relevant stock market, or
    when political or economic events affecting the issuers occur.
    In addition, common stock prices may be particularly sensitive
    to rising interest rates, as the cost of capital rises and
    borrowing costs increase.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Concentration
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s investments will be concentrated in issuers in
    the Utilities and Infrastructure business segments. Because the
    Trust will be concentrated in those business segments, it may be
    subject to more risks than if it were broadly diversified over
    numerous industries and sectors of the economy. General changes
    in market sentiment towards Utilities or Infrastructure
    companies may adversely affect the Trust, and the performance of
    Utilities and Infrastructure issuers may lag behind the broader
    market as a whole. Also, the Trust&#146;s concentration in the
    Utilities and Infrastructure business segments may subject the
    Trust to a variety risks associated with those business segments.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks of
    Investing in Utilities and Infrastructure Issuers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investments in issuers in the Utilities and Infrastructure
    business segments are subject to certain risks, including the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Utilities Companies Risk.</I>&#160;&#160;A variety of factors
    may adversely affect the business or operations of Utilities
    issuers, including: high interest costs in connection with
    capital construction and improvement programs; governmental
    regulation of rates charged to customers (including the
    potential that costs incurred by the utility change more rapidly
    than the rate the utility is permitted to charge its customers);
    costs associated with compliance with and changes in
    environmental and other regulations; effects of economic
    slowdowns and surplus capacity; increased competition from other
    providers of Utilities services; inexperience with and potential
    losses resulting from a developing deregulatory environment;
    costs associated with reduced availability of certain types of
    fuel; the effects of energy conservation policies; effects of a
    national energy policy; technological innovations; potential
    impact of terrorist activities; the impact of natural or
    man-made disasters; regulation by various governmental
    authorities, including the imposition of special tariffs; and
    changes in tax laws, regulatory policies and accounting
    standards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Infrastructure Companies Risk.</I>&#160;&#160;Infrastructure
    issuers may be susceptible to a variety of factors that may
    adversely affect their business and operations, including high
    interest costs in connection with capital construction programs;
    high leverage; costs associated with environmental and other
    regulations; surplus capacity costs; and reduced investment in
    public and private infrastructure projects. A slowdown in new
    infrastructure projects in developing or developed markets may
    constrain the abilities of Infrastructure issuers to grow in
    global markets. Other developments, such as significant changes
    in population levels or changes in the urbanization and
    industrialization of developing countries, may reduce demand for
    products or services provided by Infrastructure issuers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Technological Risk.</I>&#160;&#160;Technological changes in
    the way a service or product is delivered may render existing
    technologies obsolete. Although this risk may be considered low
    with respect to assets of Utilities and Infrastructure companies
    given the large fixed costs involved in developing such assets
    and the fact that many utility and infrastructure technologies
    are well established, any technological change that occurs over
    the medium term could threaten the profitability of a Utilities
    or infrastructure company. Utility and infrastructure assets
    have very few alternative uses should they become obsolete.
    Communications utilities may be particularly sensitive to these
    risks, as telecommunications products and services also may be
    subject to rapid obsolescence resulting from changes in consumer
    tastes, intense competition and strong market reactions to
    technological development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Developing Industries Risk.</I>&#160;&#160;Some Utilities or
    Infrastructure companies are focused on developing new
    technologies and are strongly influenced by technological
    changes. Product development efforts by Utilities and
    Infrastructure companies may not result in viable commercial
    products. Utilities and Infrastructure companies may bear high
    research and development costs, which can limit their ability to
    maintain operations during periods of organizational growth or
    instability. Some Utilities and Infrastructure issuers may be in
    the early stages of operations and may have limited operating
    histories and smaller market capitalizations on average than
    companies in other sectors. As a result of these and other
    factors, the value of investments in such Utilities and
    Infrastructure issuers may be considerably more volatile than
    that in more established segments of the economy.
</DIV>
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    <I>Regional Risk.</I>&#160;&#160;Should an event that impairs
    assets or facilities occur in a region where a Utilities or
    Infrastructure issuer operates, the performance of such
    Utilities or Infrastructure company may be adversely affected.
    As many infrastructure assets are not moveable, such an event
    may have enduring effects on the Utilities or Infrastructure
    company that are difficult to mitigate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Strategic Asset Risk.</I>&#160;&#160;Utilities and
    Infrastructure companies may control significant strategic
    assets. Strategic assets are assets that have a national or
    regional profile, and may have monopolistic characteristics.
    Given the national or regional profile
    <FONT style="white-space: nowrap">and/or</FONT> their
    irreplaceable nature, strategic assets may constitute a higher
    risk target for terrorist acts or adverse political actions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Environmental Risk.</I>&#160;&#160;Utilities and
    Infrastructure companies can have substantial environmental
    impacts. Ordinary operations or operational accidents may cause
    major environmental damage, which could cause Utilities and
    Infrastructure companies significant financial distress. For
    example, an accidental release from wells or gathering pipelines
    could subject them to substantial liabilities for environmental
    cleanup and restoration costs, claims made by neighboring
    landowners and other third parties for personal injury and
    property damage, and fines or penalties for related violations
    of environmental laws or regulations. Utilities and
    Infrastructure companies may not be able to recover these costs
    from insurance. Environmental regulations to which Utilities and
    Infrastructure companies may be subject include, for example:
    (i)&#160;the federal Clean Air Act and comparable state laws and
    regulations that impose obligations related to air emissions,
    (ii)&#160;the federal Clean Water Act and comparable state laws
    and regulations that impose obligations related to discharges of
    pollutants into regulated bodies of water, (iii)&#160;the
    federal Resource Conservation and Recovery Act
    (&#147;RCRA&#148;) and comparable state laws and regulations
    that impose requirements for the handling and disposal of waste
    from facilities; and (iv)&#160;the federal Comprehensive
    Environmental Response, Compensation and Liability Act of 1980
    (&#147;CERCLA&#148;), also known as &#147;Superfund,&#148; and
    comparable state laws and regulations that regulate the cleanup
    of hazardous substances. Failure to comply with these laws and
    regulations may trigger a variety of administrative, civil and
    criminal enforcement measures, including the assessment of
    monetary penalties, the imposition of remedial requirements, and
    the issuance of orders enjoining future operations. Certain
    environmental statutes, including RCRA, CERCLA, the federal Oil
    Pollution Act and analogous state laws and regulations, impose
    strict, joint and several liability for costs required to clean
    up and restore sites where hazardous substances have been
    disposed of or otherwise released. Voluntary initiatives and
    mandatory controls have been adopted or are being discussed both
    in the United States and worldwide to reduce emissions of
    &#147;greenhouse gases&#148; such as carbon dioxide, a
    by-product of burning fossil fuels, and methane, the major
    constituent of natural gas, which many scientists and
    policymakers believe contribute to global climate change. These
    measures and future measures could result in increased costs to
    certain companies in which the Trust may invest to operate and
    maintain facilities and administer and manage a greenhouse gas
    emissions program and may reduce demand for fuels that generate
    greenhouse gases and that are managed or produced by companies
    in which the Trust may invest. In the wake of a Supreme Court
    decision holding that the Environmental Protection Agency
    (&#147;EPA&#148;) has some legal authority to deal with climate
    change under the Clean Air Act, the EPA and the Department of
    Transportation jointly wrote regulations to cut gasoline use and
    control greenhouse gas emissions from cars and trucks. These
    measures, and other programs addressing greenhouse gas
    emissions, could reduce demand for energy or raise prices, which
    may adversely affect the total return of certain of the
    Trust&#146;s investments. Community and environmental groups may
    protest the development or operation of assets or facilities of
    Utilities and Infrastructure companies, and these protests may
    induce government action to the detriment of Utilities and
    Infrastructure companies
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Political and Expropriation Risk.</I>&#160;&#160;Governments
    may attempt to influence the operations, revenue, profitability
    or contractual relationships of Utilities and Infrastructure
    issuers or expropriate their assets. The public interest aspect
    of the products and services provided by Utilities and
    Infrastructure companies means political oversight will remain
    pervasive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Operational Risk.</I>&#160;&#160;The long-term profitability
    of Utilities and Infrastructure companies is partly dependent on
    the efficient operation and maintenance of their assets and
    facilities. Utilities and Infrastructure issuers may be subject
    to service interruptions due to environmental disasters,
    operational accidents or terrorist activities, which may impair
    their ability to maintain payments of dividends or interest to
    investors. The
</DIV>
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    destruction or loss of an asset or facility may have a major
    adverse impact on a Utilities or Infrastructure issuer. Failure
    by the Utilities or Infrastructure issuer to operate and
    maintain their assets and facilities appropriately or to carry
    appropriate, enforceable insurance could lead to significant
    losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Regulatory Risk.</I>&#160;&#160;Many Utilities and
    Infrastructure companies are subject to significant federal,
    state and local government regulation, which may include how
    facilities are constructed, maintained and operated,
    environmental and safety controls and the prices they may charge
    for the products and services they provide. Various governmental
    authorities have the power to enforce compliance with these
    regulations and the permits issued under them, and violators are
    subject to administrative, civil and criminal penalties,
    including civil fines, injunctions or both. There are
    substantial differences among the regulatory practices and
    policies of various jurisdictions, and any given regulatory
    agency may make major shifts in policy from time to time.
    Stricter laws, regulations or enforcement policies could be
    enacted in the future which would likely increase compliance
    costs and may adversely affect the operations and financial
    performance of Utilities and Infrastructure issuers. Regulators
    that have the power to set or modify the prices Utilities and
    Infrastructure issuers can charge for their products or services
    can have a significant impact on the profitability of such
    Utilities and Infrastructure issuers. The returns on regulated
    assets or services are usually stable during regulated periods,
    but may be volatile during any period that rates are reset by
    the regulator. Utilities and Infrastructure companies may be
    adversely affected by additional regulatory requirements enacted
    in response to environmental disasters, which may impose
    additional costs or limit certain operations by such companies
    operating in various sectors. Foreign Utilities and
    Infrastructure companies are also subject to regulation,
    although such regulations may or may not be comparable to those
    in the United States. Foreign Utilities and Infrastructure
    companies may be more heavily regulated by their respective
    governments than utilities in the United States and, as in the
    United States, generally are required to seek government
    approval for rate increases. In addition, many foreign Utilities
    and Infrastructure companies use fuels that may cause more
    pollution than those used in the United States, which may
    require such utilities to invest in pollution control equipment
    to meet any proposed pollution restrictions. Foreign regulatory
    systems vary from country to country and may evolve in ways
    different from regulation in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Interest Rate Risk.</I>&#160;&#160;Due to the high costs of
    developing, constructing, operating and distributing
    infrastructure assets, many Utilities and Infrastructure
    companies are highly leveraged. As such, movements in the level
    of interest rates may affect the returns from these assets. The
    structure and nature of the debt is therefore an important
    element to consider in assessing the interest rate risk posed by
    Utilities and Infrastructure issuers. In particular, the type of
    facilities, maturity profile, rates being paid, fixed versus
    variable components and covenants in place (including how they
    impact returns to equity holders) are crucial factors in
    assessing any the degree of interest rate risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Inflation Risk.</I>&#160;&#160;Many Utility and
    Infrastructure companies may have fixed income streams and,
    therefore, be unable to increase their dividends during
    inflationary periods. The market value of Utility or
    Infrastructure companies may decline in value in times of higher
    inflation rates. The prices that a Utility or Infrastructure
    company is able to charge users of its assets may not always be
    linked to inflation. In this case, changes in the rate of
    inflation may affect the forecast profitability of the Utility
    or Infrastructure company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Supply and Demand Risk.</I>&#160;&#160;Utilities and
    Infrastructure companies may be subject to supply and demand
    fluctuations in the markets they serve which will be impacted by
    a wide range of factors. A decrease in the production of natural
    gas, natural gas liquids, crude oil, coal or other energy
    commodities, a decrease in the volume of such commodities
    available for transportation, mining, processing, storage or
    distribution, or a sustained decline in demand for such
    commodities, may adversely impact the financial performance of
    Utilities and Infrastructure companies. Factors affecting the
    volume of production of energy commodities and the volume of
    energy commodities available for transportation, storage,
    processing or distribution include depletion of resources;
    depressed commodity prices; catastrophic events; labor
    relations; increased environmental or other governmental
    regulation; equipment malfunctions and maintenance difficulties;
    import volumes; international politics; policies of the
    Organization of Petroleum Exporting Countries; and increased
    competition from alternative energy sources. Alternatively, a
    decline in demand for energy commodities could result from
    factors such as adverse economic conditions (especially in key
    energy-consuming countries); increased taxation; weather
    conditions; increased environmental or other governmental
    regulation; increased
</DIV>
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    fuel economy; increased energy conservation or use of
    alternative energy sources; legislation intended to promote the
    use of alternative energy sources; or increased commodity prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Customer Risk.</I>&#160;&#160;The revenue of many Utility and
    Infrastructure companies may be impacted by the number of users
    who use the products or services produced by the Utility or
    Infrastructure company. A significant decrease in the number of
    users may negatively impact the profitability of a Utility or
    Infrastructure company. Infrastructure companies can have a
    narrow customer base. Should these customers or counterparties
    fail to pay their contractual obligations, significant revenues
    could cease and not be replaceable. This would affect the
    profitability of the infrastructure company and the value of any
    securities or other instruments it has issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Project and Financing Risk.</I>&#160;&#160;To the extent the
    Trust invests in Utility and Infrastructure companies which are
    dependent to a significant extent on new infrastructure
    projects, the Trust may be exposed to the risk that the project
    will not be completed within budget, within the agreed time
    frame or to agreed specifications. From time to time,
    infrastructure companies may encounter difficulties in obtaining
    financing for construction programs during inflationary periods.
    Issuers experiencing difficulties in financing construction
    programs may also experience lower profitability, which can
    result in reduced income to the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Weather and Natural Disasters Risk.</I>&#160;&#160;Weather
    plays a role in the seasonality of some Utilities and
    Infrastructure companies&#146; cash flows. Although most
    Utilities and Infrastructure companies that are subject to
    weather risk can reasonably predict seasonal weather demand
    based on normal weather patterns, extreme weather conditions
    demonstrate that no amount of preparation can protect an
    Utilities or Infrastructure company from the unpredictability of
    the weather. Natural disaster risks, such as earthquakes, flood,
    lightning, hurricanes and wind, are risks facing certain Utility
    and Infrastructure companies. The damage done by extreme weather
    or natural disasters also may serve to increase many Utilities
    and Infrastructure companies insurance premiums.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>2012 U.S.&#160;Federal Budget Risk.</I>&#160;&#160;The
    proposed U.S.&#160;federal budget for fiscal year 2012 calls for
    the elimination of approximately $46&#160;billion in tax
    incentives used by certain Utilities and Infrastructure
    companies and the imposition of new fees on certain energy
    producers. The elimination of such tax incentives and imposition
    of such fees could adversely affect Utilities and Infrastructure
    companies in which the Trust invests
    <FONT style="white-space: nowrap">and/or</FONT> the
    Utilities and Infrastructure business segments generally.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Securities Risk and Emerging Markets Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investing in
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    involves certain risks not involved in domestic investments,
    including, but not limited to: fluctuations in foreign exchange
    rates; future foreign economic, financial, political and social
    developments; different legal systems; the possible imposition
    of exchange controls or other foreign governmental laws or
    restrictions, including expropriation; lower trading volume;
    much greater price volatility and illiquidity of certain
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    markets; different trading and settlement practices; less
    governmental supervision; changes in currency exchange rates;
    high and volatile rates of inflation; fluctuating interest
    rates; less publicly available information; and different
    accounting, auditing and financial recordkeeping standards and
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain countries in which the Trust may invest, especially
    emerging market countries, historically have experienced, and
    may continue to experience, high rates of inflation, high
    interest rates, exchange rate fluctuations, large amounts of
    external debt, balance of payments and trade difficulties and
    extreme poverty and unemployment. Many of these countries are
    also characterized by political uncertainty and instability. The
    cost of servicing external debt will generally be adversely
    affected by rising international interest rates because many
    external debt obligations bear interest at rates that are
    adjusted based upon international interest rates. In addition,
    with respect to certain foreign countries, there is a risk of:
    the possibility of expropriation or nationalization of assets;
    confiscatory taxation; difficulty in obtaining or enforcing a
    court judgment; restrictions on currency repatriation; economic,
    political or social instability; and diplomatic developments
    that could affect investments in those countries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Trust may invest in securities denominated or quoted
    in currencies other than the U.S.&#160;dollar, changes in
    foreign currency exchange rates may affect the value of
    securities in the Trust and the unrealized
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    appreciation or depreciation of investments. Currencies of
    certain countries may be volatile and therefore may affect the
    value of securities denominated in such currencies, which means
    that the Trust&#146;s net asset value or current income could
    decline as a result of changes in the exchange rates between
    foreign currencies and the U.S.&#160;dollar. Certain investments
    in
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    also may be subject to foreign withholding taxes. Dividend
    income from
    <FONT style="white-space: nowrap">non-U.S.&#160;corporations</FONT>
    may not be eligible for the reduced U.S.&#160;income tax rate
    currently available for qualified dividend income. These risks
    often are heightened for investments in smaller, emerging
    capital markets. In addition, individual foreign economies may
    differ favorably or unfavorably from the U.S.&#160;economy in
    such respects as: growth of gross domestic product; rates of
    inflation; capital reinvestment; resources; self-sufficiency;
    and balance of payments position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investing in securities of issuers based in underdeveloped
    emerging markets entails all of the risks of investing in
    securities of
    <FONT style="white-space: nowrap">non-U.S.&#160;issuers</FONT>
    to a heightened degree. &#147;Emerging market countries&#148;
    generally include every nation in the world except developed
    countries, that is the United States, Canada, Japan, Australia,
    New Zealand and most countries located in Western Europe. These
    heightened risks include: greater risks of expropriation,
    confiscatory taxation, nationalization, and less social,
    political and economic stability; the smaller size of the market
    for such securities and a lower volume of trading, resulting in
    lack of liquidity and an increase in price volatility; and
    certain national policies that may restrict the Trust&#146;s
    investment opportunities including restrictions on investing in
    issuers or industries deemed sensitive to relevant national
    interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a result of these potential risks, the Advisors may determine
    that, notwithstanding otherwise favorable investment criteria,
    it may not be practicable or appropriate to invest in a
    particular country. The Trust may invest in countries in which
    foreign investors, including the Advisors, have had no or
    limited prior experience.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Foreign
    Currency Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Trust may invest in securities denominated or quoted
    in currencies other than the U.S.&#160;dollar, changes in
    foreign currency exchange rates may affect the value of
    securities owned by the Trust, the unrealized appreciation or
    depreciation of investments and gains on and income from
    investments. Currencies of certain countries may be volatile and
    therefore may affect the value of securities denominated in such
    currencies, which means that the Trust&#146;s net asset value
    could decline as a result of changes in the exchange rates
    between foreign currencies and the U.S.&#160;dollar. These risks
    often are heightened for investments in emerging market
    countries. In addition, the Trust may enter into foreign
    currency transactions in an attempt to hedge its currency
    exposure or enhance its total return, which may further expose
    the Trust to the risks of foreign currency movements and other
    risks. The use of foreign currency transactions can result in
    the Trust incurring losses as a result of the imposition of
    exchange controls, suspension of settlements or the inability of
    the Trust to deliver or receive a specified currency.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Small and
    Mid-Capitalization Stock Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in companies with small, medium and large
    capitalizations. Smaller and medium capitalization company
    stocks can be more volatile than, and perform differently from,
    larger capitalization company stocks. There may be less trading
    in a smaller or medium capitalization company&#146;s stock,
    which means that buy and sell transactions in that stock could
    have a larger impact on the stock&#146;s price than is the case
    with larger company stocks. Smaller and medium capitalization
    companies may have fewer business lines; changes in any one line
    of business, therefore, may have a greater impact on a smaller
    or medium capitalization company&#146;s stock price than is the
    case for a larger company. The Trust may need a considerable
    amount of time to purchase or sell its positions in these
    securities. In addition, smaller or medium capitalization
    company stocks may not be well known to the investing public.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In some circumstances, investments may be relatively illiquid
    making it difficult to acquire or dispose of them at the prices
    quoted on relevant exchanges or at all. Accordingly, the
    Trust&#146;s ability to respond to market movements may be
    impaired and the Trust may experience adverse price movements
    upon liquidation of its investments. Settlement of transactions
    may be subject to delay and administrative uncertainties.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">MLP
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An investment in MLP units involves some risks that differ from
    an investment in the common stock of a corporation. As compared
    to common stockholders of a corporation, holders of MLP units
    have more limited control and limited rights to vote on matters
    affecting the partnership. In addition, there are certain tax
    risks associated with an investment in MLP units and conflicts
    of interest may exist between common unit holders and the
    general partner, including those arising from incentive
    distribution payments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Much of the benefit the Trust derives from its investment in
    equity securities of MLPs is a result of MLPs generally being
    treated as partnerships for U.S.&#160;federal income tax
    purposes. Partnerships do not pay U.S.&#160;federal income tax
    at the partnership level. Rather, each partner of a partnership,
    in computing its U.S.&#160;federal income tax liability, will
    include its allocable share of the partnership&#146;s income,
    gains, losses, deductions and expenses. A change in current tax
    law, or a change in the business of a given MLP, could result in
    an MLP being treated as a corporation for U.S.&#160;federal
    income tax purposes, which would result in such MLP being
    required to pay U.S.&#160;federal income tax on its taxable
    income. The classification of an MLP as a corporation for
    U.S.&#160;federal income tax purposes would have the effect of
    reducing the amount of cash available for distribution by the
    MLP and causing any such distributions received by the Trust to
    be taxed as dividend income to the extent of the MLP&#146;s
    current or accumulated earnings and profits. Thus, if any of the
    MLPs owned by the Trust were treated as corporations for
    U.S.&#160;federal income tax purposes, the after-tax return to
    the Trust with respect to its investment in such MLPs would be
    materially reduced, which could cause a decline in the value of
    the common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the extent that the Trust invests in the equity securities of
    an MLP, the Trust will be a partner in such MLP. Accordingly,
    the Trust will be required to include in its taxable income the
    Trust&#146;s allocable share of the income, gains, losses,
    deductions and expenses recognized by each such MLP, regardless
    of whether the MLP distributes cash to the Trust. Historically,
    MLPs have been able to offset a significant portion of their
    income with tax deductions. The Trust will incur a current tax
    liability on its allocable share of an MLP&#146;s income and
    gains that is not offset by the MLP&#146;s tax deductions,
    losses and credits, or its net operating loss carryforwards, if
    any. The portion, if any, of a distribution received by the
    Trust from an MLP that is offset by the MLP&#146;s tax
    deductions, losses or credits is essentially treated as a return
    of capital. However, those distributions will reduce the
    Trust&#146;s adjusted tax basis in the equity securities of the
    MLP, which will result in an increase in the amount of gain (or
    decrease in the amount of loss) that will be recognized by the
    Trust for tax purposes upon the sale of any such equity
    securities or upon subsequent distributions in respect of such
    equity securities. The percentage of an MLP&#146;s income and
    gains that is offset by tax deductions, losses and credits will
    fluctuate over time for various reasons. A significant slowdown
    in acquisition activity or capital spending by MLPs held in the
    Trust&#146;s portfolio could result in a reduction of
    accelerated depreciation generated by new acquisitions, which
    may result in increased current tax liability for the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because of the Trust&#146;s investments in equity securities of
    MLPs, the Trust&#146;s earnings and profits may be calculated
    using accounting methods that are different from those used for
    calculating taxable income. Because of these differences, the
    Trust may make distributions out of its current or accumulated
    earnings and profits, which will be treated as dividends, in
    years in which the Trust&#146;s distributions exceed its taxable
    income. See &#147;Tax Matters.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, changes in tax laws or regulations, or future
    interpretations of such laws or regulations, could adversely
    affect the Trust or the MLP investments in which the Trust
    invests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with the Trust&#146;s Option Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The ability of the Trust to achieve current gains is partially
    dependent on the successful implementation of its option
    strategy. Risks that may adversely affect the ability of the
    Trust to successfully implement its option strategy include the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Risks Associated with Options on Securities
    Generally.</I>&#160;&#160;There are significant differences
    between the securities and options markets that could result in
    an imperfect correlation between these markets, causing a given
    transaction not to achieve its objective. A decision as to
    whether, when and how to use options involves the exercise of
    skill and judgment, and even a well-conceived transaction may be
    unsuccessful to some degree because of market behavior or
    unexpected events.
</DIV>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Risks of Writing Options.</I>&#160;&#160;As the writer of a
    covered call option, the Trust forgoes, during the option&#146;s
    life, the opportunity to profit from increases in the market
    value of the security covering the call option above the sum of
    the premium and the strike price of the call, but has retained
    the risk of loss should the price of the underlying security
    decline. As the Trust writes covered calls over more of its
    portfolio, its ability to benefit from capital appreciation
    becomes more limited and the risk of net asset value erosion
    increases. If the Trust experiences net asset value erosion,
    which itself may have an indirect negative effect on the market
    price of the Trust&#146;s shares, the Trust will have a reduced
    asset base over which to write covered calls, which may
    eventually lead to reduced distributions to shareholders. The
    writer of an option has no control over the time when it may be
    required to fulfill its obligation as a writer of the option.
    Once an option writer has received an exercise notice, it cannot
    effect a closing purchase transaction in order to terminate its
    obligation under the option and must deliver the underlying
    security at the exercise price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When the Trust writes covered put options, it bears the risk of
    loss if the value of the underlying stock declines below the
    exercise price minus the put premium. If the option is
    exercised, the Trust could incur a loss if it is required to
    purchase the stock underlying the put option at a price greater
    than the market price of the stock at the time of exercise plus
    the put premium the Trust received when it wrote the option.
    While the Trust&#146;s potential gain as the writer of a covered
    put option is limited to the premium received from the purchaser
    of the put option, the Trust risks a loss equal to the entire
    exercise price of the option minus the put premium.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Exchange-Listed Option Risks.</I>&#160;&#160;There can be no
    assurance that a liquid market will exist when the Trust seeks
    to close out an option position on an options exchange. Reasons
    for the absence of a liquid secondary market on an exchange
    include the following: (i)&#160;there may be insufficient
    trading interest in certain options; (ii)&#160;restrictions may
    be imposed by an exchange on opening transactions or closing
    transactions or both; (iii)&#160;trading halts, suspensions or
    other restrictions may be imposed with respect to particular
    classes or series of options; (iv)&#160;unusual or unforeseen
    circumstances may interrupt normal operations on an exchange;
    (v)&#160;the facilities of an exchange or the Options Clearing
    Corporation may not at all times be adequate to handle current
    trading volume; or (vi)&#160;one or more exchanges could, for
    economic or other reasons, decide or be compelled at some future
    date to discontinue the trading of options (or a particular
    class or series of options). If trading were discontinued, the
    secondary market on that exchange (or in that class or series of
    options) would cease to exist. However, outstanding options on
    that exchange that had been issued by the Options Clearing
    Corporation as a result of trades on that exchange would
    continue to be exercisable in accordance with their terms. If
    the Trust were unable to close out a covered call option that it
    had written on a security, it would not be able to sell the
    underlying security unless the option expired without exercise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The hours of trading for options on an exchange may not conform
    to the hours during which the underlying securities are traded.
    To the extent that the options markets close before the markets
    for the underlying securities, significant price and rate
    movements can take place in the underlying markets that cannot
    be reflected in the options markets. Call options are marked to
    market daily and their value will be affected by changes in the
    value and dividend rates of the underlying common stocks, an
    increase in interest rates, changes in the actual or perceived
    volatility of the stock market and the underlying common stocks
    and the remaining time to the options&#146; expiration.
    Additionally, the exercise price of an option may be adjusted
    downward before the option&#146;s expiration as a result of the
    occurrence of certain corporate events affecting the underlying
    equity security, such as extraordinary dividends, stock splits,
    merger or other extraordinary distributions or events. A
    reduction in the exercise price of an option would reduce the
    Trust&#146;s capital appreciation potential on the underlying
    security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="white-space: nowrap">Over-the-Counter</FONT>
    Option Risk.</I>&#160;&#160;The Trust may write (sell) unlisted
    <FONT style="white-space: nowrap">&#147;over-the-counter&#148;</FONT>
    or &#147;OTC&#148; options to a significant extent. Options
    written by the Trust with respect to
    <FONT style="white-space: nowrap">non-U.S.&#160;securities,</FONT>
    indices or sectors generally will be OTC options. OTC options
    differ from exchange-listed options in that they are two-party
    contracts, with exercise price, premium and other terms
    negotiated between buyer and seller, and generally do not have
    as much market liquidity as exchange-listed options. The
    counterparties to these transactions typically will be major
    international banks, broker-dealers and financial institutions.
    The Trust may be required to treat as illiquid securities being
    used to cover certain written OTC options. The OTC options
    written by the Trust will not be issued, guaranteed or cleared
    by the Options Clearing Corporation. In addition, the
    Trust&#146;s ability to terminate the OTC options may be more
    limited than with exchange-traded
</DIV>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    options. Banks, broker-dealers or other financial institutions
    participating in such transactions may fail to settle a
    transaction in accordance with the terms of the option as
    written. In the event of default or insolvency of the
    counterparty, the Trust may be unable to liquidate an OTC option
    position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Index Option Risk.</I>&#160;&#160;The Trust may sell index
    call and put options from time to time. The purchaser of an
    index call option has the right to any appreciation in the value
    of the index over the exercise price of the option on or before
    the expiration date. The purchaser of an index put option has
    the right to any depreciation in the value of the index below
    the exercise price of the option on or before the expiration
    date. Because the exercise of an index option is settled in
    cash, sellers of index call options, such as the Trust, cannot
    provide in advance for their potential settlement obligations by
    acquiring and holding the underlying securities. The Trust will
    lose money if it is required to pay the purchaser of an index
    option the difference between the cash value of the index on
    which the option was written and the exercise price and such
    difference is greater than the premium received by the Trust for
    writing the option. The value of index options written by the
    Trust, which will be priced daily, will be affected by changes
    in the value and dividend rates of the underlying common stocks
    in the respective index, changes in the actual or perceived
    volatility of the stock market and the remaining time to the
    options&#146; expiration. The value of the index options also
    may be adversely affected if the market for the index options
    becomes less liquid or smaller. Distributions paid by the Trust
    on its common shares may be derived in part from the net index
    option premiums it receives from selling index call and put
    options, less the cost of paying settlement amounts to
    purchasers of the options that exercise their options. Net index
    option premiums can vary widely over the short term and long
    term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Limitation on Option Writing Risk.</I>&#160;&#160;The number
    of call options the Trust can write is limited by the total
    assets the Trust holds and is further limited by the fact that
    all options represent 100&#160;share lots of the underlying
    common stock. Furthermore, the Trust&#146;s options transactions
    will be subject to limitations established by each of the
    exchanges, boards of trade or other trading facilities on which
    such options are traded. These limitations govern the maximum
    number of options in each class which may be written or
    purchased by a single investor or group of investors acting in
    concert, regardless of whether the options are written or
    purchased on the same or different exchanges, boards of trade or
    other trading facilities or are held or written in one or more
    accounts or through one or more brokers. Thus, the number of
    options which the Trust may write or purchase may be affected by
    options written or purchased by other investment advisory
    clients of the Advisors. An exchange, board of trade or other
    trading facility may order the liquidation of positions found to
    be in excess of these limits, and it may impose certain other
    sanctions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Tax Risk.</I>&#160;&#160;Income on options on individual
    stocks will not be recognized by the Trust for tax purposes
    until an option is exercised, lapses or is subject to a
    &#147;closing transaction&#148; (as defined by applicable
    regulations) pursuant to which the Trust&#146;s obligations with
    respect to the option are otherwise terminated. If the option
    lapses without exercise or is otherwise subject to a closing
    transaction, the premiums received by the Trust from the writing
    of such options will generally be characterized as short-term
    capital gain. If an option written by the Trust is exercised,
    the Trust may recognize taxable gain depending on the exercise
    price of the option, the option premium, and the fair market
    value of the security underlying the option. The character of
    any gain on the sale of the underlying security as short-term or
    long-term capital gain will depend on the holding period of the
    Trust in the underlying security. In general, distributions
    received by shareholders of the Trust that are attributable to
    short-term capital gains recognized by the Trust from its option
    writing activities will be taxed to such shareholders as
    ordinary income and will not be eligible for the reduced tax
    rate applicable to qualified dividend income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Options on indices of securities and sectors of securities will
    generally be
    <FONT style="white-space: nowrap">&#147;marked-to-market&#148;</FONT>
    for U.S.&#160;federal income tax purposes. As a result, the
    Trust will generally recognize gain or loss on the last day of
    each taxable year equal to the difference between the value of
    the option on that date and the adjusted basis of the option.
    The adjusted basis of the option will consequently be increased
    by such gain or decreased by such loss. Any gain or loss with
    respect to options on indices and sectors will be treated as
    short-term capital gain or loss to the extent of 40% of such
    gain or loss and long-term capital gain or loss to the extent of
    60% of such gain or loss. Because the
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    rules may cause the Trust to recognize gain in advance of the
    receipt of cash, the Trust may be required to dispose of
    investments in order to meet its distribution requirements.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuer
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Issuer risk is the risk that the value of a security may decline
    for a reason directly related to the issuer, such as management
    performance, financial leverage and reduced demand for the
    issuer&#146;s goods or services. The amount of a dividend may
    decline for reasons related to an issuer, such as changes in an
    issuer&#146;s financial condition or a decision by the issuer to
    pay a lower dividend.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investments
    in Unseasoned Companies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in the securities of smaller, less seasoned
    companies. These investments may present greater opportunities
    for growth, but also involve greater risks than customarily are
    associated with investments in securities of more established
    companies. Some of the companies in which the Trust may invest
    will be
    <FONT style="white-space: nowrap">start-up</FONT>
    companies which may have insubstantial operational or earnings
    history or may have limited products, markets, financial
    resources or management depth. Some may also be emerging
    companies at the research and development stage with no products
    or technologies to market or approved for marketing. Securities
    of emerging companies may lack an active secondary market and
    may be subject to more abrupt or erratic price movements than
    securities of larger, more established companies or stock market
    averages in general. Competitors of certain companies may have
    substantially greater financial resources than many of the
    companies in which the Trust may invest.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Fixed
    Income Securities Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The market value of fixed income investments changes in response
    to interest rate changes and other factors. During periods of
    falling interest rates, the values of outstanding fixed income
    securities generally rise. During periods of rising interest
    rates, the values of outstanding fixed income securities
    generally fall. Moreover, while securities with longer
    maturities tend to produce higher yields, the prices of longer
    maturity securities are also subject to greater market
    fluctuations as a result of changes in interest rates. As the
    average maturity or duration of a security lengthens, the risk
    that the price of such security will become more volatile
    increases. In contrast to maturity which measures only time
    until final payment, duration combines consideration of yield,
    interest payments, final maturity and call features. Additional
    risk associated with fixed income securities includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Call Risk.</I>&#160;&#160;During periods of falling interest
    rates, certain debt obligations with high interest rates may be
    prepaid (or &#147;called&#148;) by the issuer prior to maturity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Extension Risk.</I>&#160;&#160;An issuer may exercise its
    right to pay principal on an obligation held by the Trust later
    than expected. This may happen when there is a rise in interest
    rates. Under these circumstances, the value of the obligation
    will decrease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Credit Risk.</I>&#160;&#160;The possibility that an issuer
    will be unable to make timely payments of either principal or
    interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Event Risk.</I>&#160;&#160;Securities may suffer declines in
    credit quality and market value due to issuer restructurings or
    other factors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Below
    Investment Grade Securities Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest up to 10% of its total assets in securities
    that are rated below investment grade, which are commonly
    referred to as &#147;high yield securities&#148; or &#147;junk
    bonds&#148; and are regarded as predominantly speculative with
    respect to the issuer&#146;s capacity to pay interest and repay
    principal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Lower grade securities may be particularly susceptible to
    economic downturns. It is likely that an economic recession
    could disrupt severely the market for such securities and may
    have an adverse impact on the value of such securities. In
    addition, it is likely that any such economic downturn could
    adversely affect the ability of the issuers of such securities
    to repay principal and pay interest thereon and increase the
    incidence of default for such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Lower grade securities, though high yielding, are characterized
    by high risk. They may be subject to certain risks with respect
    to the issuing entity and to greater market fluctuations than
    certain lower yielding, higher rated securities. The retail
    secondary market for lower grade securities may be less liquid
    than that for higher rated
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    securities. Adverse conditions could make it difficult at times
    for the Trust to sell certain securities or could result in
    lower prices than those used in calculating the Trust&#146;s net
    asset value. Because of the substantial risks associated with
    investments in lower grade securities, you could lose money on
    your investment in common shares of the Trust, both in the
    short-term and the long-term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Ratings are relative, subjective and not absolute standards of
    quality. Securities ratings are based largely on the
    issuer&#146;s historical financial condition and the rating
    agencies&#146; analysis at the time of rating. Consequently, the
    rating assigned to any particular security is not necessarily a
    reflection of the issuer&#146;s current financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Unrated
    Securities Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Trust may purchase securities that are not rated by
    any rating organization, the Advisors may, after assessing their
    credit quality, internally assign ratings to certain of those
    securities in categories of those similar to those of rating
    organizations. Some unrated securities may not have an active
    trading market or may be difficult to value, which means the
    Trust might have difficulty selling them promptly at an
    acceptable price.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Securities
    Lending Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may lend its portfolio securities to financial
    institutions. Securities lending is subject to the risk that
    loaned securities may not be available to the Trust on a timely
    basis and the Trust may therefore lose the opportunity to sell
    the securities at a desirable price. Any loss in the market
    price of securities loaned by the Trust that occurs during the
    term of the loan would be borne by the Trust and would adversely
    affect the Trust&#146;s performance. Further, the cash
    collateral received by the Trust in connection with such a loan
    may be invested in a security that subsequently loses value.
    Also, there may be delays in recovery, or no recovery, of
    securities loaned or even a loss of rights in the collateral
    should the borrower of the securities fail financially while the
    loan is outstanding. These events could also trigger adverse tax
    consequences for the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to an exemptive order from the Commission, the Trust
    has retained an affiliated entity of the Advisor as the lending
    Agent. The lending agent may, upon the advice of the Advisor and
    on behalf of the Trust, invest cash collateral received by the
    Trust for such loans, among other things, in a private
    investment company managed by the lending agent or in registered
    money market funds advised by the Advisor or its affiliates. If
    the Trust acquires shares in either the private investment
    company or an affiliated money market fund, shareholders would
    bear both their proportionate share of the Trust&#146;s expenses
    and, indirectly, the expenses of such other entities. However,
    in accordance with the exemptive order, the investment advisor
    to the private investment company will not charge any advisory
    fees with respect to shares purchased by the Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividend
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Historically, Utilities and Infrastructure companies have
    generally paid dividends on their equity securities. However,
    dividends on common stocks are not fixed but are declared at the
    discretion of an issuer&#146;s board of directors. There is no
    guarantee that the issuers of the common stocks in which the
    Trust invests will declare dividends in the future or that if
    declared they will remain at current levels or increase over
    time. As described further in &#147;Tax Matters,&#148;
    &#147;qualified dividend income&#148; received by the Trust and
    passed through to shareholders will generally be eligible for
    the reduced tax rate applicable to individuals for taxable years
    beginning on or before December&#160;31, 2012. There is no
    assurance as to what portion of the Trust&#146;s distributions
    will constitute qualified dividend income.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Derivatives
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Derivatives are financial contracts whose value depends on, or
    is derived from, the value of an underlying asset, reference
    rate or index. The Trust typically uses derivatives as a
    substitute for taking a position in the underlying asset
    <FONT style="white-space: nowrap">and/or</FONT> as
    part of a strategy designed to reduce exposure to other risks,
    such as interest rate or currency risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may also use derivatives for leverage, in which case
    their use would involve leveraging risk. Certain derivative
    transactions may give rise to a form of leverage. Leverage
    associated with derivative transactions may cause the Trust to
    liquidate portfolio positions when it may not be advantageous to
    do so to satisfy its obligations or
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    to meet earmarking or segregation requirements, pursuant to
    applicable SEC rules and regulations, or may cause the Trust to
    be more volatile than if the Trust had not been leveraged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s use of derivative instruments involves risks
    different from, or possibly greater than, the risks associated
    with investing directly in securities and other traditional
    investments. Derivatives are subject to a number of risks
    described elsewhere in this section, such as liquidity risk,
    interest rate risk, market risk, credit risk and management
    risk. They also involve the risk of mispricing or improper
    valuation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Derivatives also involve the risk that changes in the value of a
    derivative may not correlate perfectly with the underlying
    asset, rate or index. There are a number of factors which may
    prevent a derivative instrument from achieving desired
    correlation (or inverse correlation) with an underlying asset,
    rate or index, such as the impact of fees, expenses and
    transaction costs, the timing of pricing, and disruptions or
    illiquidity in the markets for such derivative instrument.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s investments in a derivative instrument could
    lose more than the principal amount invested. Also, suitable
    derivative transactions may not be available in all
    circumstances and there can be no assurance that the Trust will
    engage in these transactions to reduce exposure to other risks
    when that would be beneficial. Although the Advisors seek to use
    derivatives to further the Trust&#146;s investment objective,
    there is no assurance that the use of derivatives will achieve
    this result.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Inflation
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Inflation risk is the risk that the value of assets or income
    from investment will be worth less in the future as inflation
    decreases the value of money. As inflation increases, the real
    value of the common shares and distributions on those shares can
    decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Deflation
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Deflation risk is the risk that prices throughout the economy
    decline over time, which may have an adverse effect on the
    market valuation of companies, their assets and their revenues.
    In addition, deflation may have an adverse effect on the
    creditworthiness of issuers and may make issuer default more
    likely, which may result in a decline in the value of the
    Trust&#146;s portfolio.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Companies and ETFs Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the limitations set forth in the Investment Company
    Act or as otherwise permitted by the SEC, the Trust may acquire
    shares in other investment companies and in ETFs, some of which
    may be investment companies. The market value of the shares of
    other investment companies and ETFs may differ from their NAV.
    As an investor in investment companies and ETFs, the Trust would
    bear its ratable share of that entity&#146;s expenses, including
    its investment advisory and administration fees, while
    continuing to pay its own advisory and administration fees and
    other expenses. As a result, shareholders will be absorbing
    duplicate levels of fees with respect to investments in other
    investment companies and ETFs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The securities of other investment companies and ETFs in which
    the Trust may invest may be leveraged. As a result, the Trust
    may be indirectly exposed to leverage through an investment in
    such securities. An investment in securities of other investment
    companies and ETFs that use leverage may expose the Trust to
    higher volatility in the market value of such securities and the
    possibility that the Trust&#146;s long-term returns on such
    securities (and, indirectly, the long-term returns of the
    Shares) will be diminished.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Strategic
    Transactions Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may engage in various Strategic Transactions in an
    effort to hedge all or a portion of the portfolio or to seek to
    enhance total return. Strategic Transactions involve the use of
    derivative instruments. The use of Strategic Transactions to
    enhance total return may be particularly speculative. Strategic
    Transactions involve risks, including the imperfect correlation
    between the value of such instruments and the underlying assets,
    the possible default of the other party to the transaction and
    illiquidity of the derivative instruments. Furthermore, the
    Trust&#146;s ability to successfully use Strategic Transactions
    depends on the Advisors&#146; ability to predict pertinent
    market movements,
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    which cannot be assured. The use of Strategic Transactions may
    result in losses greater than if they had not been used, may
    require the Trust to sell or purchase portfolio securities at
    inopportune times or for prices other than current market
    values, may limit the amount of appreciation the Trust can
    realize on an investment or may cause the Trust to hold a
    security that it might otherwise sell. Additionally, amounts
    paid by the Trust as premiums and cash or other assets held in
    margin accounts with respect to Strategic Transactions are not
    otherwise available to the Trust for investment purposes. In
    addition, please see the Trust&#146;s SAI for a more detailed
    description of Strategic Transactions and the various derivative
    instruments the Trust may use and the various risks associated
    with them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Counterparty
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust will be subject to credit risk with respect to the
    counterparties to the derivative contracts entered into by the
    Trust. If a counterparty becomes bankrupt or otherwise fails to
    perform its obligations under a derivative contract due to
    financial difficulties, the Trust may experience significant
    delays in obtaining any recovery under the derivative contract
    in bankruptcy or other reorganization proceedings. The Trust may
    obtain only a limited recovery, or may obtain no recovery, in
    such circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Non-Diversification
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has registered as a &#147;non-diversified&#148;
    investment company under the Investment Company Act. For federal
    income tax purposes, the Trust, with respect to up to 50% of its
    total assets, will be able to invest more than 5% (but not more
    than 25%, except for investments in United States government
    securities and securities of other regulated investment
    companies, which are not limited for tax purposes) of the value
    of its total assets in the securities of any single issuer or
    the securities of one or more qualified publicly traded
    partnerships. To the extent the Trust invests a relatively high
    percentage of its assets in the securities of a limited number
    of issuers, the Trust may be more susceptible than a more widely
    diversified investment company to any single corporate,
    economic, political or regulatory occurrence. The Trust&#146;s
    investments will be concentrated in a group of industries that
    make up the Utilities and Infrastructure business segments,
    which means they may present more risks than if the Trust was
    broadly diversified over numerous industries and sectors of the
    economy. &#147;See&#160;&#151; Risks of Investing in Utilities
    and Infrastructure Issuers.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with Recent Market Events</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    While U.S.&#160;and global markets had experienced extreme
    volatility and disruption for an extended period of time, 2010
    and the beginning of 2011 witnessed more stabilized economic
    activity as expectations for an economic recovery increased.
    However, risks to a robust resumption of growth persist. In
    2010, several European Union (&#147;EU&#148;) countries,
    including Greece, Ireland, Italy, Spain, and Portugal, began to
    face budget issues, some of which may have negative long-term
    effects for the economies of those countries and other EU
    countries. There is continued concern about national-level
    support for the euro and the accompanying coordination of fiscal
    and wage policy among European Economic and Monetary Union
    member countries. A return to unfavorable economic conditions
    could impair the Trust&#146;s ability to achieve its investment
    objective.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">United
    States Credit Rating Downgrade Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The events surrounding the recent negotiations regarding the
    U.S.&#160;federal government debt ceiling and the resulting
    agreement could adversely affect the Trust&#146;s ability to
    achieve its investment objective. On August&#160;5, 2011,
    S&#038;P lowered its long-term sovereign credit rating on the
    U.S.&#160;federal government debt to &#147;AA+&#148; from
    &#147;AAA.&#148; The downgrade by S&#038;P could increase
    volatility in both stock and bond markets, result in higher
    interest rates and higher Treasury yields and increase the costs
    of all kinds of debt. These events could have significant
    adverse effects on the economy generally and could result in
    significant adverse impacts on Utilities and Infrastructure
    issuers and the Trust. Neither the Advisor nor the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    can predict the effects of these or similar events in the future
    on the U.S.&#160;economy and securities markets or on the
    Trust&#146;s portfolio. The Advisors intend to monitor
    developments and seek to manage the Trust&#146;s portfolio in a
    manner consistent with achieving the Trust&#146;s investment
    objective, but there can be no assurance that it will be
    successful in doing so and the Advisors may not timely
    anticipate or manage existing, new or additional risks,
    contingencies or developments.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Market
    Disruption and Geopolitical Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The aftermath of the war in Iraq, instability in Afghanistan,
    Pakistan and the Middle East and terrorist attacks in the United
    States and around the world may result in market volatility, may
    have long-term effects on the U.S.&#160;and worldwide financial
    markets and may cause further economic uncertainties in the
    United States and worldwide. The Trust does not know how long
    the securities markets may be affected by these events and
    cannot predict the effects of these events or similar events in
    the future on the U.S.&#160;economy and securities markets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Conflicts of Interest Risk&#160;&#151; Allocation of Investment
    Opportunities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock, BlackRock&#146;s affiliates (&#147;Affiliates&#148;)
    and BlackRock&#146;s significant shareholders (&#147;Significant
    Shareholders&#148;) are involved worldwide with a broad spectrum
    of financial services and asset management activities and may
    engage in the ordinary course of business in activities in which
    their interests or the interests of their clients may conflict
    with those of the Trust. BlackRock, its Affiliates and
    Significant Shareholders may provide investment management
    services to other funds and discretionary managed accounts that
    follow an investment program similar to that of the Trust.
    Subject to the requirements of the Investment Company Act,
    BlackRock, its Affiliates and Significant Shareholders intend to
    engage in such activities and may receive compensation from
    third parties for their services. Neither BlackRock nor its
    Affiliates or Significant Shareholders are under any obligation
    to share any investment opportunity, idea or strategy with the
    Trust. As a result, BlackRock, its Affiliates and Significant
    Shareholders may compete with the Trust for appropriate
    investment opportunities. The results of the Trust&#146;s
    investment activities, therefore, may differ from those of an
    Affiliate, Significant Shareholder or another account managed by
    an Affiliate or Significant Shareholder, and it is possible that
    the Trust could sustain losses during periods in which one or
    more Affiliates or Significant Shareholders and other accounts
    achieve profits on their trading for proprietary or other
    accounts. BlackRock has adopted policies and procedures designed
    to address potential conflicts of interests. For additional
    information about potential conflicts of interest, and the way
    in which BlackRock addresses such conflicts, please see
    &#147;Conflicts of Interest&#148; and &#147;Management of the
    Trust&#151;&#160;Trust&#160;Management&#160;&#151; Potential
    Material Conflicts of Interest&#148; in the SAI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Government
    Intervention in Financial Markets Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The recent instability in the financial markets discussed above
    has led the U.S.&#160;government and certain foreign governments
    to take a number of unprecedented actions designed to support
    certain financial institutions and segments of the financial
    markets that have experienced extreme volatility, and in some
    cases a lack of liquidity, including through direct purchases of
    equity and debt securities. Federal, state, and other
    governments, their regulatory agencies or self-regulatory
    organizations may take actions that affect the regulation of the
    issuers in which the Trust invests in ways that are
    unforeseeable. Legislation or regulation may also change the way
    in which the Trust is regulated. Such legislation or regulation
    could limit or preclude the Trust&#146;s ability to achieve its
    investment objective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Congress has enacted sweeping financial legislation, the
    Dodd-Frank Wall Street Reform and Consumer Protection Act of
    2010 (the &#147;Dodd-Frank Act&#148;), signed into law by
    President Obama on July&#160;21, 2010, regarding the operation
    of banks, private fund managers and other financial
    institutions, which includes provisions regarding the regulation
    of derivatives. Many provisions of the Dodd-Frank Act will be
    implemented through regulatory rulemakings and similar processes
    over a period of time. The impact of the Dodd-Frank Act, and of
    follow-on regulation, on trading strategies and operations is
    impossible to predict, and may be adverse. Practices and areas
    of operation subject to significant change based on the impact,
    direct or indirect, of the Dodd-Frank Act and follow-on
    regulation, may change in manners that are unforeseeable, with
    uncertain effects. By way of example and not limitation, direct
    and indirect changes from the Dodd-Frank Act and follow-on
    regulation may occur to a significant degree with regard to,
    among other areas, financial consumer protection, bank ownership
    of and involvement with private funds, proprietary trading,
    registration of investment advisors, and the trading and use of
    many derivative instruments, including swaps. There can be no
    assurance that such legislation or regulation will not have a
    material adverse effect on the Trust. In addition, Congress may
    address tax policy, which also could have uncertain direct and
    indirect impact on trading and operations, as well as,
    potentially, operations and structure of the Trust, and the SEC
    has engaged in a general investigation of private funds, which
    has resulted in increased regulatory oversight and other
    legislation and regulation relating to private fund managers,
    private funds and funds of hedge funds.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Further, the Dodd-Frank Act created the Financial Stability
    Oversight Council (&#147;FSOC&#148;), an interagency body
    charged with identifying and monitoring systemic risks to
    financial markets. The FSOC has the authority to require that
    non-bank financial companies that are &#147;predominantly
    engaged in financial activities,&#148; such as the Trust, the
    Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors,</FONT>
    whose failure it determines would pose systemic risk, be placed
    under the supervision of the Board of Governors of the Federal
    Reserve System (&#147;Federal Reserve&#148;). The FSOC has the
    authority to recommend that the Federal Reserve adopt more
    stringent prudential standards and reporting and disclosure
    requirements for non-bank financial companies supervised by the
    Federal Reserve. Such disclosure requirements may include the
    disclosure of the identity of investors in private funds such as
    the Trust. The FSOC also has the authority to make
    recommendations to the Federal Reserve on various other matters
    that may affect the Trust, including requiring financial firms
    to submit resolution plans, mandating credit exposure reports,
    establishing concentration limits, and limiting short-term debt.
    The FSOC may also recommend that other federal financial
    regulators impose more stringent regulation upon, or ban
    altogether, financial activities of any financial firm that
    poses what it determines are significant risks to the financial
    system. In the event that the FSOC designates the Trust as a
    systemic risk to be placed under the Federal Reserve&#146;s
    supervision, the Trust could face stricter prudential standards,
    including risk-based capital requirements, leverage limits,
    liquidity requirements, concentration requirements, and overall
    risk management requirements, among other restrictions. Such
    requirements could hinder the Trust&#146;s ability to meet its
    investment objective and may place the Trust at a disadvantage
    with respect to its competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Additionally, BlackRock is, for purposes of the Bank Holding
    Company Act of 1956, as amended, and any rules or regulations
    promulgated thereunder from time to time, currently considered a
    subsidiary of The PNC Financial Services Group, Inc.
    (&#147;PNC&#148;), which is subject to regulation and
    supervision as a &#147;financial holding company&#148; by the
    Federal Reserve. The &#147;Volcker Rule&#148; contained in
    Section&#160;619 of the Dodd-Frank Act will limit the ability of
    banking entities, which would include BlackRock by virtue of its
    relationship with PNC, to sponsor, invest in or serve as
    investment manager of certain private investment funds. Pursuant
    to the Dodd-Frank Act, the Volcker Rule&#146;s effective date
    will be July&#160;21, 2012. Following the effective date of the
    Volcker Rule, banking entities subject to the Volcker Rule, such
    as BlackRock, will have at least a two-year period to come into
    compliance with the provisions of the Volcker Rule. The Volcker
    Rule could have a significant negative impact on BlackRock, the
    Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors.</FONT>
    BlackRock may attempt to take certain actions to lessen the
    impact of the Volcker Rule, although no assurance can be given
    that such actions would not have a significant negative impact
    on the Trust. While the U.S. financial regulators have issued
    proposed rules implementing the Volcker Rule, the Advisors
    cannot predict the extent to which the Volcker Rule will be
    subject to modification by rule prior to its effective date, or
    the impact any such modifications may have on BlackRock or the
    Advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The implementation of the Dodd-Frank Act could also adversely
    affect the Advisor, the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and the Trust by increasing transaction
    <FONT style="white-space: nowrap">and/or</FONT>
    regulatory compliance costs. In addition, greater regulatory
    scrutiny and the implementation of enhanced and new regulatory
    requirements may increase the Advisor&#146;s, the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    and the Trust&#146;s exposure to potential liabilities, and in
    particular liabilities arising from violating any such enhanced
    <FONT style="white-space: nowrap">and/or</FONT> new
    regulatory requirements. Increased regulatory oversight could
    also impose administrative burdens on the Advisor, the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and the Trust, including, without limitation, responding to
    investigations and implementing new policies and procedures. The
    ultimate impact of the Dodd-Frank Act, and any resulting
    regulation, is not yet certain and the Advisor, the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and the Trust may be affected by the new legislation and
    regulation in ways that are currently unforeseeable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Legislation
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    At any time after the date of this prospectus, legislation may
    be enacted that could negatively affect the assets of the Trust.
    Legislation or regulation may change the way in which the Trust
    itself is regulated. The Advisors cannot predict the effects of
    any new governmental regulation that may be implemented, and
    there can be no assurance that any new governmental regulation
    will not adversely affect the Trust&#146;s ability to achieve
    its investment objective.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Turnover Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s annual portfolio turnover rate may vary greatly
    from year to year, as well as within a given year. Portfolio
    turnover rate is not considered a limiting factor in the
    execution of investment decisions for the Trust. A higher
    portfolio turnover rate results in correspondingly greater
    brokerage commissions and other transactional expenses that are
    borne by the Trust. High portfolio turnover may result in an
    increased realization of net short-term capital gains by the
    Trust which, when distributed to common shareholders, will be
    taxable as ordinary income. Additionally, in a declining market,
    portfolio turnover may create realized capital losses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is subject to management risk because it is an
    actively managed investment portfolio. The Advisors and the
    individual portfolio managers will apply investment techniques
    and risk analyses in making investment decisions for the Trust,
    but there can be no guarantee that these will produce the
    desired results. The Trust may be subject to a relatively high
    level of management risk because the Trust may invest in
    derivative instruments, which may be highly specialized
    instruments that require investment techniques and risk analyses
    different from those associated with stocks and bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Not a
    Complete Investment Program</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is intended for investors seeking a high level of
    total return, through a combination of current income, current
    gains and long-term capital appreciation. The Trust is not meant
    to provide a vehicle for those who wish to exploit short-term
    swings in the stock market and is intended for long-term
    investors. An investment in shares of the Trust should not be
    considered a complete investment program. Each shareholder
    should take into account the Trust&#146;s investment objective
    as well as the shareholder&#146;s other investments when
    considering an investment in the Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Takeover
    Provisions Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s Agreement and Declaration of Trust includes
    provisions that could limit the ability of other entities or
    persons to acquire control of the Trust or convert the Trust to
    open-end status. These provisions could deprive the holders of
    common shares of opportunities to sell their common shares at a
    premium over the then current market price of the common shares
    or at net asset value. See &#147;Certain Provisions in the
    Agreement and Declaration of Trust.&#148;
</DIV>

<A name='Y93113107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">HOW THE
    TRUST&#160;MANAGES RISK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Limitations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has adopted certain investment limitations designed to
    limit investment risk. Some of these limitations are fundamental
    and thus may not be changed without the approval of the holders
    of a majority of the outstanding common shares. See
    &#147;Investment Restrictions&#148; in the SAI for a complete
    list of the fundamental and non-fundamental investment policies
    of the Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Strategic
    Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may use certain Strategic Transactions in an effort to
    hedge all or a portion of the portfolio or to seek to enhance
    total return. These strategies include using swaps, financial
    futures contracts, options on financial futures or options based
    on either an index of long-term securities or on securities
    whose prices, in the opinion of the Advisors, correlate with the
    prices of the Trust&#146;s investments. There can be no
    assurance that Strategic Transactions will be used or used
    effectively to limit risk, and Strategic Transactions may be
    subject to their own risks. Please see the Trust&#146;s SAI for
    a more detailed description of Strategic Transactions and the
    various derivative instruments the Trust may use and the various
    risks associated with them.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    OF THE TRUST</FONT></B>
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    <B><FONT style="font-family: 'Times New Roman', Times">Trustees
    and Officers</FONT></B>
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    The Board is responsible for the overall management of the
    Trust, including supervision of the duties performed by the
    Advisors. There are eleven trustees of the Trust. A majority of
    the trustees will not be &#147;interested persons&#148; (as
    defined in the Investment Company Act) of the Trust. The name
    and business address of the trustees and officers of the Trust
    and their principal occupations and other affiliations during
    the past five years are set forth under &#147;Management of the
    Trust&#148; in the SAI.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Advisor and
    <FONT style="white-space: nowrap">Sub-Advisors</FONT></FONT></B>
</DIV>

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    BlackRock Advisors acts as the Trust&#146;s investment advisor.
    BlackRock Advisors is responsible for the management of the
    Trust&#146;s portfolio and provides the necessary personnel,
    facilities, equipment and certain other services necessary to
    the operation of the Trust. BlackRock Financial Management, Inc.
    and BlackRock Investment Management, LLC act as the Trust&#146;s
    <FONT style="white-space: nowrap">sub-advisors</FONT>
    and will perform certain of the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    investment management of the Trust. BlackRock Advisors, located
    at 100 Bellevue Parkway, Wilmington, Delaware 19809, BlackRock
    Financial Management, Inc., located at 55 East 52nd&#160;Street,
    New York, New York 10055, BlackRock Investment Management, LLC,
    located at 55 East 52nd&#160;Street, New York, New York 10055,
    are wholly owned subsidiaries of BlackRock. BlackRock is one of
    the world&#146;s largest publicly-traded investment management
    firms. As of September&#160;30, 2011, BlackRock&#146;s assets
    under management were approximately $3.345 trillion. BlackRock
    has over 20&#160;years of experience managing closed-end
    products and, as of September&#160;30, 2011 advised a registered
    closed-end family of 94 exchange-listed active funds with
    approximately $39.6&#160;billion in assets. In addition,
    BlackRock advised two non-exchange-listed closed-end funds with
    approximately $322.7&#160;million in assets.
</DIV>

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    BlackRock offers products that span the risk spectrum to meet
    clients&#146; needs, including active, enhanced and index
    strategies across markets and asset classes. Products are
    offered in a variety of structures including separate accounts,
    mutual funds,
    iShares<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    (exchange traded funds), and other pooled investment vehicles.
    BlackRock also offers risk management, advisory and enterprise
    investment system services to a broad base of institutional
    investors through <I>BlackRock
    Solutions</I><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    Headquartered in New York City, as of September&#160;30, 2011,
    the firm has approximately 10,200&#160;employees in 27 countries
    and a major presence in key global markets, including North and
    South America, Europe, Asia, Australia and the Middle East and
    Africa.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Managers</FONT></B>
</DIV>

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    BlackRock uses a team approach in managing its portfolios. The
    members of the portfolio management team who are primarily
    responsible for the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management of the Trust&#146;s portfolio are as follows:
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Kathleen Anderson</I> is a Managing Director of BlackRock
    since 2008. Prior to joining BlackRock in 2006, she was a
    Director of Merrill Lynch Investment Managers, L.P.
    (&#147;MLIM&#148;). Ms.&#160;Anderson was a Director with MLIM
    from 2000 to 2006 and a Vice President with MLIM from 1994 to
    2000. Ms.&#160;Anderson has been a portfolio manager since 1998
    and was a research analyst with MLIM from 1993 to 1998.
</DIV>

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    <I>Robert Shearer</I>, CFA, is a Managing Director of BlackRock.
    Prior to joining BlackRock in 2006 he was a Managing Director of
    MLIM. Prior to joining MLIM, Mr.&#160;Shearer was a Vice
    President with David L. Babson&#160;&#038; Company, Inc., a Vice
    President and Sector Manager with Concert Capital Management,
    Inc. and a Vice President with Fiduciary Trust&#160;Company
    International.
</DIV>

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    <I>Kyle G. McClements</I>, CFA, Managing Director, is a member
    of the Fundamental Equity platform within BlackRock&#146;s
    Portfolio Management Group. He is a senior trader responsible
    for executing equity derivatives and options trades.
    Mr.&#160;McClements&#146; service with the firm dates back to
    2004, including his years with State Street Research&#160;&#038;
    Management (&#147;SSRM&#148;), which merged with BlackRock in
    2005. At SSRM, Mr.&#160;McClements was a Vice President and
    senior derivatives strategist responsible for equity derivative
    strategy and trading in the Quantitative Equity Group at State
    Street Research. Prior to joining State Street Research in 2004,
    Mr.&#160;McClements was a senior trader/analyst at Deutsche
    Asset Management, responsible for derivatives, equity program,
    technology and energy sector, and foreign exchange trading.
    Mr.&#160;McClements began his
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    career in 1994 as a derivatives analyst with Donaldson
    Lufkin&#160;&#038; Jenrette responsible for pricing and
    performance analytics for the derivatives trading desk.
</DIV>

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    <I>Daniel J. Neumann</I>, CFA, Director and energy analyst, is a
    member of BlackRock&#146;s Global Resources team. Prior to
    joining BlackRock in 2005, Mr.&#160;Neumann was a Vice President
    and fixed income analyst with State Street Research&#160;&#038;
    Management. He was responsible for coverage of the electric
    utility, natural gas distribution and pipeline sectors. From
    1999 to 2004, he was with Bank of America Securities LLC as an
    equity research associate focusing on the energy sector. He
    began his career with PaineWebber Incorporated in 1997 as an
    investment banking analyst.
</DIV>

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    <I>Christopher M. Accettella</I>, Director, is a member of the
    Fundamental Equity platform within BlackRock&#146;s Portfolio
    Management Group. He is a trader responsible for executing
    equity derivatives and options trades. Prior to joining
    BlackRock in 2005, Mr.&#160;Accettella was an institutional
    sales trader with American Technology Research. From 2001 to
    2003, he was with Deutsche Asset Management where he was
    responsible for derivatives and program trading. Prior to that,
    he was a senior associate in the Pacific Basin Equity Group at
    Scudder Investments Singapore Limited. Mr.&#160;Accettella began
    his investment career in 1997 as a portfolio analyst in the
    European Equity group of Scudder Kemper Investments, Inc.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Philosophy</FONT></B>
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The portfolio management team&#146;s investment philosophy is
    centered on offering a stable foundation for investors to
    protect and grow their assets. The portfolio management team
    believes in the total return potential and relative downside
    protection of dividend-paying securities, as they offer the
    prospect of a consistent revenue stream to buffer against market
    volatility. The portfolio management team also believes that the
    potential for downside protection combined with upside
    participation typically leads to strong long-term total returns
    and preservation of capital.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Process</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As value investors, the portfolio management team considers
    various shorter-term valuation metrics, but ultimately seeks to
    add value by managing the portfolio for longer-term earnings
    strength and consistency. They believe a well-constructed
    portfolio is one that offers upside capture in periods of
    economic strength and downside protection periods of weakness,
    thereby avoiding unnecessary portfolio turnover. The portfolio
    management team uses deep sector and industry-level expertise
    combined with fundamental
    <FONT style="white-space: nowrap">bottom-up</FONT>
    stock and industry analysis in order to narrow down their
    universe of large cap value stocks. They focus on analyzing
    those stocks that exhibit dividend &#147;discipline,&#148;
    conservative balance sheets, consistent management teams and
    those that tend to operate in industries where they have a
    sustainable competitive advantage. The combination of these
    characteristics tends to promote both earnings stability for
    downside protection and earnings strength for future
    appreciation. The ultimate goal of the process is to continually
    balance reliable dividend income with steady price appreciation
    in anticipation of strong total returns in the long term.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Research begins with an active fundamental process focusing on
    large cap issuers. The process narrows down the universe to
    dividend-paying equities with conservative
    <FONT style="white-space: nowrap">debt-to-capital</FONT>
    ratios (&#060;50%). Ideally, these companies will have strong
    balance sheets, stable revenues and earnings, and exhibit future
    earnings power. These valuations are met with a
    <FONT style="white-space: nowrap">bottom-up</FONT>
    examination of structural characteristics of sectors and
    industries, which are screened for mid- to long-term
    profitability and earnings growth projections.
</DIV>

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    Research is conducted through
    <FONT style="white-space: nowrap">one-on-one</FONT>
    meetings, firm management meetings, and analyst and portfolio
    managers&#146; fundamental research. The portfolio management
    team aims to identify the inflection points in both stocks and
    industries in order to capture the greatest potential
    appreciation. Company and sector investment ideas are developed
    from meetings, conferences, reading and screening various
    databases. Once identified, companies are researched to
    determine if the stock is at or near a technical inflection
    point.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The portfolio managers consider ongoing investment research to
    be an integral part of the portfolio management process and thus
    place a large emphasis on the research component. The portfolio
    management team
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    devotes the majority of its time to portfolio management and
    investment research. They also take advantage of
    BlackRock&#146;s global equity research departments to gain
    supplemental insight into industry and company analysis.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Management Agreements</FONT></B>
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to an investment management agreement between BlackRock
    Advisors and the Trust (the &#147;Investment Management
    Agreement&#148;), the Trust has agreed to pay BlackRock Advisors
    a management fee at an annual rate equal to 1.00% of the average
    daily value of the net assets of the Trust.
</DIV>

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    BlackRock Advisors will pay an annual
    <FONT style="white-space: nowrap">sub-advisory</FONT>
    fee to each
    <FONT style="white-space: nowrap">Sub-Advisor</FONT>
    equal to 51% of the management fee received by BlackRock
    Advisors with respect to the average daily value of the net
    assets of the Trust allocated to such Sub-Advisor.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A discussion regarding the basis for the approval of the
    investment management agreements by the board of trustees will
    be available in the Trust&#146;s first report to shareholders.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the fees paid to BlackRock Advisors, the Trust
    pays all other costs and expenses of its operations, including
    compensation of its trustees (other than those who are employees
    or officers of the Advisors), custodian, leveraging expenses,
    transfer and dividend disbursing agent expenses, legal fees,
    rating agency fees, listing fees and expenses, expenses of
    independent auditors, expenses of repurchasing shares, expenses
    of preparing, printing and distributing shareholder reports,
    notices, proxy statements and reports to governmental agencies
    and taxes, if any.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">NET ASSET
    VALUE</FONT></B>
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The NAV of the common shares of the Trust will be computed based
    upon the value of the Trust&#146;s portfolio securities and
    other assets. Net asset value per common share will be
    determined as of the close of the regular trading session on the
    NYSE on each business day on which the NYSE is open for trading.
    The Trust calculates net asset value per common share by
    subtracting the Trust&#146;s liabilities (including accrued
    expenses, dividends payable and any borrowings of the Trust)
    from the Trust&#146;s total assets (the value of the securities
    the Trust holds plus cash or other assets, including interest
    accrued but not yet received) and dividing the result by the
    total number of common shares of the Trust outstanding.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust fair values its financial instruments at market value
    using independent broker-dealer quotes or approved pricing
    services under policies approved by the Board. Equity securities
    that are traded on a recognized securities exchange (e.g., the
    NYSE), separate trading boards of a securities exchange, or
    through a market system that provides contemporaneous
    transaction pricing information (an &#147;Exchange&#148;) are
    valued via independent pricing services generally at the
    Exchange closing price or if an Exchange closing price is not
    available, the last traded price on that Exchange prior to the
    time as of which the assets or liabilities are valued. For
    equity investments traded on more than one exchange, the last
    reported sale price on the exchange where the stock is primarily
    traded is used. Equity investments traded on a recognized
    exchange for which there were no sales on that day are valued at
    the last available bid price. If no bid price is available, the
    prior day&#146;s price will be used, unless it is determined
    that such prior day&#146;s price no longer reflects the fair
    value of the security, in which case such asset will be treated
    as a Fair Value Asset (as defined herein). Investments in
    open-end investment companies are valued at net asset value each
    business day. Short-term securities with remaining maturities of
    60&#160;days or less may be valued at amortized cost, which
    approximates fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Securities and other assets and liabilities denominated in
    foreign currencies are translated into U.S.&#160;dollars using
    exchange rates determined as of the close of business on the
    NYSE. Foreign currency exchange contracts are valued at the mean
    between the bid and ask prices and are determined as of the
    close of business on the NYSE. Interpolated values are derived
    when the settlement date of the contract is an interim date for
    which quotations are not available.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Swap agreements are valued utilizing quotes received by the
    Trust&#146;s pricing service or through broker-dealers, which
    are derived using daily swap curves and models that incorporate
    a number of market data factors, such as discounted cash flows
    and trades and values of the underlying reference instruments.
    Exchange-traded options are valued at the mean between the last
    bid and ask prices at the close of the options market in which
    the options trade.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An exchange-traded option for which there is no mean price
    available is valued at the last bid (long positions) or ask
    (short positions) price. If no bid or ask price is available,
    the prior day&#146;s price will be used, unless it is determined
    that the prior day&#146;s price no longer reflects the fair
    value of the option, in which case such asset will be treated as
    a Fair Value Asset.
    <FONT style="white-space: nowrap">Over-the-counter</FONT>
    (&#147;OTC&#148;) options are valued by an independent pricing
    service using a mathematical model which incorporates a number
    of market data factors, such as the trades and prices of the
    underlying instruments. Financial futures contracts and options
    thereon, which are traded on exchanges, are valued at their last
    sale price or settle price as of the close of such exchanges.
    Other types of derivatives for which quotes may not be available
    are valued at fair value.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event that application of these methods of valuation
    results in a price for an investment which is deemed not to be
    representative of the market value of such investment or is not
    available, the investment are fair valued (&#147;Fair Value
    Assets&#148;) as determined in good faith under procedures
    established by, and under the general supervision and
    responsibility of, the Trust&#146;s board of trustees. When
    determining the price for Fair Value Assets, the Advisor
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    seek to determine the price that the Trust might reasonably
    expect to receive from the current sale of that asset in an
    arm&#146;s-length transaction. Fair value determinations shall
    be based upon all available factors that the Advisor
    <FONT style="white-space: nowrap">and/or</FONT>
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    deem relevant. The pricing of all Fair Value Assets is
    subsequently reported to the Board or a committee thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, trading in foreign instruments is substantially
    completed each day at various times prior to the close of
    business on the NYSE. Occasionally, events affecting the values
    of such instruments may occur between the foreign market close
    and the close of business on the NYSE that may not be reflected
    in the computation of the Trust&#146;s net assets. If
    significant events (for example, a company announcement, market
    volatility or a natural disaster) occur during such periods that
    are expected to materially affect the value of such instruments,
    those instruments may be deemed Fair Value Assets and be valued
    at their fair value, as determined in good faith by the
    investment advisor using a pricing service
    <FONT style="white-space: nowrap">and/or</FONT>
    policies approved by the Board. Each business day, the Trust
    uses a pricing service to assist with the valuation of certain
    foreign exchange-traded equity securities and foreign
    exchange-traded and OTC options (the &#147;Systematic Fair Value
    Price&#148;). Using current market factors, the Systematic Fair
    Value Price is designed to value such foreign securities and
    foreign options at fair value as of the close of business on the
    NYSE, which follows the close of the local markets.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">DISTRIBUTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Commencing with the Trust&#146;s initial distribution, the Trust
    intends to make regular quarterly cash distributions of all or a
    portion of its net investment income to common shareholders. We
    expect to declare the initial quarterly dividend on the
    Trust&#146;s common shares within approximately 45&#160;days
    after completion of this offering and to pay that initial
    quarterly dividend approximately 90 to 120&#160;days after
    completion of this offering. The Trust will pay common
    shareholders at least annually all or substantially all of its
    investment company taxable income. The Trust intends to pay any
    capital gains distributions at least annually. The Investment
    Company Act generally limits the Trust to one capital gain
    distribution per year, subject to certain exceptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may, pursuant to an SEC exemptive order granted to
    certain of BlackRock&#146;s closed-end funds, adopt a plan to
    support a level distribution of income, capital gains
    <FONT style="white-space: nowrap">and/or</FONT>
    return of capital (the &#147;Level&#160;Distribution
    Plan&#148;). The Level&#160;Distribution Plan will be approved
    by the Trust&#146;s Board of Trustees and be consistent with the
    Trust&#146;s investment objective and policies. Under the
    Level&#160;Distribution Plan, the Trust will distribute all
    available investment income to its shareholders, consistent with
    its investment objective and as required by the Code. If
    sufficient investment income is not available on a quarterly
    basis, the Trust will distribute long-term capital gains
    <FONT style="white-space: nowrap">and/or</FONT>
    return of capital to shareholders in order to maintain a level
    distribution. Each quarterly distribution to shareholders is
    expected to be at the fixed amount established by the Board,
    except for extraordinary distributions and potential
    distribution rate increases or decreases to enable the Trusts to
    comply with the distribution requirements imposed by the Code.
    Shareholders should not draw any conclusions about the
    Trust&#146;s investment performance from the amount of these
    distributions or from the terms of the Level&#160;Distribution
    Plan. The Trust&#146;s total return performance on NAV will be
    presented in its financial highlights table, which will be
    available in the Trust&#146;s shareholder reports, every
    six-months. The Board may amend, suspend or terminate the
    Level&#160;Distribution Plan without prior notice if it deems
    such actions to be in the best interests of the Trust or its
    shareholders. The
</DIV>
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    suspension or termination of the Level&#160;Distribution Plan
    could have the effect of creating a trading discount (if the
    Trust&#146;s stock is trading at or above net asset value) or
    widening an existing trading discount. The Trust is subject to
    risks that could have an adverse impact on its ability to
    maintain level distributions. Examples of potential risks
    include, but are not limited to, economic downturns impacting
    the markets, decreased market volatility, companies suspending
    or decreasing corporate dividend distributions and changes in
    the Code. Please see &#147;Risks&#148; for a more complete
    description of the Trust&#146;s risks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The tax treatment and characterization of the Trust&#146;s
    distributions may vary significantly from time to time because
    of the varied nature of the Trust&#146;s investments. In light
    of the Trust&#146;s investment policies, the Trust anticipates
    that the Investment Company Act will require it to accompany
    each quarterly distribution with a statement setting forth the
    estimated source (as between net income, capital gains and
    return of capital) of the distribution made. The Trust will
    indicate the proportion of its capital gains distributions that
    constitute long-term and short-term gains annually. The ultimate
    tax characterization of the Trust&#146;s distributions made in a
    calendar or fiscal year cannot finally be determined until after
    the end of that fiscal year. As a result, there is a possibility
    that the Trust may make total distributions during a calendar or
    fiscal year in an amount that exceeds the Trust&#146;s net
    investment income and net capital gains for the relevant fiscal
    year. In such situations, the amount by which the Trust&#146;s
    total distributions exceed its net investment income and net
    capital gains would generally be treated as a tax-free return of
    capital reducing the amount of a shareholder&#146;s tax basis in
    such shareholder&#146;s shares, with any amounts exceeding such
    basis treated as gain from the sale of shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Various factors will affect the level of the Trust&#146;s
    income, including the asset mix and the Trust&#146;s use of
    hedging. To permit the Trust to maintain a more stable quarterly
    distribution, the Trust may from time to time distribute less
    than the entire amount of income earned in a particular period.
    The undistributed income would be available to supplement future
    distributions. As a result, the distributions paid by the Trust
    for any particular quarterly period may be more or less than the
    amount of income actually earned by the Trust during that
    period. Undistributed income will add to the Trust&#146;s net
    asset value and, correspondingly, distributions from
    undistributed income will deduct from the Trust&#146;s net asset
    value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under normal market conditions, the Advisors will seek to manage
    the Trust in a manner such that the Trust&#146;s distributions
    are reflective of the Trust&#146;s current and projected
    earnings levels. The distribution level of the Trust is subject
    to change based upon a number of factors, including the current
    and projected level of the Trust&#146;s earnings, and may
    fluctuate over time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust reserves the right to change its distribution policy
    and the basis for establishing the rate of its quarterly
    distributions at any time and may do so without prior notice to
    common shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shareholders will automatically have all dividends and
    distributions reinvested in common shares of the Trust issued by
    the Trust or purchased in the open market in accordance with the
    Trust&#146;s dividend reinvestment plan unless an election is
    made to receive cash. See &#147;Dividend Reinvestment Plan.&#148;
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    REINVESTMENT PLAN</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless the registered owner of common shares elects to receive
    cash by contacting the Reinvestment Plan Agent, all dividends
    declared for your common shares of the Trust will be
    automatically reinvested by The Bank of New York Mellon (the
    &#147;Reinvestment Plan Agent&#148;), agent for shareholders in
    administering the Trust&#146;s Dividend Reinvestment Plan (the
    &#147;Reinvestment Plan&#148;), in additional common shares of
    the Trust. Shareholders who elect not to participate in the
    Reinvestment Plan will receive all dividends and other
    distributions in cash paid by check mailed directly to the
    shareholder of record (or, if the common shares are held in
    street or other nominee name, then to such nominee) by The Bank
    of New York Mellon, as dividend disbursing agent. You may elect
    not to participate in the Reinvestment Plan and to receive all
    dividends in cash by contacting The Bank of New York Mellon, as
    Reinvestment Plan Agent, at the address set forth below.
    Participation in the Reinvestment Plan is completely voluntary
    and may be terminated or resumed at any time without penalty by
    notice if received and processed by the Reinvestment Plan Agent
    prior to the dividend record date. Additionally, the
    Reinvestment Plan Agent seeks to process notices received after
    the record date but prior to the payable date and such notices
    often will become
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    effective by the payable date. Where late notices are not
    processed by the applicable payable date, such termination or
    resumption will be effective with respect to any subsequently
    declared dividend or other distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Some brokers may automatically elect to receive cash on your
    behalf and may re-invest that cash in additional common shares
    of the Trust for you. If you wish for all dividends declared on
    your common shares of the Trust to be automatically reinvested
    pursuant to the Reinvestment Plan, please contact your broker.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Reinvestment Plan Agent will open an account for each common
    shareholder under the Reinvestment Plan in the same name in
    which such common shareholder&#146;s common shares are
    registered. Whenever the Trust declares a dividend or other
    distribution (together, a &#147;dividend&#148;) payable in cash,
    non-participants in the Reinvestment Plan will receive cash and
    participants in the Reinvestment Plan will receive the
    equivalent in common shares. The common shares will be acquired
    by the Reinvestment Plan Agent for the participants&#146;
    accounts, depending upon the circumstances described below,
    either (i)&#160;through receipt of additional unissued but
    authorized common shares from the Trust (&#147;newly issued
    common shares&#148;) or (ii)&#160;by purchase of outstanding
    common shares on the open market (&#147;open-market
    purchases&#148;). If, on the dividend payment date, the net
    asset vale per share (NAV) is equal to or less than the market
    price per share plus estimated brokerage commissions (such
    condition often referred to as a &#147;market premium&#148;),
    the Reinvestment Plan Agent will invest the dividend amount in
    newly issued common shares on behalf of the participants. The
    number of newly issued common shares to be credited to each
    participant&#146;s account will be determined by dividing the
    dollar amount of the dividend by the NAV on the dividend payment
    date. However, if the NAV is less than 95% of the market price
    on the dividend payment date, the dollar amount of the dividend
    will be divided by 95% of the market price on the dividend
    payment date. If, on the dividend payment date, the NAV is
    greater than the market price per share plus estimated brokerage
    commissions (such condition often referred to as a &#147;market
    discount&#148;), the Reinvestment Plan Agent will invest the
    dividend amount in common shares acquired on behalf of the
    participants in open-market purchases. In the event of a market
    discount on the dividend payment date, the Reinvestment Plan
    Agent will have until the last business day before the next date
    on which the common shares trade on an &#147;ex-dividend&#148;
    basis or 30&#160;days after the dividend payment date, whichever
    is sooner (the &#147;last purchase date&#148;), to invest the
    dividend amount in common shares acquired in open-market
    purchases. It is contemplated that the Trust will pay quarterly
    income dividends. If, before the Reinvestment Plan Agent has
    completed its open-market purchases, the market price per common
    share exceeds the NAV per common share, the average per common
    share purchase price paid by the Reinvestment Plan Agent may
    exceed the NAV of the common shares, resulting in the
    acquisition of fewer common shares than if the dividend had been
    paid in newly issued common shares on the dividend payment date.
    Because of the foregoing difficulty with respect to open-market
    purchases, the Reinvestment Plan provides that if the
    Reinvestment Plan Agent is unable to invest the full dividend
    amount in open-market purchases, or if the market discount
    shifts to a market premium during the purchase period, the
    Reinvestment Plan Agent may cease making open-market purchases
    and may invest any uninvested portion in newly issued shares.
    Investments in newly issued shares made in this manner would be
    made pursuant to the same process described above and the date
    of issue for such newly issued shares will substitute for the
    dividend payment date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Reinvestment Plan agent maintains all shareholders&#146;
    accounts in the Reinvestment Plan and furnishes written
    confirmation of all transactions in the accounts, including
    information needed by shareholders for tax records. Common
    shares in the account of each Reinvestment Plan participant will
    be held by the Reinvestment Plan Agent on behalf of the
    Reinvestment Plan participant, and each shareholder proxy will
    include those shares purchased or received pursuant to the
    Reinvestment Plan. The Reinvestment Plan Agent will forward all
    proxy solicitation materials to participants and vote proxies
    for shares held under the Reinvestment Plan in accordance with
    the instructions of the participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the case of shareholders such as banks, brokers or nominees
    which hold shares for others who are the beneficial owners, the
    Reinvestment Plan Agent will administer the Reinvestment Plan on
    the basis of the number of common shares certified from time to
    time by the record shareholder&#146;s name and held for the
    account of beneficial owners who participate in the Reinvestment
    Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There will be no charges with respect to common shares issued
    directly by the Trust as a result of dividends or capital gains
    distributions payable either in common shares or in cash. The
    Reinvestment Plan Agent&#146;s fees for the handling of the
    reinvestment of dividends will be paid by the Trust. However,
    each participant will pay a per share
</DIV>
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    fee incurred in connection with open-market purchases. The
    automatic reinvestment of dividends will not relieve
    participants of any federal, state or local income tax that may
    be payable (or required to be withheld) on such dividends. See
    &#147;Tax Matters.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Participants that request a sale of shares through the
    Reinvestment Plan Agent are subject to a $0.02 per share sold
    fee. All per share fees include any brokerage commission the
    Reinvestment Plan Agent is required to pay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust reserves the right to amend or terminate the
    Reinvestment Plan. There is no direct service charge to
    participants with regard to purchases in the Reinvestment Plan;
    however, the Trust reserves the right to amend the Reinvestment
    Plan to include a service charge payable by the participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All correspondence concerning the Reinvestment Plan should be
    directed to the Reinvestment Plan Agent at BNY Mellon
    Shareholder Services, P.O. Box 358035, Pittsburgh, PA
    15252-8035; or by calling 1-866-216-0242.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>



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    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is an unincorporated statutory trust organized under
    the laws of Delaware pursuant to an Agreement and Declaration of
    Trust dated as of August&#160;25, 2011 (the &#147;Agreement and
    Declaration of Trust&#148;). The Trust is authorized to issue an
    unlimited number of common shares of beneficial interest, par
    value $0.001 per share. Each common share has one vote and, when
    issued and paid for in accordance with the terms of this
    offering, will be fully paid and non-assessable, except that the
    trustees shall have the power to cause shareholders to pay
    expenses of the Trust by setting off charges due from
    shareholders from declared but unpaid dividends or distributions
    owed the shareholders
    <FONT style="white-space: nowrap">and/or</FONT> by
    reducing the number of common shares owned by each respective
    shareholder. If and whenever Preferred Shares are outstanding,
    the holders of common shares will not be entitled to receive any
    distributions from the Trust unless all accrued dividends on
    Preferred Shares have been paid, unless asset coverage (as
    defined in the Investment Company Act) with respect to Preferred
    Shares would be at least 200% after giving effect to the
    distributions and unless certain other requirements imposed by
    any rating agencies rating the Preferred Shares have been met.
    See &#147;Description of Shares&#160;&#151; Preferred
    Shares&#148; in the SAI. All common shares are equal as to
    dividends, assets and voting privileges and have no conversion,
    preemptive or other subscription rights. The Trust will send
    annual and semi-annual reports, including financial statements,
    to all holders of its shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has no present intention to offer preferred shares.
    Any additional offering of common shares will be subject to the
    requirements of the Investment Company Act, which provides that
    shares may not be issued at a price below the then current net
    asset value, exclusive of sales load, except in connection with
    an offering to existing holders of common shares or with the
    consent of a majority of the Trust&#146;s outstanding voting
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s common shares have been approved for listing on
    the NYSE, subject to notice of issuance, under the symbol
    &#147;BUI.&#148; Net asset value will be reduced immediately
    following the offering of common shares by the amount of the
    sales load and the amount of the offering expenses paid by the
    Trust. See &#147;Summary of Trust&#160;Expenses.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unlike open-end funds, closed-end funds like the Trust do not
    continuously offer shares and do not provide daily redemptions.
    Rather, if a shareholder determines to buy additional common
    shares or sell shares already held, the shareholder may do so by
    trading through a broker on the NYSE or otherwise. Shares of
    closed-end investment companies frequently trade on an exchange
    at prices lower than net asset value. Because the market value
    of the common shares may be influenced by such factors as
    dividend levels (which are in turn affected by expenses),
    dividend stability, option premiums, cash flow, market supply
    and demand, liquidity, market volatility, general market and
    economic conditions and other factors beyond the control of the
    Trust, the Trust cannot assure you that common shares will trade
    at a price equal to or higher than net asset value in the
    future. The common shares are designed primarily for long-term
    investors and you should not purchase the common shares if you
    intend to sell them soon after purchase. See &#147;Repurchase of
    Common Shares&#148; and &#147;Repurchase of Common Shares&#148;
    in the SAI.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has no current intention of issuing preferred shares.
    Under the Investment Company Act, the Trust is not permitted to
    issue preferred shares unless immediately after such issuance
    the value of the Trust&#146;s total assets is at least 200% of
    the liquidation value of the outstanding preferred shares (i.e.,
    the liquidation value may not exceed 50% of the Trust&#146;s
    total assets). In addition, the Trust is not permitted to
    declare any cash dividend or other distribution on its common
    shares unless, at the time of such declaration, the value of the
    Trust&#146;s total assets is at least 200% of such liquidation
    value. If the Trust issues preferred shares, it may be subject
    to restrictions imposed by guidelines of one or more rating
    agencies that may issue ratings for preferred shares issued by
    the Trust. These guidelines may impose asset coverage or
    portfolio composition requirements that are more stringent than
    those imposed on the Trust by the Investment Company Act. It is
    not anticipated that these covenants or guidelines would impede
    the Advisor from managing the Trust&#146;s portfolio in
    accordance with the Trust&#146;s investment objective and
    policies. Please see &#147;Description of Shares&#148; in the
    Trust&#146;s SAI for more information.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>



<A name='Y93113113'>
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    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    PROVISIONS IN THE AGREEMENT AND DECLARATION OF TRUST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Agreement and Declaration of Trust includes provisions that
    could have the effect of limiting the ability of other entities
    or persons to acquire control of the Trust or to change the
    composition of the Board. This could have the effect of
    depriving shareholders of an opportunity to sell their shares at
    a premium over prevailing market prices by discouraging a third
    party from seeking to obtain control over the Trust. Such
    attempts could have the effect of increasing the expenses of the
    Trust and disrupting the normal operation of the Trust. The
    Board is divided into three classes, with the terms of one class
    expiring at each annual meeting of shareholders. At each annual
    meeting, one class of trustees is elected to a three-year term.
    This provision could delay for up to two years the replacement
    of a majority of the Board. A trustee may be removed from office
    for cause only, and only by the action of a majority of the
    remaining trustees followed by a vote of the holders of at least
    75% of the shares then entitled to vote for the election of the
    respective trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, the Trust&#146;s Agreement and Declaration of Trust
    requires the favorable vote of a majority of the Board followed
    by the favorable vote of the holders of at least 75% of the
    outstanding shares of each affected class or series of the
    Trust, voting separately as a class or series, to approve, adopt
    or authorize certain transactions with 5% or greater holders of
    a class or series of shares and their associates, unless the
    transaction has been approved by at least 80% of the trustees,
    in which case &#147;a majority of the outstanding voting
    securities&#148; (as defined in the Investment Company Act) of
    the Trust shall be required. For purposes of these provisions, a
    5% or greater holder of a class or series of shares (a
    &#147;Principal Shareholder&#148;) refers to any person who,
    whether directly or indirectly and whether alone or together
    with its affiliates and associates, beneficially owns 5% or more
    of the outstanding shares of all outstanding classes or series
    of shares of beneficial interest of the Trust. The 5% holder
    transactions subject to these special approval requirements are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the merger or consolidation of the Trust or any subsidiary of
    the Trust with or into any Principal Shareholder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the issuance of any securities of the Trust to any Principal
    Shareholder for cash (other than pursuant to any automatic
    dividend reinvestment plan);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sale, lease or exchange of all or any substantial part of
    the assets of the Trust to any Principal Shareholder, except
    assets having an aggregate fair market value of less than 2% of
    the total assets of the Trust, aggregating for the purpose of
    such computation all assets sold, leased or exchanged in any
    series of similar transactions within a twelve-month
    period;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sale, lease or exchange to the Trust or any subsidiary of
    the Trust, in exchange for securities of the Trust, of any
    assets of any Principal Shareholder, except assets having an
    aggregate fair market value of less than 2% of the total assets
    of the Trust, aggregating for purposes of such computation all
    assets sold, leased or exchanged in any series of similar
    transactions within a twelve-month period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To convert the Trust to an open-end investment company, the
    Trust&#146;s Agreement and Declaration of Trust requires the
    favorable vote of a majority of the Board followed by the
    favorable vote of the holders of at least 75% of the outstanding
    shares of each affected class or series of shares of the Trust,
    voting separately as a class or series, unless such amendment
    has been approved by at least 80% of the trustees, in which case
    &#147;a majority of the
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    outstanding voting securities&#148; (as defined in the
    Investment Company Act) of the Trust shall be required. The
    foregoing vote would satisfy a separate requirement in the
    Investment Company Act that any conversion of the Trust to an
    open-end investment company be approved by the shareholders. If
    approved in the foregoing manner, we anticipate conversion of
    the Trust to an open-end investment company might not occur
    until 90&#160;days after the shareholders&#146; meeting at which
    such conversion was approved and would also require at least
    10&#160;days&#146; prior notice to all shareholders. Conversion
    of the Trust to an open-end investment company would require the
    redemption of any outstanding Preferred Shares, which could
    eliminate or alter the leveraged capital structure of the Trust
    with respect to the common shares. Following any such
    conversion, it is also possible that certain of the Trust&#146;s
    investment policies and strategies would have to be modified to
    assure sufficient portfolio liquidity. In the event of
    conversion, the common shares would cease to be listed on the
    NYSE or other national securities exchanges or market systems.
    Shareholders of an open-end investment company may require the
    company to redeem their shares at any time, except in certain
    circumstances as authorized by or under the Investment Company
    Act, at their net asset value, less such redemption charge, if
    any, as might be in effect at the time of a redemption. The
    Trust expects to pay all such redemption requests in cash, but
    reserves the right to pay redemption requests in a combination
    of cash or securities. If such partial payment in securities
    were made, investors may incur brokerage costs in converting
    such securities to cash. If the Trust were converted to an
    open-end fund, it is likely that new shares would be sold at net
    asset value plus a sales load. The Board believes, however, that
    the closed-end structure is desirable in light of the
    Trust&#146;s investment objective and policies. Therefore, you
    should assume that it is not likely that the Board would vote to
    convert the Trust to an open-end fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For the purposes of calculating &#147;a majority of the
    outstanding voting securities&#148; under the Trust&#146;s
    Agreement and Declaration of Trust, each class and series of the
    Trust shall vote together as a single class, except to the
    extent required by the Investment Company Act or the
    Trust&#146;s Agreement and Declaration of Trust with respect to
    any class or series of shares. If a separate vote is required,
    the applicable proportion of shares of the class or series,
    voting as a separate class or series, also will be required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has determined that provisions with respect to the
    Board and the shareholder voting requirements described above,
    which voting requirements are greater than the minimum
    requirements under Delaware law or the Investment Company Act,
    are in the best interests of shareholders generally. Reference
    should be made to the Agreement and Declaration of Trust on file
    with the Securities and Exchange Commission for the full text of
    these provisions.
</DIV>

<A name='Y93113114'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CLOSED-END
    FUND&#160;STRUCTURE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is a non-diversified, closed-end management investment
    company with no operating history (commonly referred to as a
    closed-end fund). Closed-end funds differ from open-end funds
    (which are generally referred to as mutual funds) in that
    closed-end funds generally list their shares for trading on a
    stock exchange and do not redeem their shares at the request of
    the shareholder. This means that if you wish to sell your shares
    of a closed-end fund you must trade them on the stock exchange
    like any other stock at the prevailing market price at that
    time. In a mutual fund, if the shareholder wishes to sell shares
    of the fund, the mutual fund will redeem or buy back the shares
    at &#147;net asset value.&#148; Also, mutual funds generally
    offer new shares on a continuous basis to new investors, and
    closed-end funds generally do not. The continuous inflows and
    outflows of assets in a mutual fund can make it difficult to
    manage the Trust&#146;s investments. By comparison, closed-end
    funds are generally able to stay more fully invested in
    securities that are consistent with their investment objectives,
    and also have greater flexibility to make certain types of
    investments, and to use certain investment strategies, such as
    financial leverage and investments in illiquid securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shares of closed-end funds frequently trade at a discount to
    their net asset value. Because of this possibility and the
    recognition that any such discount may not be in the interest of
    shareholders, the Board might consider from time to time
    engaging in open-market repurchases, tender offers for shares or
    other programs intended to reduce the discount. We cannot
    guarantee or assure, however, that the Board will decide to
    engage in any of these actions. Nor is there any guarantee or
    assurance that such actions, if undertaken, would result in the
    shares trading at a price equal or close to net asset value per
    share. See &#147;Repurchase of Common Shares&#148; and
    &#147;Repurchase of Common Shares&#148; in
</DIV>
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    <BR>
    52
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the SAI. The Board might also consider converting the Trust to
    an open-end mutual fund, which would also require a vote of the
    shareholders of the Trust.
</DIV>

<A name='Y93113115'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">REPURCHASE
    OF COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shares of closed-end investment companies often trade at a
    discount to their net asset values, and the Trust&#146;s common
    shares may also trade at a discount to their net asset value,
    although it is possible that they may trade at a premium above
    net asset value. The market price of the Trust&#146;s common
    shares will be determined by such factors as relative demand for
    and supply of such common shares in the market, the Trust&#146;s
    net asset value, general market and economic conditions and
    other factors beyond the control of the Trust. See &#147;Net
    Asset Value.&#148; Although the Trust&#146;s common shareholders
    will not have the right to redeem their common shares, the Trust
    may take action to repurchase common shares in the open market
    or make tender offers for its common shares. This may have the
    effect of reducing any market discount from net asset value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There is no assurance that, if action is undertaken to
    repurchase or tender for common shares, such action will result
    in the common shares&#146; trading at a price which approximates
    their net asset value. Although share repurchases and tenders
    could have a favorable effect on the market price of the
    Trust&#146;s common shares, you should be aware that the
    acquisition of common shares by the Trust will decrease the
    capital of the Trust and, therefore, may have the effect of
    increasing the Trust&#146;s expense ratio and decreasing the
    asset coverage with respect to any Preferred Shares outstanding.
    Any share repurchases or tender offers will be made in
    accordance with the requirements of the Securities Exchange Act
    of 1934, as amended, the Investment Company Act and the
    principal stock exchange on which the common shares are traded.
    For additional information, see &#147;Repurchase of Common
    Shares&#148; in the SAI.
</DIV>

<A name='Y93113116'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TAX
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a description of certain U.S.&#160;federal
    income tax consequences to a shareholder of acquiring, holding
    and disposing of common shares of the Trust. This discussion is
    based upon current provisions of the Code, the regulations
    promulgated thereunder and judicial and administrative
    authorities, all of which are subject to change or differing
    interpretations by the courts or the IRS, possibly with
    retroactive effect. No assurance can be given that the IRS would
    not assert, or that a court would not sustain, a position
    different from any of the tax aspects set forth below. This
    discussion assumes that the Trust&#146;s shareholder&#146;s hold
    their common shares as capital assets for U.S.&#160;federal
    income tax purposes (generally, assets held for investment). No
    attempt is made to present a detailed explanation of all
    U.S.&#160;federal, state, local and foreign tax concerns
    affecting the Trust and its shareholders (including shareholders
    subject to special provisions of the Code). The discussion set
    forth herein does not constitute tax advice. Shareholders are
    urged to consult their own tax advisors to determine the tax
    consequences to them of investing in the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust intends to elect to be treated as, and to qualify each
    year for special tax treatment afforded to, a regulated
    investment company under Subchapter M of the Code. In order to
    qualify as a regulated investment company, the Trust must, among
    other things, satisfy income, asset diversification and
    distribution requirements. As long as it so qualifies, the Trust
    will not be subject to U.S.&#160;federal income tax to the
    extent that it distributes annually its investment company
    taxable income (which includes ordinary income and the excess of
    net short-term capital gain over net long-term capital loss) and
    its &#147;net capital gain&#148; (i.e., the excess of net
    long-term capital gain over net short-term capital loss). The
    Trust intends to distribute at least annually substantially all
    of such income and gain. If the Trust retains any investment
    company taxable income or net capital gain, it will be subject
    to U.S.&#160;federal income tax on the retained amount at
    regular corporate tax rates. In addition, if the Trust fails to
    qualify as a regulated investment company for any taxable year,
    it will be subject to U.S.&#160;federal income tax on all of its
    income and gains at regular corporate tax rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions paid to you by the Trust from its investment
    company taxable income are generally taxable to you as ordinary
    income to the extent of the Trust&#146;s current and accumulated
    earnings and profits. Certain properly designated distributions
    may, however, qualify (provided that holding period and other
    requirements are met by both the Trust and the shareholder)
    (i)&#160;for the dividends received deduction in the case of
    corporate shareholders to the extent that the Trust&#146;s
    income consists of dividend income from U.S.&#160;corporations
    or (ii)&#160;in the case of individual shareholders, for taxable
    years beginning on or before December&#160;31, 2012, as
    qualified dividend income eligible to be taxed at a reduced
    maximum rate to the extent that the Trust receives qualified
    dividend income. Qualified
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    dividend income is, in general, dividend income from taxable
    domestic corporations and certain foreign corporations. There
    can be no assurance as to what portion of the Trust&#146;s
    distributions will qualify for the dividends received deduction
    or for treatment as qualified dividend income or as to whether
    the favorable tax treatment for qualified dividend income will
    be extended by Congress for taxable years beginning after 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions made to you from an excess of net long-term
    capital gain over net short-term capital loss (&#147;capital
    gain dividends&#148;), including capital gain dividends credited
    to you but retained by the Trust, are taxable to you as
    long-term capital gains if they have been properly reported by
    the Trust, regardless of the length of time you have owned Trust
    shares. For individuals, long-term capital gains are generally
    taxed at a reduced maximum rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If, for any calendar year, the Trust&#146;s total distributions
    exceed both the current taxable year&#146;s earnings and profits
    and accumulated earnings and profits from prior years, the
    excess will generally be treated as a tax-free return of capital
    up to the amount of a shareholder&#146;s tax basis in the common
    shares, reducing that basis accordingly. Such distributions
    exceeding the shareholder&#146;s basis will be treated as gain
    from the sale or exchange of the shares. When you sell your
    shares in the Trust, the amount, if any, by which your sales
    price exceeds your basis in the shares is gain subject to tax.
    Because a return of capital reduces your basis in the shares, it
    will increase the amount of your gain or decrease the amount of
    your loss when you sell the shares. Generally, after the end of
    each year, you will be provided with a written notice reporting
    the amount of ordinary dividend income, capital gain dividends
    and other distributions (if relevant).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The sale or other disposition of shares of the Trust will
    generally result in capital gain or loss to you which will be
    long-term capital gain or loss if the shares have been held for
    more than one year at the time of sale. Any loss upon the sale
    or exchange of Trust shares held for six months or less will be
    treated as long-term capital loss to the extent of any capital
    gain dividends received by you (including amounts credited to
    you as an undistributed capital gain dividend). Any loss
    realized on a sale or exchange of shares of the Trust will be
    disallowed if other substantially identical shares are acquired
    (whether through the automatic reinvestment of dividends or
    otherwise) within a
    <FONT style="white-space: nowrap">61-day</FONT>
    period beginning 30&#160;days before and ending 30&#160;days
    after the date of disposition of the shares. In such case, the
    basis of the shares acquired will be adjusted to reflect the
    disallowed loss. Present law taxes both long-term and short-term
    capital gain of corporations at the rates applicable to ordinary
    income. For non-corporate taxpayers, short-term capital gain
    will currently be taxed at the U.S.&#160;federal income tax
    rates applicable to ordinary income, while long-term capital
    gain generally will be taxed at a reduced maximum
    U.S.&#160;federal income tax rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dividends and other taxable distributions are taxable to
    shareholders. If the Trust pays you a dividend in January that
    was declared in the previous October, November or December to
    shareholders of record on a specified date in one of such
    months, then such dividend will be treated for tax purposes as
    being paid by the Trust and received by you on December 31 of
    the year in which the dividend was declared.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is required in certain circumstances to withhold, for
    U.S.&#160;federal backup withholding purposes, on taxable
    dividends and certain other payments paid to non-exempt holders
    of the Trust&#146;s shares who do not furnish the Trust with
    their correct taxpayer identification number (in the case of
    individuals, their social security number) and certain
    certifications, or who are otherwise subject to backup
    withholding. Backup withholding is not an additional tax. Any
    amounts withheld from payments made to you may be refunded or
    credited against your U.S.&#160;federal income tax liability, if
    any, provided that the required information is furnished to the
    IRS. In addition, the Trust may be required to withhold on
    distributions to
    <FONT style="white-space: nowrap">non-U.S.&#160;Shareholders.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The foregoing is a general and abbreviated summary of the
    provisions of the Code and the Treasury regulations in effect as
    they directly govern the taxation of the Trust and its
    shareholders. These provisions are subject to change by
    legislative, judicial or administrative action, and any such
    change may be retroactive. A more complete discussion of the tax
    rules applicable to the Trust and its shareholders can be found
    in the SAI that is incorporated by reference into this
    prospectus. Shareholders are urged to consult their tax advisors
    regarding the U.S.&#160;federal, foreign, state and local tax
    consequences of investing in the Trust.
</DIV>
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    <BR>
    54
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the terms and subject to the conditions contained in the
    underwriting agreement, dated the date of this prospectus, the
    Underwriters named below, for which Morgan Stanley &#038; Co.
    LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce,
    Fenner&#160;&#038; Smith Incorporated, UBS Securities LLC and
    Wells Fargo Securities, LLC are acting as representatives (the
    &#147;Representatives&#148;), have severally agreed to purchase,
    and the Trust has agreed to sell to them, the number of the
    Trust&#146;s common shares indicated below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Underwriters</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Common Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Morgan Stanley&#160;&#038; Co. LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,370,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Citigroup Global Markets Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,425,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -52pt; margin-left: 52pt">
    Merrill Lynch, Pierce, Fenner&#160;&#038; Smith<BR>
    Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    UBS Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,070,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wells Fargo Securities, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ameriprise Financial Services, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    RBC Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    510,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Comerica Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    350,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    BB&#038;T Capital Markets, a division of Scott &#038;
    Stringfellow, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Chardan Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J.J.B. Hilliard, W.L. Lyons, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Janney Montgomery Scott LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Knight Capital Americas, L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ladenburg Thalmann&#160;&#038; Co. Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Maxim Group LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wedbush Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wunderlich Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brean Murray, Carret&#160;&#038; Co., LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capitol Securities Management Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Crowell, Weedon&#160;&#038; Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    D.A. Davidson&#160;&#038; Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dominick&#160;&#038; Dominick LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    E*Trade Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Geoffrey Richards Securities Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gilford Securities Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Henley&#160;&#038; Company LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. P. Turner&#160;&#038; Company, L.L.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Morgan Keegan&#160;&#038; Company, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Newbridge Securities Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paulson Investment Company, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pershing LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. M. Stark Co., Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Source Capital Group, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Southwest Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Synovus Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wayne Hummer Investments L.L.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Westminster Financial Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters are offering the common shares subject to their
    acceptance of the shares from the Trust and subject to prior
    sale. The underwriting agreement provides that the obligations
    of the several Underwriters to pay for
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    and accept delivery of the common shares offered by this
    prospectus are subject to the approval of legal matters by their
    counsel and to certain other conditions. The Underwriters are
    obligated to take and pay for all of the common shares offered
    by this prospectus if any such shares are taken. However, the
    Underwriters are not required to take or pay for the common
    shares covered by the Underwriters&#146; over-allotment option
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters initially propose to offer part of the common
    shares directly to the public at the initial offering price
    listed on the cover page of this prospectus and part to certain
    dealers at a price that represents a concession not in excess of
    $0.60 per common share under the initial offering price. After
    the initial offering of the common shares, the offering price
    and other selling terms may from time to time be varied by the
    Representatives. The underwriting discounts and commissions
    (sales load) of $0.90 per common share are equal to 4.5% of the
    initial offering price. Investors must pay for any common shares
    purchased on or before November&#160;28, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has granted to the Underwriters an option, exercisable
    for 45&#160;days from the date of this prospectus, to purchase
    up to an aggregate of 2,325,000 common shares at the initial
    offering price per common share listed on the cover page of this
    prospectus, less underwriting discounts and commissions. The
    Underwriters may exercise this option solely for the purpose of
    covering over-allotments, if any, made in connection with the
    offering of the common shares offered by this prospectus. To the
    extent the option is exercised, each Underwriter will become
    obligated, subject to limited conditions, to purchase
    approximately the same percentage of the additional common
    shares as the number listed next to the Underwriter&#146;s name
    in the preceding table bears to the total number of common
    shares listed next to the names of all Underwriters in the
    preceding table. If the Underwriters&#146; over-allotment option
    is exercised in full, the total price to the public would be
    $356,500,000, the total Underwriters&#146; discounts and
    commissions (sales load) would be $16,042,500, estimated
    offering expenses would be $713,000, and the total proceeds to
    the Trust, after expenses, would be $339,744,500.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table summarizes the estimated expenses (assuming
    the Trust issues common shares) and compensation that the Trust
    will pay:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Common Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>With<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Over-allotment</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $20.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $20.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $310,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $356,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sales load
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $13,950,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $16,042,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Estimated offering expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $620,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $713,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds, after expenses, to the Trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $19.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $19.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $295,430,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $339,744,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust, the Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    have agreed to indemnify the underwriters against certain
    liabilities. The fees to certain Underwriters described below
    under &#147;&#151;&#160;Additional Compensation to Be Paid by
    the Advisor&#148; are not reimbursable to the Advisor by the
    Trust, and are therefore not reflected in expenses payable by
    the Trust in the table above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Organizational and offering expenses paid by the Trust (other
    than sales load) will not exceed $0.04 per common share sold by
    the Trust in this offering. If the organizational and offering
    expenses referred to in the preceding sentence exceed this
    amount, the Advisor will pay the excess. The aggregate offering
    expenses (excluding sales load) are estimated to be $1,850,975
    in total, $620,000 of which will be borne by the Trust (or
    $713,000 if the Underwriters exercise their over-allotment
    option in full). See &#147;Summary of Trust&#160;Expenses.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters have informed the Trust that they do not intend
    sales to discretionary accounts to exceed five percent of the
    total number of common shares offered by them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to meet requirements for listing the common shares on
    the NYSE, the Underwriters have undertaken to sell lots of 100
    or more shares to a minimum of 400 beneficial owners in the
    United States. The minimum investment requirement is 100 common
    shares ($2,000).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s common shares have been approved for listing on
    the NYSE, subject to notice of issuance. The trading or
    &#147;ticker&#148; symbol is &#147;BUI.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has agreed that, without the prior written consent of
    the Representatives on behalf of the Underwriters, it will not,
    during the period ending 180&#160;days after the date of this
    prospectus, offer, sell, contract
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    56
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    to sell, pledge, or otherwise dispose of, or enter into any
    transaction which is designed to, or might reasonably be
    expected to, result in the disposition (whether by actual
    disposition or effective economic disposition due to cash
    settlement or otherwise) by the Trust or any affiliate of the
    Trust or any person in privity with the Trust, directly or
    indirectly, including the filing (or participation in the
    filing) of a registration statement with the SEC in respect of,
    or establish or increase a put equivalent position or liquidate
    or decrease a call equivalent position within the meaning of
    Section&#160;16 of the Securities Exchange Act of 1934, as
    amended, any other common shares or any securities convertible
    into, or exercisable, or exchangeable for, common shares; or
    publicly announce an intention to effect any such transaction.
    In the event that either (x)&#160;during the last 17&#160;days
    of the
    <FONT style="white-space: nowrap">180-day</FONT>
    period referred to above, the Trust issues an earnings release
    or material news or a material event relating to the Trust
    occurs or (y)&#160;prior to the expiration of such
    <FONT style="white-space: nowrap">180-day</FONT>
    period, the Trust announces that it will release earnings
    results during the
    <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of such
    <FONT style="white-space: nowrap">180-day</FONT>
    period, the restrictions described above shall continue to apply
    until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the date of the earnings release or the
    occurrence of the material news or material event, as
    applicable. This
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement will not apply to the common shares to be sold
    pursuant to the underwriting agreement or any common shares
    issued pursuant to the Reinvestment Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to facilitate the offering of the common shares, the
    Underwriters may engage in transactions that stabilize, maintain
    or otherwise affect the price of the common shares. The
    Underwriters currently expect to sell more common shares than
    they are obligated to purchase under the underwriting agreement,
    creating a short position in the common shares for their own
    account. A short sale is covered if the short position is no
    greater than the number of common shares available for purchase
    by the Underwriters under the over-allotment option (exercisable
    for 45&#160;days from the date of this prospectus). The
    Underwriters can close out a covered short sale by exercising
    the over-allotment option or purchasing common shares in the
    open market. In determining the source of common shares to close
    out a covered short sale, the Underwriters will consider, among
    other things, the open market price of the common shares
    compared to the price available under the over-allotment option.
    The Underwriters may also sell common shares in excess of the
    over-allotment option, creating a naked short position. The
    Underwriters must close out any naked short position by
    purchasing common shares in the open market. A naked short
    position is more likely to be created if the Underwriters are
    concerned that there may be downward pressure on the price of
    the common shares in the open market after pricing that could
    adversely affect investors who purchase in the offering. As an
    additional means of facilitating the offering, the Underwriters
    may bid for, and purchase, common shares in the open market to
    stabilize the price of the common shares. Finally, the
    underwriting syndicate may also reclaim selling concessions
    allowed to an Underwriter or a dealer for distributing the
    common shares in the offering, if the syndicate repurchases
    previously distributed common shares in transactions to cover
    syndicate short positions or to stabilize the price of the
    common shares. Any of these activities may raise or maintain the
    market price of the common shares above independent market
    levels or prevent or retard a decline in the market price of the
    common shares. The Underwriters are not required to engage in
    these activities, and may end any of these activities at any
    time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to this offering, there has been no public or private
    market for the common shares or any other securities of the
    Trust. Consequently, the offering price for the common shares
    was determined by negotiation among the Trust, the Advisor and
    the Representatives. There can be no assurance, however, that
    the price at which the common shares trade after this offering
    will not be lower than the price at which they are sold by the
    Underwriters or that an active trading market in the common
    shares will develop and continue after this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust anticipates that the Representatives and certain other
    Underwriters may from time to time act as brokers and dealers in
    connection with the execution of its portfolio transactions
    after they have ceased to act as underwriters and, subject to
    certain restrictions, may act as such brokers while they act as
    underwriters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with this offering, certain of the Underwriters or
    selected dealers may distribute prospectuses electronically. The
    Trust, the Advisor, the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and the Underwriters have agreed to indemnify each other against
    certain liabilities, including liabilities under the
    1933&#160;Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the public offering of common shares, an affiliate of
    the Advisor purchased common shares from the Trust in an amount
    satisfying the net worth requirements of Section&#160;14(a) of
    the 1940 Act. As of the date of this prospectus, such affiliate
    of the Advisor owned 100% of the outstanding common shares. Such
    affiliate of the
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    57
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<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Advisor may be deemed to control the Trust until such time as it
    owns less than 25% of the outstanding common shares, which is
    expected to occur as of the completion of the offering of common
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters and their respective affiliates are full
    service financial institutions engaged in various activities,
    which may include securities trading, commercial lending,
    investment banking, financial advisory, investment management,
    principal investment, hedging, derivatives, financing and
    brokerage activities. Certain of the Underwriters or their
    respective affiliates from time to time have provided in the
    past, and may provide in the future, securities trading,
    commercial lending, investment banking, financial advisory,
    investment management, principal investment, hedging,
    derivatives, financing and brokerage activities to the Trust,
    certain of its executive officers and affiliates and the
    Advisor, the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and their affiliates in the ordinary course of business, for
    which they have received, and may receive, customary fees and
    expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    No action has been taken in any jurisdiction (except in the
    United States) that would permit a public offering of the common
    shares, or the possession, circulation or distribution of this
    prospectus or any other material relating to the Trust or the
    common shares in any jurisdiction where action for that purpose
    is required. Accordingly, the common shares may not be offered
    or sold, directly or indirectly, and neither this prospectus nor
    any other offering material or advertisements in connection with
    the common shares may be distributed or published, in or from
    any country or jurisdiction except in compliance with the
    applicable rules and regulations of any such country or
    jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The principal business address of Morgan Stanley &#038; Co. LLC
    is 1585 Broadway, New York, New York 10036. The principal
    business address of Citigroup Global Markets Inc. is 388
    Greenwich Street, New York, New York 10013. The principal
    business address of Merrill Lynch, Pierce, Fenner&#160;&#038;
    Smith Incorporated is One Bryant Park, New York, New York 10036.
    The principal place of business of UBS Securities LLC is 299
    Park Avenue, New York, New York 10171. The principal address of
    Wells Fargo Securities, LLC is 375 Park Avenue, New York, New
    York 10152.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Additional
    Compensation to be Paid by the Advisor</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay Morgan Stanley
    &#038; Co. LLC from its own assets, upfront structuring and
    syndication fees in the amount of $3,240,993.09 for advice
    relating to the structure, design and organization of the Trust,
    including without limitation, views from an investor market,
    distribution and syndication perspective on (i)&#160;marketing
    issues with respect to the Trust&#146;s investment policies and
    proposed investments, (ii)&#160;the overall marketing and
    positioning thesis for the offering of the Trust&#146;s common
    shares, (iii)&#160;securing participants in the Trust&#146;s
    initial public offering, (iv)&#160;preparation of marketing and
    diligence materials for Underwriters, (v)&#160;conveying
    information and market updates to the Underwriters, and
    (vi)&#160;coordinating syndicate orders in this offering. The
    upfront structuring and syndication fees paid to Morgan Stanley
    &#038; Co. LLC will not exceed 1.0455% of the total public
    offering price of the common shares. These services provided by
    Morgan Stanley &#038; Co. LLC to the Advisor are unrelated to
    the Advisor&#146;s function of advising the Trust as to its
    investments in securities or use of investment strategies and
    investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay Citigroup
    Global Markets Inc. from its own assets, an upfront structuring
    fee in the amount of $751,447.40 for advice relating to the
    structure and design of the Trust, which may but need not
    necessarily include views from an investor market and
    distribution perspective on (i)&#160;marketing issues with
    respect to the Trust&#146;s investment policies and proposed
    investments and (ii)&#160;the overall marketing and positioning
    thesis for the Trust&#146;s initial public offering. The upfront
    structuring fee paid to Citigroup Global Markets Inc. will not
    exceed 0.2424% of the total public offering price of the common
    shares. These services provided by Citigroup Global Markets Inc.
    to the Advisor are unrelated to the Advisor&#146;s function of
    advising the Trust as to its investments in securities or use of
    investment strategies and investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay Merrill Lynch,
    Pierce, Fenner&#160;&#038; Smith Incorporated from its own
    assets, an upfront structuring fee in the amount of $1,443,513
    for advice relating to the structure and design and the
    organization of the Trust as well as services related to the
    sale and distribution of the Trust&#146;s common shares. The
    upfront structuring fee paid to Merrill Lynch, Pierce,
    Fenner&#160;&#038; Smith Incorporated will not exceed 0.4656% of
    the total public offering price of the Trust&#146;s common
    shares. These services provided by Merrill Lynch, Pierce,
</DIV>
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    <BR>
    58
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Fenner&#160;&#038; Smith Incorporated to Advisor are unrelated
    to the Advisor&#146;s function of advising the Trust as to its
    investments in securities or use of investment strategies and
    investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay UBS Securities
    LLC from its own assets, an upfront structuring fee in the
    amount of $326,871.18 for advice relating to the structure,
    design and organization of the Trust, and the distribution of
    its common shares. The upfront structuring fee paid to UBS
    Securities LLC will not exceed 0.1054% of the total public
    offering price of the Trust&#146;s common shares. These services
    provided by UBS Securities LLC to the Advisor are unrelated to
    the Advisor&#146;s function of advising the Trust as to its
    investments in securities or use of investment strategies and
    investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay Wells Fargo
    Securities, LLC from its own assets, an upfront structuring fee
    in the amount of $395,926.75 for advice relating to the
    structure and design of the Trust, including without limitation,
    services related to the sale and distribution of the
    Trust&#146;s common shares. The upfront structuring fee paid to
    Wells Fargo Securities, LLC will not exceed 0.1277% of the total
    public offering price of the Trust&#146;s common shares. These
    services provided by Wells Fargo Securities, LLC to the Advisor
    are unrelated to the Advisor&#146;s function of advising the
    Trust as to its investments in securities or use of investment
    strategies and investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor (and not the Trust) has agreed to pay Ameriprise
    Financial Services, Inc. from its own assets, an upfront
    structuring fee in the amount of $138,349.50 for advice relating
    to the structure and design of the Trust and the organization of
    the Trust as well as services related to the sale and
    distribution of the Trust&#146;s common shares. The upfront
    structuring fee paid to Ameriprise Financial Services, Inc. will
    not exceed 0.0446% of the total public offering price of the
    Trust&#146;s common shares. These services provided by
    Ameriprise Financial Services, Inc. to the Advisor are unrelated
    to the Advisor&#146;s function of advising the Trust as to its
    investments in securities or use of investment strategies and
    investment techniques.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor and certain of its affiliates (and not the Trust)
    may pay commissions to certain of the employees of the
    Advisor&#146;s affiliates that participate in the marketing of
    the Trust&#146;s common shares. The commissions paid to the
    certain employees of the Advisor&#146;s affiliates will not
    exceed 0.19% of the total public offering price of the
    Trust&#146;s common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Total underwriting compensation determined in accordance with
    FINRA rules is summarized as follows. The sales load the Trust
    will pay of $0.90 per share is equal to 4.5% of the total public
    offering price of the Trust&#146;s common shares. The Trust has
    agreed to reimburse the Underwriters the expenses related to the
    reasonable fees and disbursements of counsel to the Underwriters
    in connection with the review by FINRA of the terms of the sale
    of the common shares in an amount not to exceed $15,000 in the
    aggregate, which amount will not exceed 0.0048% of the total
    public offering price of the Trust&#146;s common shares. The sum
    total of all compensation to the Underwriters and commissions
    paid to employees of the Advisor&#146;s affiliates in connection
    with this public offering of common shares, including sales
    load, expense reimbursement and all forms of syndication fee and
    structuring fee payments to the Underwriters will not exceed
    6.7260% of the total public offering price of the Trust&#146;s
    common shares.
</DIV>

<A name='Y93113118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CUSTODIAN
    AND TRANSFER AGENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Custodian of the assets of the Trust is The Bank of New York
    Mellon. The Custodian performs custodial, trust accounting and
    portfolio accounting services. The Bank of New York Mellon will
    also serve as the Trust&#146;s Transfer Agent with respect to
    the common shares.
</DIV>

<A name='Y93113119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    OPINIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain legal matters in connection with the common shares will
    be passed upon for the Trust by Skadden, Arps, Slate,
    Meagher&#160;&#038; Flom LLP, New York, New York, and for the
    Underwriters by Clifford Chance US LLP, New York, New York.
    Clifford Chance US LLP may rely on Skadden, Arps, State, Meagher
    &#038; Flom LLP as to matters of Delaware law.
</DIV>
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    <BR>
    59
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PRIVACY
    PRINCIPLES OF THE TRUST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is committed to maintaining the privacy of its current
    and former shareholders and to safeguarding their non-public
    personal information. The following information is provided to
    help you understand what personal information the Trust
    collects, how the Trust protects that information and why, in
    certain cases, the Trust may share such information with select
    parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust obtains or verifies personal non-public information
    from and about you from different sources, including the
    following: (i)&#160;information the Trust receives from you or,
    if applicable, your financial intermediary, on applications,
    forms or other documents; (ii)&#160;information about your
    transactions with the Trust, its affiliates or others;
    (iii)&#160;information the Trust receives from a consumer
    reporting agency; and (iv)&#160;from visits to the Trust&#146;s
    or its affiliates&#146; websites.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust does not sell or disclose to non-affiliated third
    parties any non-public personal information about its current
    and former shareholders, except as permitted by law or as is
    necessary to respond to regulatory requests or to service
    shareholder accounts. These non-affiliated third parties are
    required to protect the confidentiality and security of this
    information and to use it only for its intended purpose.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may share information with its affiliates to service
    your account or to provide you with information about other
    BlackRock products or services that may be of interest to you.
    In addition, the Trust restricts access to non-public personal
    information about its current and former shareholders to those
    BlackRock employees with a legitimate business need for the
    information. The Trust maintains physical, electronic and
    procedural safeguards that are designed to protect the
    non-public personal information of its current and former
    shareholders, including procedures relating to the proper
    storage and disposal of such information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If you are located in a jurisdiction where specific laws, rules
    or regulations require the Trust to provide you with additional
    or different privacy-related rights beyond what is set forth
    above, then the Trust will comply with those specific laws,
    rules or regulations.
</DIV>
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    <BR>
    60
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y93113tocpage"></A>
</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113125'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113126'>Investment Restrictions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113139'>Investment Policies and Techniques</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113140'>Other Investment Policies and Techniques</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113127'>Additional Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113128'>Management of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113129'>Portfolio Transactions and Brokerage</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113130'>Conflicts of Interest</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113131'>Description of Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113132'>Repurchase of Common Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113133'>Tax Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113134'>Independent Auditors&#146; Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113135'>Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113141'>Notes to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113136'>Appendix&#160;A Ratings of Investments</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113137'>Appendix&#160;B Proxy Voting Procedures</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113138'>Appendix&#160;C Strategic Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    C-1
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    61
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<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="y93113ey9311301.gif" alt="(BLACKROCK LOGO)">
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 18pt">15,500,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 22pt">BlackRock Utility and
    Infrastructure Trust</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Common Shares</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">$20.00 per Share</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 26%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">PROSPECTUS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">November&#160;22,
    2011</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 26%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Morgan Stanley</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Citigroup</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">BofA Merrill Lynch</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">UBS Investment Bank</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Wells Fargo
    Securities</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Ameriprise Financial Services,
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">RBC Capital Markets</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Comerica Securities</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">BB&#038;T Capital
    Markets</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Chardan Capital Markets,
    LLC</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">J.J.B. Hilliard, W.L. Lyons,
    LLC</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Janney Montgomery
    Scott</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Knight</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Ladenburg Thalmann&#160;&#038;
    Co. Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Maxim Group LLC</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Wedbush Securities
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Wunderlich Securities</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until December&#160;17, 2011 (25&#160;days after the date of
    this prospectus), all dealers that buy, sell or trade the common
    shares, whether or not participating in this offering, may be
    required to deliver a prospectus. This is in addition to the
    dealers&#146; obligations to deliver a prospectus when acting as
    underwriters and with respect to their unsold allotments or
    subscriptions.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="y93113ey9311301.gif" alt="(BLACKROCK LOGO)">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 22pt">BlackRock Utility and
    Infrastructure Trust</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">STATEMENT OF ADDITIONAL
    INFORMATION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">November&#160;22,
    2011</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock Utility and Infrastructure Trust (the
    &#147;Trust&#148;) is a non-diversified, closed-end management
    investment company with no operating history. This Statement of
    Additional Information relating to common shares does not
    constitute a prospectus, but should be read in conjunction with
    the prospectus relating thereto dated November&#160;22, 2011.
    This Statement of Additional Information (&#147;SAI&#148;),
    which is not a prospectus, does not include all information that
    a prospective investor should consider before purchasing common
    shares, and investors should obtain and read the prospectus
    prior to purchasing such shares. A copy of the prospectus may be
    obtained without charge by calling
    <FONT style="white-space: nowrap">(800)&#160;882-0052.</FONT>
    You may also obtain a copy of the prospectus on the Securities
    and Exchange Commission&#146;s website
    <FONT style="white-space: nowrap">(http://www.sec.gov).</FONT>
    Capitalized terms used but not defined in this SAI have the
    meanings ascribed to them in the prospectus.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y93113tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113125'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113126'>Investment Restrictions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113139'>Investment Policies and Techniques</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113140'>Other Investment Policies and Techniques</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113127'>Additional Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113128'>Management of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113129'>Portfolio Transactions and Brokerage</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113130'>Conflicts of Interest</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113131'>Description of Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113132'>Repurchase of Common Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113133'>Tax Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113134'>Independent Auditors&#146; Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113135'>Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113141'>Notes to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113136'>Appendix&#160;A Ratings of Investments</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113137'>Appendix&#160;B Proxy Voting Procedures</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113138'>Appendix&#160;C Strategic Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    C-1
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113125'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pending investment in securities that meet the Trust&#146;s
    investment objective and policies, the net proceeds of this
    offering will be invested in short-term debt securities of the
    type described below under &#147;Investment Policies and
    Techniques&#160;&#151; Cash Equivalents and Short-Term Debt
    Securities.&#148; If necessary to invest fully the net proceeds
    of this offering immediately, the Trust may also purchase, as
    temporary investments, securities of other open- or closed-end
    investment companies that invest primarily in securities of the
    type in which the Trust may invest directly. We currently
    anticipate that the Trust will be able to invest all of the net
    proceeds in accordance with the Trust&#146;s investment
    objective and policies within approximately three months after
    the completion of this offering.
</DIV>

<A name='Y93113126'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    RESTRICTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as described below, the Trust, as a fundamental policy,
    may not, without the approval of the holders of a majority of
    the outstanding common shares and Preferred Shares voting
    together as a single class, and of the holders of a majority of
    the outstanding Preferred Shares voting as a separate class:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;invest 25% or more of the value of its total assets in
    any one industry (except that the Trust will invest at least 25%
    of its total assets in companies operating in the industry or
    group of related industries that make up the Utilities and
    Infrastructure business segments);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;issue senior securities or borrow money other than as
    permitted by the Investment Company Act of 1940, as amended (the
    &#147;Investment Company Act&#148;) or pledge its assets other
    than to secure such issuances or in connection with hedging
    transactions, short sales, when-issued and forward commitment
    transactions and similar investment strategies;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;make loans of money or property to any person, except
    through loans of portfolio securities, the purchase of fixed
    income securities consistent with the Trust&#146;s investment
    objective and policies or the entry into repurchase agreements;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (4)&#160;underwrite the securities of other issuers, except to
    the extent that in connection with the disposition of portfolio
    securities or the sale of its own securities the Trust may be
    deemed to be an underwriter;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (5)&#160;purchase or sell real estate, except that the Trust may
    invest in securities of companies that deal in real estate or
    are engaged in the real estate business, including REITs and
    real estate operating companies, and instruments secured by real
    estate or interests therein and the Trust may acquire, hold and
    sell real estate acquired through default, liquidation, or other
    distributions of an interest in real estate as a result of the
    Trust&#146;s ownership of such other assets;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (6)&#160;purchase or sell commodities or commodity contracts for
    any purposes except as, and to the extent, permitted by
    applicable law without the Trust becoming subject to
    registration with the Commodity Futures Trading Commission as a
    commodity pool.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When used above with respect to particular shares of the Trust,
    &#147;majority of the outstanding&#148; means (i)&#160;67% or
    more of the shares present at a meeting, if the holders of more
    than 50% of the shares are present or represented by proxy, or
    (ii)&#160;more than 50% of the shares, whichever is less.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The policies enumerated above are the Trust&#146;s only
    fundamental policies that require a shareholder vote to change.
    The Trust&#146;s investment objective and all of its other
    investment policies adopted from time to time may be changed by
    the Board without shareholder approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the foregoing fundamental investment policies,
    the Trust is also subject to the following non-fundamental
    restrictions and policies, which may be changed by the Board.
    The Trust may not:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;make any short sale of securities except in conformity
    with applicable laws, rules and regulations and unless after
    giving effect to such sale, the market value of all securities
    sold short does not exceed 15% of the value of the Trust&#146;s
    total assets and the Trust&#146;s aggregate short sales of a
    particular class of securities of an
</DIV>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    issuer does not exceed 15% of the then outstanding securities of
    that class. The Trust may also make short sales &#147;against
    the box&#148; without respect to such limitations. In this type
    of short sale, at the time of the sale, the Trust owns or has
    the immediate and unconditional right to acquire at no
    additional cost the identical security;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;purchase securities of open-end or closed-end
    investment companies except in compliance with the Investment
    Company Act or any regulations promulgated or exemptive relief
    obtained thereunder;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;under normal market conditions, invest less than 80% of
    its total assets in equity securities issued by by companies
    that are engaged in the Utilities and Infrastructure business
    segments; the Trust will provide shareholders with notice at
    least 60&#160;days prior to changing this non-fundamental policy
    of the Trust unless such change was previously approved by
    shareholders;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (4)&#160;purchase securities of companies for the purpose of
    exercising control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In accordance with the Investment Company Act, the Trust may
    invest up to 10% of its total assets in securities of other
    investment companies. In addition, under the Investment Company
    Act, the Trust may not own more than 3% of the total outstanding
    voting stock of any investment company and not more than 5% of
    the value of the Trust&#146;s total assets may be invested in
    securities of any investment company. Pursuant to the Investment
    Company Act (or alternatively, pursuant to exemptive orders
    received from the Commission), these percentage limitations do
    not apply to investments in affiliated money market funds, and
    under certain circumstances, do not apply to investments in
    affiliated investment companies, including exchange traded funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The restrictions and other limitations set forth in the
    Trust&#146;s prospectus and in this SAI will apply only at the
    time of purchase of securities and will not be considered
    violated unless an excess or deficiency occurs or exists
    immediately after and as a result of the acquisition of
    securities. Any investment policy or restriction described in
    the prospectus or in this SAI is deemed to be a non-fundamental
    policy or restriction of the Trust, unless otherwise stated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, to comply with U.S.&#160;federal income tax
    requirements for qualification as a &#147;regulated investment
    company,&#148; the Trust&#146;s investments will be limited in a
    manner such that at the close of each quarter of each taxable
    year, (a)&#160;no more than 25% of the value of the Trust&#146;s
    total assets are invested in the securities (other than
    United&#160;States government securities or securities of other
    regulated investment companies) of (i)&#160;a single issuer,
    (ii)&#160;two or more issuers controlled by the Trust and
    engaged in the same, similar or related trades or businesses or
    (iii)&#160;the securities of one or more &#147;qualified
    publicly traded partnerships&#148; and (b)&#160;with regard to
    at least 50% of the Trust&#146;s total assets, no more than 5%
    of its total assets are invested in the securities (other than
    United States government securities or securities of other
    regulated investment companies) of a single issuer and such
    securities do not represent more than 10&#160;percent of the
    voting securities of such issuer. These tax-related limitations
    may be changed by the trustees to the extent appropriate in
    light of changes to applicable tax requirements.
</DIV>

<A name='Y93113139'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    POLICIES AND TECHNIQUES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following information supplements the discussion of the
    Trust&#146;s investment objective, policies and techniques that
    are described in the prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Cash
    Equivalents and Short-Term Debt Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For temporary defensive purposes or to keep cash on hand, the
    Trust may invest up to 100% of its total assets in cash
    equivalents and short-term debt securities. Cash equivalents and
    short-term debt investments are defined to include, without
    limitation, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;U.S.&#160;government securities, including bills, notes
    and bonds differing as to maturity and rates of interest that
    are either issued or guaranteed by the U.S.&#160;Treasury or by
    U.S.&#160;government agencies or instrumentalities.
    U.S.&#160;government securities include securities issued by
    (a)&#160;the Federal Housing Administration, Farmers Home
    Administration, Export Import Bank of the United States, Small
    Business Administration and Government National Mortgage
    Association, whose securities are supported by the full faith
    and credit of the United States; (b)&#160;the Federal Home Loan
    Banks, Federal Intermediate Credit Banks, and Tennessee Valley
    Authority, whose securities are supported by the right of the
    agency to borrow from the
</DIV>
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    U.S.&#160;Treasury; (c)&#160;the Federal National Mortgage
    Association, whose securities are supported by the discretionary
    authority of the U.S.&#160;government to purchase certain
    obligations of the agency or instrumentality; and (d)&#160;the
    Student Loan Marketing Association, whose securities are
    supported only by its credit. While the U.S.&#160;government
    provides financial support to such U.S.&#160;government
    sponsored agencies or instrumentalities, no assurance can be
    given that it always will do so since it is not so obligated by
    law. The U.S.&#160;government, its agencies and
    instrumentalities do not guarantee the market value of their
    securities. Consequently, the value of such securities may
    fluctuate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;Certificates of deposit issued against funds deposited
    in a bank or a savings and loan association. Such certificates
    are for a definite period of time, earn a specified rate of
    return, and are normally negotiable. The issuer of a certificate
    of deposit agrees to pay the amount deposited plus interest to
    the bearer of the certificate on the date specified thereon.
    Certificates of deposit purchased by the Trust may not be fully
    insured by the Federal Deposit Insurance Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;Repurchase agreements, which involve purchases of debt
    securities. At the time the Trust purchases securities pursuant
    to a repurchase agreement, it simultaneously agrees to resell
    and redeliver such securities to the seller, who also
    simultaneously agrees to buy back the securities at a fixed
    price and time. This assures a predetermined yield for the Trust
    during its holding period, since the resale price is always
    greater than the purchase price and reflects an
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    market rate. Such actions afford an opportunity for the Trust to
    temporarily invest available cash. The Trust may enter into
    repurchase agreements only with respect to obligations of the
    U.S.&#160;government, its agencies or instrumentalities;
    certificates of deposit; or bankers&#146; acceptances in which
    the Trust may invest. Repurchase agreements may be considered
    loans to the seller, collateralized by the underlying
    securities. The risk to the Trust is limited to the ability of
    the seller to pay the
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    sum on the repurchase date; in the event of default, the
    repurchase agreement provides that the Trust is entitled to sell
    the underlying collateral. If the value of the collateral
    declines after the agreement is entered into, and if the seller
    defaults under a repurchase agreement when the value of the
    underlying collateral is less than the repurchase price, the
    Trust could incur a loss of both principal and interest. The
    Advisors monitor the value of the collateral at the time the
    action is entered into and on a daily basis during the term of
    the repurchase agreement. The Advisors do so in an effort to
    determine that the value of the collateral always equals or
    exceeds the
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    repurchase price to be paid to the Trust. If the seller were to
    be subject to a federal bankruptcy proceeding, the ability of
    the Trust to liquidate the collateral could be delayed or
    impaired because of certain provisions of the bankruptcy laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (4)&#160;Commercial paper, which consists of short-term
    unsecured promissory notes, including variable rate master
    demand notes issued by corporations to finance their current
    operations. Master demand notes are direct lending arrangements
    between the Trust and a corporation. There is no secondary
    market for such notes. However, they are redeemable by the Trust
    at any time. The Advisors will consider the financial condition
    of the corporation (e.g., earning power, cash flow and other
    liquidity ratios) and will continually monitor the
    corporation&#146;s ability to meet all of its financial
    obligations, because the Trust&#146;s liquidity might be
    impaired if the corporation were unable to pay principal and
    interest on demand. Investments in commercial paper will be
    limited to commercial paper rated in the highest categories by a
    major rating agency and which mature within one year of the date
    of purchase or carry a variable or floating rate of interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (5)&#160;Money market funds, which are a type of mutual fund
    that is required by law to invest in low risk securities. Money
    market funds typically invest in government securities,
    certificates of deposits, commercial paper of companies, and
    other highly liquid and low risk securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Equity
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    While the Trust will primarily invest in common stocks, it may
    also invest in other equity securities, including preferred
    stocks, convertible securities, warrants and depository receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Preferred Stock.</I>&#160;&#160;Preferred stock has a
    preference over common stock in liquidation (and, generally,
    dividends as well) but is subordinated to the liabilities of the
    issuer in all respects. As a general rule, the market value of
    preferred stock with a fixed dividend rate and no conversion
    element varies inversely with interest rates and perceived
    credit risk, while the market price of convertible preferred
    stock generally also reflects some element of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    conversion value. Because preferred stock is junior to debt
    securities and other obligations of the issuer, deterioration in
    the credit quality of the issuer will cause greater changes in
    the value of a preferred stock than in a more senior debt
    security with similar stated yield characteristics. Unlike
    interest payments on debt securities, preferred stock dividends
    are payable only if declared by the issuer&#146;s board of
    directors. Preferred stock also may be subject to optional or
    mandatory redemption provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Convertible Securities.</I>&#160;&#160;A convertible security
    is a bond, debenture, note, preferred stock or other security
    that may be converted into or exchanged for a prescribed amount
    of common stock or other equity security of the same or a
    different issuer within a particular period of time at a
    specified price or formula. A convertible security entitles the
    holder to receive interest paid or accrued on debt or the
    dividend paid on preferred stock until the convertible security
    matures or is redeemed, converted or exchanged. Before
    conversion, convertible securities have characteristics similar
    to nonconvertible income securities in that they ordinarily
    provide a stable stream of income with generally higher yields
    than those of common stocks of the same or similar issuers, but
    lower yields than comparable nonconvertible securities. The
    value of a convertible security is influenced by changes in
    interest rates, with investment value declining as interest
    rates increase and increasing as interest rates decline. The
    credit standing of the issuer and other factors also may have an
    effect on the convertible security&#146;s investment value.
    Convertible securities rank senior to common stock in a
    corporation&#146;s capital structure but are usually
    subordinated to comparable nonconvertible securities.
    Convertible securities may be subject to redemption at the
    option of the issuer at a price established in the convertible
    security&#146;s governing instrument.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Warrants.</I>&#160;&#160;Warrants, which are privileges
    issued by corporations enabling the owners to subscribe to and
    purchase a specified number of shares of the corporation at a
    specified price during a specified period of time. Subscription
    rights normally have a short life span to expiration. The
    purchase of warrants involves the risk that the Trust could lose
    the purchase value of a right or warrant if the right to
    subscribe to additional shares is not exercised prior to the
    warrants&#146; expiration. Also, the purchase of warrants
    involves the risk that the effective price paid for the warrant
    added to the subscription price of the related security may
    exceed the value of the subscribed security&#146;s market price,
    such as when there is no movement in the level of the underlying
    security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Depository Receipts.</I>&#160;&#160;The Trust may invest in
    both sponsored and unsponsored American Depository Receipts
    (&#147;ADRs&#148;), European Depository Receipts
    (&#147;EDRs&#148;), Global Depository Receipts
    (&#147;GDRs&#148;) and other similar global instruments. ADRs
    typically are issued by an American bank or trust company and
    evidence ownership of underlying securities issued by a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation.</FONT>
    EDRs, which are sometimes referred to as Continental Depository
    Receipts, are receipts issued in Europe, typically by
    <FONT style="white-space: nowrap">non-U.S.&#160;banks</FONT>
    and trust companies, that evidence ownership of either
    <FONT style="white-space: nowrap">non-U.S.&#160;or</FONT>
    domestic underlying securities. GDRs are depository receipts
    structured like global debt issues to facilitate trading on an
    international basis. Unsponsored ADR, EDR and GDR programs are
    organized independently and without the cooperation of the
    issuer of the underlying securities. As a result, available
    information concerning the issuer may not be as current as for
    sponsored ADRs, EDRs and GDRs, and the prices of unsponsored
    ADRs, EDRs and GDRs may be more volatile than if such
    instruments were sponsored by the issuer. Investments in ADRs,
    EDRs and GDRs present additional investment considerations of
    <FONT style="white-space: nowrap">non-U.S.&#160;securities.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Master
    Limited Partnership Interests</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Equity securities issued by MLPs currently consist of common
    units, subordinated units and preferred units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>MLP Common Units.</I>&#160;&#160;MLP common units represent a
    limited partnership interest in the MLP. Common units are listed
    and traded on U.S.&#160;securities exchanges or
    <FONT style="white-space: nowrap">over-the-counter,</FONT>
    with their value fluctuating predominantly based on prevailing
    market conditions and the success of the MLP. We intend to
    purchase common units in market transactions as well as directly
    from the MLP or other parties. Unlike owners of common stock of
    a corporation, owners of common units have limited voting rights
    and have no ability annually to elect directors. MLPs generally
    distribute all available cash flow (cash flow from operations
    less maintenance capital expenditures) in the form of quarterly
    distributions. Common units along with general partner units,
    have first priority to receive quarterly cash distributions up
    to the MQD and have arrearage rights. In the event of
    liquidation, common units have preference over subordinated
    units, but not debt or preferred units, to the remaining assets
    of the MLP.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>MLP Subordinated Units.</I>&#160;&#160;MLP subordinated units
    are typically not listed on an exchange or publicly traded. The
    Trust will typically purchase MLP subordinated units through
    negotiated transactions directly with affiliates of MLPs and
    institutional holders of such units or will purchase newly
    issued subordinated units directly from MLPs. Holders of MLP
    subordinated units are entitled to receive minimum quarterly
    distributions after payments to holders of common units have
    been satisfied and prior to incentive distributions to the
    general partner. MLP subordinated units do not provide arrearage
    rights. Subordinated units typically have limited voting rights
    similar to common units. Most MLP subordinated units are
    convertible into common units after the passage of a specified
    period of time or upon the achievement by the MLP of specified
    financial goals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>MLP Preferred Units.</I>&#160;&#160;MLP preferred units are
    typically not listed on an exchange or publicly traded. The
    Trust will typically purchase MLP preferred units through
    negotiated transactions directly with MLPs, affiliates of MLPs
    and institutional holders of such units. Holders of MLP
    preferred units can be entitled to a wide range of voting and
    other rights, depending on the structure of each separate
    security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>I-Shares.</I>&#160;&#160;I-Shares represent an ownership
    interest issued by an affiliated party of an MLP. The MLP
    affiliate uses the proceeds from the sale of I-Shares to
    purchase limited partnership interests in the MLP in the form of
    <FONT style="white-space: nowrap">i-units.</FONT>
    <FONT style="white-space: nowrap">I-units</FONT> have
    similar features as MLP common units in terms of voting rights,
    liquidation preference and distributions. However, rather than
    receiving cash, the MLP affiliate receives additional
    <FONT style="white-space: nowrap">i-units</FONT> in
    an amount equal to the cash distributions received by MLP common
    units. Similarly, holders of I-Shares will receive additional
    I-Shares, in the same proportion as the MLP affiliates receipt
    of <FONT style="white-space: nowrap">i-units,</FONT>
    rather than cash distributions. I-Shares themselves have limited
    voting rights which are similar to those applicable to MLP
    common units. The MLP affiliate issuing the I-Shares is
    structured as a corporation for federal income tax purposes.
    I-Shares are traded on the New York Stock Exchange (the
    &#147;NYSE&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Structured
    Products</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in structured products, including
    instruments such as credit-linked securities and structured
    notes, which are potentially high-risk derivatives. For example,
    a structured product may combine a traditional stock, bond, or
    commodity with an option or forward contract. Generally, the
    principal amount, amount payable upon maturity or redemption, or
    interest rate of a structured product is tied (positively or
    negatively) to the price of some security, currency or index or
    another interest rate or some other economic factor (each a
    &#147;benchmark&#148;). The interest rate or (unlike most fixed
    income securities) the principal amount payable at maturity of a
    structured product may be increased or decreased, depending on
    changes in the value of the benchmark.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Structured products can be used as an efficient means of
    pursuing a variety of investment goals, including currency
    hedging, duration management, and increased total return.
    Structured products may not bear interest or pay dividends. The
    value of a structured product or its interest rate may be a
    multiple of a benchmark and, as a result, may be leveraged and
    move (up or down) more steeply and rapidly than the benchmark.
    These benchmarks may be sensitive to economic and political
    events, such as commodity shortages and currency devaluations,
    which cannot be readily foreseen by the purchaser of a
    structured product. Under certain conditions, the redemption
    value of a structured product could be zero. Thus, an investment
    in a structured product may entail significant market risks that
    are not associated with a similar investment in a traditional,
    U.S.&#160;dollar-denominated bond that has a fixed principal
    amount and pays a fixed rate or floating rate of interest. The
    purchase of structured products also exposes the Trust to the
    credit risk of the issuer of the structured product. These risks
    may cause significant fluctuations in the net asset value of the
    Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Structured Notes and Indexed
    Securities.</I>&#160;&#160;Structured notes are derivative debt
    instruments, the interest rate or principal of which is
    determined by an unrelated indicator (for example, a currency,
    security, commodity or index thereof). The terms of the
    instrument may be &#147;structured&#148; by the purchaser and
    the borrower issuing the note. Indexed securities may include
    structured notes as well as securities other than debt
    securities, the interest rate or principal of which is
    determined by an unrelated indicator. Indexed securities may
    include a multiplier that multiplies the indexed element by a
    specified factor and, therefore, the value of such securities
    may be very volatile. The terms of structured notes and indexed
    securities may provide that in certain circumstances no
    principal is due at maturity, which may result in a loss of
    invested capital. Structured notes and indexed securities may be
    positively or negatively indexed, so that appreciation of the
    unrelated indicator may produce an increase or a decrease in the
</DIV>
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    interest rate or the value of the structured note or indexed
    security at maturity may be calculated as a specified multiple
    of the change in the value of the unrelated indicator.
    Therefore, the value of such notes and securities may be very
    volatile. Structured notes and indexed securities may entail a
    greater degree of market risk than other types of debt
    securities because the investor bears the risk of the unrelated
    indicator. Structured notes or indexed securities also may be
    more volatile, less liquid, and more difficult to accurately
    price than less complex securities and instruments or more
    traditional debt securities. The Trust currently does not intend
    to invest in structured notes that involve leverage.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain issuers of structured products may be deemed to be
    investment companies as defined in the Investment Company Act.
    As a result, the Trust&#146;s investments in these structured
    products may be subject to limits applicable to investments in
    investment companies and may be subject to restrictions
    contained in the Investment Company Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Strategic
    Transactions and Risk Management</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Consistent with its investment objective and policies set forth
    herein and in its prospectus, and in addition to its option
    strategy, the Trust may also enter into certain transactions in
    an effort to hedge all or a portion of the portfolio or to seek
    to enhance the Trust&#146;s total returns. In particular, the
    Trust may purchase and sell futures contracts, exchange listed
    and
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    call and put options on securities, equity and other indices and
    futures contracts, forward foreign currency contracts, and may
    enter into various derivative transactions (collectively,
    &#147;Strategic Transactions&#148;). Strategic Transactions may
    be used to attempt to protect against possible changes in the
    market value of the Trust&#146;s portfolio resulting from
    fluctuations in the securities markets and changes in interest
    rates, to protect the Trust&#146;s unrealized gains in the value
    of its portfolio securities, to facilitate the sale of such
    securities for investment purposes and to establish a position
    in the securities markets as a temporary substitute for
    purchasing particular securities. Any or all of these Strategic
    Transactions may be used at any time. There is no particular
    strategy that requires use of one technique rather than another.
    Use of any Strategic Transaction is a function of market
    conditions. The ability of the Trust to manage them successfully
    will depend on the Advisors&#146; ability to predict pertinent
    market movements as well as sufficient correlation among the
    instruments, which cannot be assured. The Strategic Transactions
    that the Trust may use are described below. Although the Trust
    recognizes it is not likely that it will use certain of these
    strategies in light of its investment policies, it nevertheless
    describes them here because the Trust may seek to use these
    strategies in certain circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Puts on Securities, Indices and Futures
    Contracts.</I>&#160;&#160;In addition to its option strategy,
    the Trust may purchase put options (&#147;puts&#148;) that
    relate to securities (whether or not it holds such securities in
    its portfolio), indices or futures contracts. For the same
    purposes, the Trust may also sell puts on securities, indices or
    futures contracts on such securities if the Trust&#146;s
    contingent obligations on such puts are secured by segregated
    assets consisting of cash or liquid debt securities having a
    value not less than the exercise price. In selling puts, there
    is a risk that the Trust may be required to buy the underlying
    security at a price higher than the current market price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Forward Foreign Currency Contracts.</I>&#160;&#160;The Trust
    may enter into forward currency contracts to purchase or sell
    foreign currencies for a fixed amount of U.S.&#160;dollars or
    another foreign currency. A forward currency contract involves
    an obligation to purchase or sell a specific currency at a
    future date, which may be any fixed number of days (term) from
    the date of the forward currency contract agreed upon by the
    parties, at a price set at the time the forward currency
    contract is entered into. Forward currency contracts are traded
    directly between currency traders (usually large commercial
    banks) and their customers. The Trust may purchase a forward
    currency contract to lock in the U.S.&#160;dollar price of a
    security denominated in a foreign currency that the Trust
    intends to acquire. The Trust may sell a forward currency
    contract to lock in the U.S.&#160;dollar equivalent of the
    proceeds from the anticipated sale of a security or a dividend
    or interest payment denominated in a foreign currency. The Trust
    may also use forward currency contracts to shift the
    Trust&#146;s exposure to foreign currency exchange rate changes
    from one currency to another. For example, if the Trust owns
    securities denominated in a foreign currency and the Advisors
    believe that currency will decline relative to another currency,
    the Trust might enter into a forward currency contract to sell
    the appropriate amount of the first foreign currency with
    payment to be made in the second currency. The Trust may also
    purchase forward currency contracts to enhance income when the
    Advisors anticipate that the foreign currency will appreciate in
    value but securities denominated in that currency do not present
    attractive investment opportunities. The Trust may also use
    forward currency contracts to offset against a decline in the
    value of existing investments denominated in a foreign currency.
    Such a transaction would tend to offset both positive and
    negative
</DIV>
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    currency fluctuations, but would not offset changes in security
    values caused by other factors. The Trust could also enter into
    a forward currency contract to sell another currency expected to
    perform similarly to the currency in which the Trust&#146;s
    existing investments are denominated. This type of transaction
    could offer advantages in terms of cost, yield or efficiency,
    but may not offset currency exposure as effectively as a simple
    forward currency transaction to sell U.S.&#160;dollars. This
    type of transaction may result in losses if the currency sold
    does not perform similarly to the currency in which the
    Trust&#146;s existing investments are denominated. The Trust may
    also use forward currency contracts in one currency or a basket
    of currencies to attempt to offset against fluctuations in the
    value of securities denominated in a different currency if the
    Advisors anticipate that there will be a correlation between the
    two currencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The cost to the Trust of engaging in forward currency contracts
    varies with factors such as the currency involved, the length of
    the contract period and the market conditions then prevailing.
    Because forward currency contracts are usually entered into on a
    principal basis, no fees or commissions are involved. When the
    Trust enters into a forward currency contract, it relies on the
    counterparty to make or take delivery of the underlying currency
    at the maturity of the contract. Failure by the counterparty to
    do so would result in the loss of some or all of any expected
    benefit of the transaction. Secondary markets generally do not
    exist for forward currency contracts, with the result that
    closing transactions generally can be made for forward currency
    contracts only by negotiating directly with the counterparty.
    Thus, there can be no assurance that the Trust will in fact be
    able to close out a forward currency contract at a favorable
    price prior to maturity. In addition, in the event of insolvency
    of the counterparty, the Trust might be unable to close out a
    forward currency contract. In either event, the Trust would
    continue to be subject to market risk with respect to the
    position, and would continue to be required to maintain a
    position in securities denominated in the foreign currency or to
    maintain cash or liquid assets in a segregated account. The
    precise matching of forward currency contract amounts and the
    value of the securities involved generally will not be possible
    because the value of such securities, measured in the foreign
    currency, will change after the forward currency contract has
    been established. Thus, the Trust might need to purchase or sell
    foreign currencies in the spot (cash) market to the extent such
    foreign currencies are not covered by forward currency
    contracts. The projection of short-term currency market
    movements is extremely difficult, and the successful execution
    of a short-term strategy is highly uncertain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Futures Contracts and Options on Futures
    Contracts.</I>&#160;&#160;In connection with its hedging and
    other risk management strategies, the Trust may also enter into
    contracts for the purchase or sale for future delivery
    (&#147;futures contracts&#148;) of securities, aggregates of
    securities or indices or prices thereof, other financial indices
    and U.S.&#160;government debt securities or options on the
    above. The Trust primarily intends to engage in such
    transactions for bona fide risk management and other portfolio
    management purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Calls on Securities, Indices and Futures
    Contracts.</I>&#160;&#160;In addition to its option strategy, in
    order to enhance income or reduce fluctuations on net asset
    value, the Trust may sell or purchase call options
    (&#147;calls&#148;) on securities and indices based upon the
    prices of futures contracts and debt or equity securities that
    are traded on U.S.&#160;and
    <FONT style="white-space: nowrap">non-U.S.&#160;securities</FONT>
    exchanges and in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets. A call option gives the purchaser of the option the
    right to buy, and obligates the seller to sell, the underlying
    security, futures contract or index at the exercise price at any
    time or at a specified time during the option period. All such
    calls sold by the Trust must be &#147;covered&#148; as long as
    the call is outstanding (i.e., the Trust must own the instrument
    subject to the call or other securities or assets acceptable for
    applicable segregation and coverage requirements). A call sold
    by the Trust exposes the Trust during the term of the option to
    possible loss of opportunity to realize appreciation in the
    market price of the underlying security, index or futures
    contract and may require the Trust to hold an instrument which
    it might otherwise have sold. The purchase of a call gives the
    Trust the right to buy a security, futures contract or index at
    a fixed price. Calls on futures on securities must also be
    covered by assets or instruments acceptable under applicable
    segregation and coverage requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Interest Rate Transactions.</I>&#160;&#160;The Trust may
    enter into interest rate swaps and purchase or sell interest
    rate caps and floors primarily to preserve a return or spread on
    a particular investment or portion of its portfolio as a
    duration management technique or to protect against any increase
    in the price of securities the Trust anticipates purchasing at a
    later date. The Trust intends to use these transactions for risk
    management purposes and not as a speculative investment. The
    Trust will not sell interest rate caps or floors that it does
    not own. Interest rate swaps involve the exchange by the Trust
    with another party of their respective commitments to pay or
    receive interest, e.g., an
</DIV>
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    exchange of floating rate payments for fixed rate payments with
    respect to a notional amount of principal. The purchase of an
    interest rate cap entitles the purchaser, to the extent that a
    specified index exceeds a predetermined interest rate, to
    receive payments of interest on a notional principal amount from
    the party selling such interest rate cap. The purchase of an
    interest rate floor entitles the purchaser, to the extent that a
    specified index falls below a predetermined interest rate, to
    receive payments of interest on a notional principal amount from
    the party selling such interest rate floor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may enter into interest rate swaps, caps and floors on
    either an asset-based or liability-based basis, depending on
    whether it is offsetting volatility with respect to its assets
    or liabilities, and will usually enter into interest rate swaps
    on a net basis, i.e., the two payment streams are netted out,
    with the Trust receiving or paying, as the case may be, only the
    net amount of the two payments on the payment dates. Inasmuch as
    these Strategic Transactions are entered into for good faith
    risk management purposes, the Advisors and the Trust believe
    such obligations do not constitute senior securities, and,
    accordingly, will not treat them as being subject to its
    borrowing restrictions. The Trust will accrue the net amount of
    the excess, if any, of the Trust&#146;s obligations over its
    entitlements with respect to each interest rate swap on a daily
    basis and will designate on its books and records with a
    custodian an amount of cash or liquid high grade securities
    having an aggregate net asset value at all times at least equal
    to the accrued excess. The Trust will not enter into any
    interest rate swap, cap or floor transaction unless the
    unsecured senior debt or the claims-paying ability of the other
    party thereto is rated in the highest rating category of at
    least one nationally recognized statistical rating organization
    at the time of entering into such transaction. If there is a
    default by the other party to such a transaction, the Trust will
    have contractual remedies pursuant to the agreements related to
    the transaction. The swap market has grown substantially in
    recent years with a large number of banks and investment banking
    firms acting both as principals and as agents utilizing
    standardized swap documentation. Caps and floors are more recent
    innovations for which standardized documentation has not yet
    been developed and, accordingly, they are less liquid than swaps.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Credit Default Swap Agreements and Similar
    Instruments.</I>&#160;&#160;The Trust may enter into credit
    default swap agreements, a type of derivative, for hedging
    purposes or to seek to increase its returns. The credit default
    swap agreement may have as reference obligations one or more
    securities that are not currently held by the Trust. The Trust
    enters into credit default agreements to provide a measure of
    protection against the default of an issuer (as buyer of
    protection)
    <FONT style="white-space: nowrap">and/or</FONT> gain
    credit exposure to an issuer to which it is not otherwise
    exposed (as seller of protection). The Trust may either buy or
    sell (write) credit default swaps on single-name issuers or
    traded indexes. Credit default swaps on single-name issuers are
    agreements in which the buyer pays fixed periodic payments to
    the seller in consideration for a guarantee from the seller to
    make a specific payment should a negative credit event take
    place (e.g., bankruptcy, failure to pay, obligation
    accelerators, repudiation, moratorium or restructuring). Credit
    default swaps on traded indexes are agreements in which the
    buyer pays fixed periodic payments to the seller in
    consideration for a guarantee from the seller to make a specific
    payment should a write-down, principal or interest shortfall or
    default of all or individual underlying securities included in
    the index occur. As a buyer, if an underlying credit event
    occurs, the Trust will either receive from the seller an amount
    equal to the notional amount of the swap and deliver the
    referenced security or underlying securities comprising of an
    index or receive a net settlement of cash equal to the notional
    amount of the swap less the recovery value of the security or
    underlying securities comprising of an index. As a seller
    (writer), if an underlying credit event occurs, the Trust will
    either pay the buyer an amount equal to the notional amount of
    the swap and take delivery of the referenced security or
    underlying securities comprising an index or pay a net
    settlement of cash equal to the notional amount of the swap less
    the recovery value of the security or underlying securities
    comprising of an index.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Credit Linked Securities.</I>&#160;&#160;Credit-linked
    securities are issued by a limited purpose trust or other
    vehicle that, in turn, invests in a basket of derivative
    instruments, such as credit default swaps, interest rate swaps,
    and other securities, in order to provide exposure to certain
    high yield or other fixed income markets. A credit-linked
    security is a synthetic obligation between two or more parties
    where the payment of principal
    <FONT style="white-space: nowrap">and/or</FONT>
    interest is based on the performance of some obligation (a
    reference obligation). Like an investment in a bond, investments
    in credit-linked securities represent the right to receive
    periodic income payments (in the form of distributions) and
    payment of principal at the end of the term of the security.
    However, these payments are conditioned on the issuing
    trust&#146;s receipt of payments from, and the issuing
    trust&#146;s potential obligations to, the counterparties to the
    derivative instruments and other securities in which the issuing
    trust invests. For instance, the issuing trust may sell one or
</DIV>
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    more credit default swaps, under which the issuing trust would
    receive a stream of payments over the term of the swap
    agreements provided that no event of default has occurred with
    respect to the referenced debt obligation upon which the swap is
    based. If a default occurs, the stream of payments may stop and
    the issuing trust would be obligated to pay the counterparty the
    par (or other agreed upon value) of the referenced debt
    obligation. This, in turn, would reduce the amount of income and
    principal that the Trust would receive as an investor in the
    Trust. The Trust&#146;s investments in these instruments are
    indirectly subject to the risks associated with derivative
    instruments, including, among others, credit risk, default or
    similar event risk, counterparty risk, interest rate risk,
    leverage risk and management risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Total Return Swap Agreements.</I>&#160;&#160;Total return
    swap agreements are contracts in which one party agrees to make
    periodic payments to another party based on the change in market
    value of the assets underlying the contract, which may include a
    specified security, basket of securities or securities indices
    during the specified period, in return for periodic payments
    based on a fixed or variable interest rate or the total return
    from other underlying assets. Total return swap agreements may
    be used to obtain exposure to a security or market without
    owning or taking physical custody of such security or investing
    directly in such market. Total return swap agreements may
    effectively add leverage to the Trust&#146;s portfolio because,
    in addition to its total net assets, the Trust would be subject
    to investment exposure on the notional amount of the swap.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Total return swap agreements are subject to the risk that a
    counterparty will default on its payment obligations to the
    Trust thereunder. Swap agreements also bear the risk that the
    Trust will not be able to meet its obligation to the
    counterparty. Generally, the Trust will enter into total return
    swaps on a net basis (i.e., the two payment streams are netted
    against one another with the Trust receiving or paying, as the
    case may be, only the net amount of the two payments). The net
    amount of the excess, if any, of the Trust&#146;s obligations
    over its entitlements with respect to each total return swap
    will be accrued on a daily basis, and an amount of liquid assets
    having an aggregate net asset value at least equal to the
    accrued excess will be segregated by the Trust. If the total
    return swap transaction is entered into on other than a net
    basis, the full amount of the Trust&#146;s obligations will be
    accrued on a daily basis, and the full amount of the
    Trust&#146;s obligations will be segregated by the Trust in an
    amount equal to or greater than the market value of the
    liabilities under the total return swap agreement or the amount
    it would have cost the Trust initially to make an equivalent
    direct investment, plus or minus any amount the Trust is
    obligated to pay or is to receive under the total return swap
    agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Credit Derivatives.</I>&#160;&#160;The Trust may engage in
    credit derivative transactions. There are two broad categories
    of credit derivatives: default price risk derivatives and market
    spread derivatives. Default price risk derivatives are linked to
    the price of reference securities or loans after a default by
    the issuer or borrower, respectively. Market spread derivatives
    are based on the risk that changes in market factors, such as
    credit spreads, can cause a decline in the value of a security,
    loan or index. There are three basic transactional forms for
    credit derivatives: swaps, options and structured instruments.
    The use of credit derivatives is a highly specialized activity
    which involves strategies and risks different from those
    associated with ordinary portfolio security transactions. If the
    Advisors are incorrect in their forecasts of default risks,
    market spreads or other applicable factors, the investment
    performance of the Trust would diminish compared with what it
    would have been if these techniques were not used. Moreover,
    even if the Advisors are correct in their forecasts, there is a
    risk that a credit derivative position may correlate imperfectly
    with the price of the asset or liability being hedged. There is
    no limit on the amount of credit derivative transactions that
    may be entered into by the Trust. The Trust&#146;s risk of loss
    in a credit derivative transaction varies with the form of the
    transaction. For example, if the Trust purchases a default
    option on a security, and if no default occurs with respect to
    the security, the Trust&#146;s loss is limited to the premium it
    paid for the default option. In contrast, if there is a default
    by the grantor of a default option, the Trust&#146;s loss will
    include both the premium that it paid for the option and the
    decline in value of the underlying security that the default
    option hedged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>New Products.</I>&#160;&#160;The financial markets continue
    to evolve and financial products continue to be developed. The
    Trust reserves the right to invest in new financial products as
    they are developed or become more widely accepted. As with any
    new financial product, these products will entail risks,
    including risks to which the Trust currently is not subject.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Appendix&#160;C contains further information about the
    characteristics, risks and possible benefits of Strategic
    Transactions and the Trust&#146;s other policies and limitations
    (which are not fundamental policies) relating to
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    investment in futures contracts and options. The principal risks
    relating to the use of futures contracts and other Strategic
    Transactions are: (a)&#160;less than perfect correlation between
    the prices of the instrument and the market value of the
    securities in the Trust&#146;s portfolio; (b)&#160;possible lack
    of a liquid secondary market for closing out a position in such
    instruments; (c)&#160;losses resulting from interest rate or
    other market movements not anticipated by the Advisor; and
    (d)&#160;the obligation to meet additional variation margin or
    other payment requirements, all of which could result in the
    Trust being in a worse position than if such techniques had not
    been used.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain provisions of the Code may restrict or affect the
    ability of the Trust to engage in Strategic Transactions. See
    &#147;Tax Matters.&#148;
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    INVESTMENT POLICIES AND TECHNIQUES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Restricted
    and Illiquid Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of the Trust&#146;s investments may be illiquid.
    Illiquid securities are subject to legal or contractual
    restrictions on disposition or lack an established secondary
    trading market. The sale of restricted and illiquid securities
    often requires more time and results in higher brokerage charges
    or dealer discounts and other selling expenses than does the
    sale of securities eligible for trading on national securities
    exchanges or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets. Restricted securities may sell at a price lower than
    similar securities that are not subject to restrictions on
    resale.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">When-Issued
    and Forward Commitment Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may purchase securities on a &#147;when-issued&#148;
    basis and may purchase or sell securities on a &#147;forward
    commitment&#148; basis in order to acquire the security or to
    offset against anticipated changes in interest rates and prices.
    When such transactions are negotiated, the price, which is
    generally expressed in yield terms, is fixed at the time the
    commitment is made, but delivery and payment for the securities
    take place at a later date. When-issued securities and forward
    commitments may be sold prior to the settlement date, but the
    Trust will enter into when-issued and forward commitments only
    with the intention of actually receiving or delivering the
    securities, as the case may be. If the Trust disposes of the
    right to acquire a when-issued security prior to its acquisition
    or disposes of its right to deliver or receive against a forward
    commitment, it might incur a gain or loss. At the time the Trust
    enters into a transaction on a when-issued or forward commitment
    basis, it will designate on its books and records cash or liquid
    debt securities equal to at least the value of the when-issued
    or forward commitment securities. The value of these assets will
    be monitored daily to ensure that their marked to market value
    will at all times equal or exceed the corresponding obligations
    of the Trust. There is always a risk that the securities may not
    be delivered and that the Trust may incur a loss. Settlements in
    the ordinary course, which may take substantially more than five
    business days, are not treated by the Trust as when-issued or
    forward commitment transactions and, accordingly, are not
    subject to the foregoing restrictions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Reverse
    Repurchase Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may enter into reverse repurchase agreements with
    respect to its portfolio investments subject to the investment
    restrictions set forth herein. Reverse repurchase agreements
    involve the sale of securities held by the Trust with an
    agreement by the Trust to repurchase the securities at an agreed
    upon price, date and interest payment. At the time the Trust
    enters into a reverse repurchase agreement, it may designate on
    its books and records liquid instruments having a value not less
    than the repurchase price (including accrued interest). If the
    Trust establishes and maintains such a segregated account, a
    reverse repurchase agreement will not be considered a borrowing
    by the Trust; however, under certain circumstances in which the
    Trust does not establish and maintain such a segregated account,
    such reverse repurchase agreement will be considered a borrowing
    for the purpose of the Trust&#146;s limitation on borrowings.
    The use by the Trust of reverse repurchase agreements involves
    many of the same risks of leverage since the proceeds derived
    from such reverse repurchase agreements may be invested in
    additional securities. Reverse repurchase agreements involve the
    risk that the market value of the securities acquired in
    connection with the reverse repurchase agreement may decline
    below the price of the securities the Trust has sold but is
    obligated to
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    repurchase. Also, reverse repurchase agreements involve the risk
    that the market value of the securities retained in lieu of sale
    by the Trust in connection with the reverse repurchase agreement
    may decline in price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the buyer of securities under a reverse repurchase agreement
    files for bankruptcy or becomes insolvent, such buyer or its
    trustee or receiver may receive an extension of time to
    determine whether to enforce the Trust&#146;s obligation to
    repurchase the securities, and the Trust&#146;s use of the
    proceeds of the reverse repurchase agreement may effectively be
    restricted pending such decision. Also, the Trust would bear the
    risk of loss to the extent that the proceeds of the reverse
    repurchase agreement are less than the value of the securities
    subject to such agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Repurchase
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As temporary investments, the Trust may invest in repurchase
    agreements. A repurchase agreement is a contractual agreement
    whereby the seller of securities agrees to repurchase the same
    security at a specified price on a future date agreed upon by
    the parties. The
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    repurchase price determines the yield during the Trust&#146;s
    holding period. Repurchase agreements are considered to be loans
    collateralized by the underlying security that is the subject of
    the repurchase contract. The Trust will only enter into
    repurchase agreements with registered securities dealers or
    domestic banks that, in the opinion of the Advisors, present
    minimal credit risk. The risk to the Trust is limited to the
    ability of the issuer to pay the
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    repurchase price on the delivery date; however, although the
    value of the underlying collateral at the time the transaction
    is entered into always equals or exceeds the
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    repurchase price, if the value of the collateral declines, there
    is a risk of loss of both principal and interest. In the event
    of default, the collateral may be sold but the Trust might incur
    a loss if the value of the collateral declines, and might incur
    disposition costs or experience delays in connection with
    liquidating the collateral. In addition, if bankruptcy
    proceedings are commenced with respect to the seller of the
    security, realization upon the collateral by the Trust may be
    delayed or limited. The Advisors will monitor the value of the
    collateral at the time the transaction is entered into and at
    all times subsequent during the term of the repurchase agreement
    in an effort to determine that such value always equals or
    exceeds the
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    repurchase price. In the event the value of the collateral
    declines below the repurchase price, the Advisors will demand
    additional collateral from the issuer to increase the value of
    the collateral to at least that of the repurchase price,
    including interest.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Short
    Sales</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    While the Trust does not currently intend to engage in short
    sales of securities, the Trust is permitted to engage in such
    transactions. A short sale is a transaction in which the Trust
    sells a security it does not own in anticipation that the market
    price of that security will decline. The Trust may make short
    sales for risk management purposes, to maintain portfolio
    flexibility or to seek to enhance total return.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When the Trust makes a short sale, it must borrow the security
    sold short and deliver it to the broker-dealer through which it
    made the short sale as collateral for its obligation to deliver
    the security upon conclusion of the sale. The Trust may have to
    pay a fee to borrow particular securities and is often obligated
    to pay over any payments received on such borrowed securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s obligation to replace the borrowed security
    will be secured by collateral deposited with the broker-dealer,
    usually cash, U.S.&#160;government securities or other liquid
    securities. The Trust will also be required to designate on its
    books and records similar collateral with its custodian to the
    extent, if any, necessary so that the aggregate collateral value
    is at all times at least equal to the current market value of
    the security sold short. Depending on arrangements made with the
    broker-dealer from which it borrowed the security regarding
    payment over of any payments received by the Trust on such
    security, the Trust may not receive any payments (including
    interest) on its collateral deposited with such broker-dealer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the price of the security sold short increases between the
    time of the short sale and the time the Trust replaces the
    borrowed security, the Trust will incur a loss; conversely, if
    the price declines, the Trust will realize a gain. Any gain will
    be decreased, and any loss increased, by the transaction costs
    described above. Although the Trust&#146;s gain is limited to
    the price at which it sold the security short, its potential
    loss is theoretically unlimited. There can be no assurance that
    the securities necessary to cover a short position will be
    available for purchase. Purchasing securities to close out the
    short position can itself cause the price of the securities to
    rise further, thereby exacerbating the loss.
</DIV>
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    <BR>
    A-12
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust will not make a short sale if, after giving effect to
    such sale, the market value of all securities sold short exceeds
    15% of the value of its total assets or the Trust&#146;s
    aggregate short sales of a particular class of securities of an
    issuer exceeds 15% of the issuer&#146;s outstanding securities
    of that class. The Trust may also make short sales &#147;against
    the box&#148; without respect to such limitations. In this type
    of short sale, at the time of the sale, the Trust owns or has
    the immediate and unconditional right to acquire at no
    additional cost the identical security.
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    RISK FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in preferred stock. Preferred stocks are
    unique securities that combine some of the characteristics of
    both common stocks and bonds. Preferred stocks generally pay a
    fixed rate of return and are sold on the basis of current yield,
    like bonds. However, because they are equity securities,
    preferred stock provides equity ownership of a company, and the
    income is paid in the form of dividends. Preferred stocks
    typically have a yield advantage over common stocks as well as
    comparably-rated fixed income investments. Preferred stocks are
    typically subordinated to bonds and other debt instruments in a
    company&#146;s capital structure, in terms of priority to
    corporate income, and therefore will be subject to greater
    credit risk than those debt instruments. Unlike interest
    payments on debt securities, preferred stock dividends are
    payable only if declared by the issuer&#146;s board of
    directors. Preferred stocks also may be subject to optional or
    mandatory redemption provisions. Certain of the preferred stocks
    in which the Trust may invest may be convertible preferred
    stocks, which have risks similar to convertible securities as
    described below in &#147;&#151;&#160;Convertible Securities
    Risk.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Convertible
    Securities Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may invest in convertible securities. A convertible
    security is a bond, debenture, note, preferred stock or other
    security that may be converted into or exchanged for a
    prescribed amount of common stock or other equity security of
    the same or a different issuer within a particular period of
    time at a specified price or formula. Before conversion,
    convertible securities have characteristics similar to
    nonconvertible income securities in that they ordinarily provide
    a stable stream of income with generally higher yields than
    those of common stocks of the same or similar issuers, but lower
    yields than comparable nonconvertible securities. Similar to
    traditional fixed income securities, the market values of
    convertible securities tend to decline as interest rates
    increase and, conversely, to increase as interest rates decline.
    However, when the market price of the common stock underlying a
    convertible security exceeds the conversion price, the
    convertible security tends to reflect the market price of the
    underlying common stock. As the market price of the underlying
    common stock declines, the convertible security tends to trade
    increasingly on a yield basis and thus may not decline in price
    to the same extent as the underlying common stock. The credit
    standing of the issuer and other factors also may have an effect
    on the convertible security&#146;s investment value. Convertible
    securities rank senior to common stock in a corporation&#146;s
    capital structure but are usually subordinated to comparable
    nonconvertible securities. Convertible securities may be subject
    to redemption at the option of the issuer at a price established
    in the convertible security&#146;s governing instrument.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Short
    Sales Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may take short positions in securities that the
    Advisors believe may decline in price or in the aggregate may
    underperform broad market benchmarks. The Trust may also engage
    in derivatives transactions that provide similar short exposure.
    In times of unusual or adverse market, economic, regulatory or
    political conditions, the Trust may not be able, fully or
    partially, to implement a short selling strategy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Short sales are transactions in which the Trust sells a security
    or other instrument (such as an option, forward, futures or
    other derivative contract) that it does not own. Short selling
    allows the Trust to profit from a decline in market price to the
    extent such decline exceeds the transaction costs and the costs
    of borrowing the securities. If a security sold short increases
    in price, the Trust may have to cover its short position at a
    higher price than the short sale price, resulting in a loss. The
    Trust may have substantial short positions and must borrow those
    securities to make delivery to the buyer. The Trust may not be
    able to borrow a security that it needs to deliver or it may not
    be able to close out a short position at an acceptable price and
    may have to sell related long positions before it had
</DIV>
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    A-13
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    intended to do so. Thus, the Trust may not be able to
    successfully implement its short sale strategy due to limited
    availability of desired securities or for other reasons. Also,
    there is the risk that the counterparty to a short sale may fail
    to honor its contractual terms, causing a loss to the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because losses on short sales arise from increases in the value
    of the security sold short, such losses are theoretically
    unlimited. By contrast, a loss on a long position arises from
    decreases in the value of the security and is limited by the
    fact that a security&#146;s value cannot go below zero. The use
    of short sales in combination with long positions in the
    Trust&#146;s portfolio in an attempt to improve performance or
    reduce overall portfolio risk may not be successful and may
    result in greater losses or lower positive returns than if the
    Trust held only long positions. It is possible that the
    Trust&#146;s long securities positions will decline in value at
    the same time that the value of its short securities positions
    increase, thereby increasing potential losses to the Trust. In
    addition, the Trust&#146;s short selling strategies will limit
    its ability to fully benefit from increases in the securities
    markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    By investing the proceeds received from selling securities
    short, the Trust could be deemed to be employing a form of
    leverage, which creates special risks. The use of leverage may
    increase the Trust&#146;s exposure to long securities positions
    and make any change in the Trust&#146;s NAV greater than it
    would be without the use of leverage. This could result in
    increased volatility of returns. There is no guarantee that any
    leveraging strategy the Trust employs will be successful during
    any period in which it is employed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC recently proposed certain restrictions on short sales.
    If the SEC&#146;s proposals are adopted, they could restrict the
    Trust&#146;s ability to engage in short sales in certain
    circumstances. In addition, regulatory authorities in the United
    States or other countries may adopt bans on short sales of
    certain securities, either generally, or with respect to certain
    industries or countries, in response to market events.
    Restrictions
    <FONT style="white-space: nowrap">and/or</FONT> bans
    on short selling may make it impossible for the Trust to execute
    certain investment strategies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Repurchase
    Agreements Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to its investment objective and policies, the Trust may
    invest in repurchase agreements for investment purposes.
    Repurchase agreements typically involve the acquisition by the
    Trust of debt securities from a selling financial institution
    such as a bank, savings and loan association or broker-dealer.
    The agreement provides that the Trust will sell the securities
    back to the institution at a fixed time in the future. The Trust
    does not bear the risk of a decline in the value of the
    underlying security unless the seller defaults under its
    repurchase obligation. In the event of the bankruptcy or other
    default of a seller of a repurchase agreement, the Trust could
    experience both delays in liquidating the underlying securities
    and losses, including possible decline in the value of the
    underlying security during the period in which the Trust seeks
    to enforce its rights thereto; possible lack of access to income
    on the underlying security during this period; and expenses of
    enforcing its rights. While repurchase agreements involve
    certain risks not associated with direct investments in debt
    securities, the Trust follows procedures approved by the
    Trust&#146;s Board that are designed to minimize such risks. In
    addition, the value of the collateral underlying the repurchase
    agreement will be at least equal to the repurchase price,
    including any accrued interest earned on the repurchase
    agreement. In the event of a default or bankruptcy by a selling
    financial institution, the Trust generally will seek to
    liquidate such collateral. However, the exercise of the
    Trust&#146;s right to liquidate such collateral could involve
    certain costs or delays and, to the extent that proceeds from
    any sale upon a default of the obligation to repurchase were
    less than the repurchase price, the Trust could suffer a loss.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">When-Issued
    and Delayed-Delivery Transactions Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may purchase fixed income securities on a when-issued
    basis, and may purchase or sell those securities for delayed
    delivery. When-issued and delayed-delivery transactions occur
    when securities are purchased or sold by the Trust with payment
    and delivery taking place in the future to secure an
    advantageous yield or price. Securities purchased on a
    when-issued or delayed-delivery basis may expose the Trust to
    counterparty risk of default, as well as the risk that
    securities may experience fluctuations in value prior to their
    actual delivery. The Trust will not accrue income with respect
    to a when-issued or delayed-delivery security prior to its
    stated delivery date. Purchasing securities on a when-issued or
    delayed-delivery basis can involve the additional risk that the
    price or yield available in the market when the delivery takes
    place may not be as favorable as that obtained in the
    transaction itself.
</DIV>
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    A-14
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    <B><FONT style="font-family: 'Times New Roman', Times">Risk
    Factors in Strategic Transactions and Derivatives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to Appendix&#160;C, the following contains risk
    factors associated with derivatives. Derivatives are volatile
    and involve significant risks, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s use of derivatives may reduce its returns
    <FONT style="white-space: nowrap">and/or</FONT>
    increase volatility. Volatility is defined as the characteristic
    of a security, an index or a market to fluctuate significantly
    in price within a short time period. A risk of the Trust&#146;s
    use of derivatives is that the fluctuations in their values may
    not correlate perfectly with the overall securities markets.
    Derivatives are also subject to counterparty risk, which is the
    risk that the other party in the transaction will not fulfill
    its contractual obligation. In addition, some derivatives are
    more sensitive to interest rate changes and market price
    fluctuations than other securities. The possible lack of a
    liquid secondary market for derivatives and the resulting
    inability of the Trust to sell or otherwise close a derivatives
    position could expose the Trust to losses and could make
    derivatives more difficult for the Trust to value accurately.
    The Trust could also suffer losses related to its derivative
    positions as a result of unanticipated market movements, which
    losses are potentially unlimited. Finally, the Advisors may not
    be able to predict correctly the direction of securities prices,
    interest rates and other economic factors, which could cause the
    Trust&#146;s derivatives positions to lose value. When a
    derivative is used as a hedge against a position that the Trust
    holds, any loss generated by the derivative generally should be
    substantially offset by gains on the hedged investment, and vice
    versa. While hedging can reduce or eliminate losses, it can also
    reduce or eliminate gains. Hedges are sometimes subject to
    imperfect matching between the derivative and the underlying
    security, and there can be no assurance that the Trust&#146;s
    hedging transactions will be effective. The income from certain
    derivatives may be subject to federal income tax. Swap
    agreements involve the risk that the party with whom the Trust
    has entered into the swap will default on its obligation to pay
    the Trust and the risk that the Trust will not be able to meet
    its obligations to pay the other party to the agreement. Credit
    default swaps involve special risks in addition to those
    mentioned above because they are difficult to value, are highly
    susceptible to liquidity and credit risk, and generally pay a
    return to the party that has paid the premium only in the event
    of an actual default by the issuer of the underlying obligation
    (as opposed to a credit downgrade or other indication of
    financial difficulty). Forward foreign currency exchange
    contracts do not eliminate fluctuations in the value of
    <FONT style="white-space: nowrap">non-U.S.&#160;Securities</FONT>
    but rather allow the Trust to establish a fixed rate of exchange
    for a future point in time. This strategy can have the effect of
    reducing returns and minimizing opportunities for gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Credit Risk </I>&#151;&#160;the risk that the counterparty in
    a derivative transaction will be unable to honor its financial
    obligation to the Trust, or the risk that the reference entity
    in a credit default swap or similar derivative will not be able
    to honor its financial obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Leverage Risk </I>&#151;&#160;the risk associated with
    certain types of investments or trading strategies (such as, for
    example, borrowing money to increase the amount of investments)
    that relatively small market movements may result in large
    changes in the value of an investment. Certain investments or
    trading strategies that involve leverage can result in losses
    that greatly exceed the amount originally invested.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Liquidity Risk </I>&#151;&#160;the risk that certain
    securities may be difficult or impossible to sell at the time
    that the seller would like or at the price that the seller
    believes the security is currently worth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Correlation Risk </I>&#151;&#160;the risk that changes in the
    value of a derivative will not match the changes in the value of
    the portfolio holdings that are being hedged or of the
    particular market or security to which the Trust seeks exposure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Index Risk </I>&#151;&#160;If the derivative is linked to the
    performance of an index, it will be subject to the risks
    associated with changes in that index. If the index changes, the
    Trust could receive lower interest payments or experience a
    reduction in the value of the derivative to below what that
    Trust paid. Certain indexed securities, including inverse
    securities (which move in an opposite direction to the index),
    may create leverage, to the extent that they increase or
    decrease in value at a rate that is a multiple of the changes in
    the applicable index.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There can be no assurance that, at any specific time, either a
    liquid secondary market will exist for a derivative or the Trust
    will otherwise be able to sell such instrument at an acceptable
    price. It may, therefore, not be possible to close a position in
    a derivative without incurring substantial losses, if at all.
    Certain transactions in derivatives (such as futures
    transactions or sales of put options) involve substantial
    leverage risk and may expose the Trust to potential losses that
    exceed the amount originally invested by the Trust. When the
    Trust engages in such a transaction, the
</DIV>
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    <BR>
    A-15
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    Trust will deposit in a segregated account liquid assets with a
    value at least equal to the Trust&#146;s exposure, on a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    basis, to the transaction (as calculated pursuant to
    requirements of the Securities and Exchange Commission). Such
    segregation will ensure that the Trust has assets available to
    satisfy its obligations with respect to the transaction, but
    will not limit the Trust&#146;s exposure to loss.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with Swaps</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Swaps are privately negotiated transactions between the Trust
    and a counterparty. All of the rights and obligations of the
    Trust are detailed in the swap contract, which binds the Trust
    and its counterparty. Because a swap transaction is a
    privately-negotiated contract, the Trust remains liable for all
    obligations under the contract until the swap contract matures
    or is purchased by the swap counterparty. Therefore, even if the
    Trust were to sell the swap contract to a third party, the Trust
    would remain primarily liable for the obligations under the swap
    transaction. The only way for the Trust to eliminate its primary
    obligations under the swap agreement is to sell the swap
    contract back to the original counterparty. Additionally, the
    Trust must identify liquid assets on its books to the extent of
    the Trust&#146;s obligations to pay the counterparty under the
    swap agreement. The Trust will also be exposed to the
    performance risk of its counterparty. If the counterparty is
    unable to perform its obligations under the swap contract at
    maturity of the swap or any interim payment date, the Trust may
    not receive the payments due it under the swap agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Total return swaps expose the Trust to the price risk of the
    underlying security, index, futures or option contract,
    instrument or other economic variable. If the price of the
    underlying security, index, futures or option contract,
    instrument or other economic variable increases in value during
    the term of the swap, the Trust will receive the resulting price
    appreciation. However, if the price declines in value during the
    term of the swap, the Trust will be required to pay to its
    counterparty the amount of the price depreciation. The amount of
    the price depreciation paid by the Trust to its counterparty
    would be in addition to the financing fee paid by the Trust to
    the same counterparty.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There are several risks associated with transactions in options
    on securities and indexes. For example, there are significant
    differences between the securities and options markets that
    could result in an imperfect correlation between these markets,
    causing a given transaction not to achieve its objectives. In
    addition, a liquid secondary market for particular options,
    whether traded
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    or on a national securities exchange (&#147;Exchange&#148;) may
    be absent for reasons which include the following: there may be
    insufficient trading interest in certain options; restrictions
    may be imposed by an Exchange on opening transactions or closing
    transactions or both; trading halts, suspensions or other
    restrictions may be imposed with respect to particular classes
    or series of options or underlying securities; unusual or
    unforeseen circumstances may interrupt normal operations on an
    Exchange; the facilities of an Exchange or the Options Clearing
    Corporation (&#147;OCC&#148;) may not at all times be adequate
    to handle current trading volume; or one or more Exchanges
    could, for economic or other reasons, decide or be compelled at
    some future date to discontinue the trading of options (or a
    particular class or series of options), in which event the
    secondary market on that Exchange (or in that class or series of
    options) would cease to exist, although outstanding options that
    had been issued by the OCC as a result of trades on that
    Exchange would continue to be exercisable in accordance with
    their terms.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with Futures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The primary risks associated with the use of futures contracts
    and options are: the imperfect correlation between the change in
    market value of the instruments held by the Trust and the price
    of the futures contract or option; possible lack of a liquid
    secondary market for a futures contract and the resulting
    inability to close a futures contract when desired; losses
    caused by unanticipated market movements, which are potentially
    unlimited; the Advisor&#146;s inability to predict correctly the
    direction of securities prices, interest rates, currency
    exchange rates and other economic factors; and the possibility
    that the counterparty will default in the performance of its
    obligations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Additional
    Risk Factors of OTC Transactions; Limitations on the Use of OTC
    Derivatives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain derivatives traded in OTC markets, including indexed
    securities, swaps and OTC options, involve substantial liquidity
    risk. The absence of liquidity may make it difficult or
    impossible for the Trust to sell such
</DIV>
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    <BR>
    A-16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    instruments promptly at an acceptable price. The absence of
    liquidity may also make it more difficult for the Trust to
    ascertain a market value for such instruments. The Trust will,
    therefore, acquire illiquid OTC instruments (i)&#160;if the
    agreement pursuant to which the instrument is purchased contains
    a formula price at which the instrument may be terminated or
    sold, or (ii)&#160;for which the Advisors anticipate the Trust
    can receive on each business day at least two independent bids
    or offers, unless a quotation from only one dealer is available,
    in which case that dealer&#146;s quotation may be used. Because
    derivatives traded in OTC markets are not guaranteed by an
    exchange or clearing corporation and generally do not require
    payment of margin, to the extent that the Trust has unrealized
    gains in such instruments or has deposited collateral with its
    counterparties, the Trust is at risk that its counterparties
    will become bankrupt or otherwise fail to honor its obligations.
    The Trust will attempt to minimize these risks by engaging in
    transactions in derivatives traded in OTC markets only with
    financial institutions that have substantial capital or that
    have provided the Trust with a third-party guaranty or other
    credit enhancement.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    OF THE TRUST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Advisor and
    <FONT style="white-space: nowrap">Sub-Advisors</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock Advisors acts as the Trust&#146;s investment advisor.
    BlackRock Financial Management, Inc. and BlackRock Investment
    Management, LLC (collectively, the
    <FONT style="white-space: nowrap">&#147;Sub-Advisor&#148;)</FONT>
    act as the Trust&#146;s investment
    <FONT style="white-space: nowrap">sub-advisors.</FONT>
    BlackRock Advisors, located at 100 Bellevue Parkway, Wilmington,
    Delaware 19809, BlackRock Financial Management, Inc. located at
    55 East 52nd&#160;Street, New York, New York 10055, and
    BlackRock Investment Management, LLC, located at 55 East
    52nd&#160;Street, New York, New York 10055, are wholly owned
    subsidiaries of BlackRock, Inc. (&#147;BlackRock&#148;).
    BlackRock is one of the world&#146;s largest publicly-traded
    investment management firms. As of September&#160;30, 2011,
    BlackRock&#146;s assets under management were approximately
    $3.345 trillion. BlackRock has over 20&#160;years of experience
    managing closed-end products and, as of September&#160;30, 2011,
    advised a registered closed-end family of 94 exchange-listed
    active funds with approximately $39.6&#160;billion in assets. In
    addition, BlackRock advised two non-exchange-listed closed-end
    funds with approximately $322.7&#160;million in assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock offers products that span the risk spectrum to meet
    clients&#146; needs, including active, enhanced and index
    strategies across markets and asset classes. Products are
    offered in a variety of structures including separate accounts,
    mutual funds,
    iShares<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    (exchange traded funds), and other pooled investment vehicles.
    BlackRock also offers risk management, advisory and enterprise
    investment system services to a broad base of institutional
    investors through <I>BlackRock
    Solutions</I><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    Headquartered in New York City, as of September&#160;30, 2011,
    the firm has approximately 10,200&#160;employees in 27 countries
    and a major presence in key global markets, including North and
    South America, Europe, Asia, Australia and the Middle East and
    Africa.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Management Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Although BlackRock Advisors intends to devote such time and
    effort to the business of the Trust as is reasonably necessary
    to perform its duties to the Trust, the services of BlackRock
    Advisors are not exclusive and BlackRock Advisors provides
    similar services to other investment companies and other clients
    and may engage in other activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Investment Management Agreement also provides that in the
    absence of willful misfeasance, bad faith, gross negligence or
    reckless disregard of its obligations thereunder, BlackRock
    Advisors is not liable to the Trust or any of the Trust&#146;s
    shareholders for any act or omission by BlackRock Advisors in
    the supervision or management of its respective investment
    activities or for any loss sustained by the Trust or the
    Trust&#146;s shareholders and provides for indemnification by
    the Trust of BlackRock Advisors, its directors, officers,
    employees, agents and control persons for liabilities incurred
    by them in connection with their services to the Trust, subject
    to certain limitations and conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Investment Management Agreement was approved by the
    Trust&#146;s Board, including a majority of the trustees who are
    not parties to the agreement or interested persons of any such
    party (as such term is defined in the Investment Company Act),
    at an in-person meeting of the Board held on October&#160;21,
    2011. This agreement provides for the Trust to pay a Management
    Fee at an annual rate equal to 1.00% of the average daily value
    of the net assets of the Trust.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Investment Management Agreement was approved by the sole
    common shareholder of the Trust as of October&#160;24, 2011. The
    Investment Management Agreement will continue in effect for a
    period of two years from its effective date, and if not sooner
    terminated, will continue in effect for successive periods of
    12&#160;months thereafter, provided that each continuance is
    specifically approved at least annually by both (1)&#160;the
    vote of a majority of the Board or the vote of a majority of the
    outstanding voting securities of the Trust (as such term is
    defined in the Investment Company Act) and (2)&#160;by the vote
    of a majority of the trustees who are not parties to the
    investment management agreement or interested persons (as such
    term is defined in the Investment Company Act) of any such
    party, cast in person at a meeting called for the purpose of
    voting on such approval. The Investment Management Agreement may
    be terminated as a whole at any time by the Trust, without the
    payment of any penalty, upon the vote of a majority of the Board
    or a majority of the outstanding voting securities of the Trust
    or by BlackRock Advisors, on 60&#160;days&#146; written notice
    by either party to the other which can be waived by the
    non-terminating party. The Investment Management Agreement will
    terminate automatically in the event of its assignment (as such
    term is defined in the Investment Company Act and the rules
    thereunder).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Sub-Investment</FONT>
    Advisory Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to separate
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreements, BlackRock Advisors has appointed BlackRock
    Financial Management, Inc. and BlackRock Investment Management,
    LLC, each an affiliate of BlackRock Advisors, to perform certain
    of the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    investment management of the Trust. Each
    <FONT style="white-space: nowrap">Sub-Advisor</FONT>
    will receive a portion of the management fee paid by the Trust
    to BlackRock Advisors. From the management fees, BlackRock
    Advisors will pay to each
    <FONT style="white-space: nowrap">Sub-Advisor</FONT>
    a fee equal to 51% of the monthly management fees received by
    BlackRock Advisors with respect to the average daily net assets
    of the Trust allocated to such Sub-Advisor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreements also provide that, in the absence of willful
    misfeasance, bad faith, gross negligence or reckless disregard
    of its obligations thereunder, the Trust will indemnify the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    and their respective directors, officers, employees, agents,
    associates and control persons for liabilities incurred by them
    in connection with their services to the Trust, subject to
    certain limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Although the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    intend to devote such time and effort to the business of the
    Trust as is reasonably necessary to perform their duties to the
    Trust, the services of the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    are not exclusive and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    provide similar services to other investment companies and other
    clients and may engage in other activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreements were approved by the Board, including a
    majority of the trustees who are not parties to the agreement or
    interested persons of any such party (as such term is defined in
    the Investment Company Act), at an in-person meeting of the
    Board held on October&#160;21, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreement was approved by the sole common shareholder
    of the Trust as of October&#160;24, 2011. Each
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreement will continue in effect for a period of two
    years from its effective date, and if not sooner terminated,
    will continue in effect for successive periods of 12&#160;months
    thereafter, provided that each continuance is specifically
    approved at least annually by both (1)&#160;the vote of a
    majority of the Board or the vote of a majority of the
    outstanding voting securities of the Trust (as defined in the
    Investment Company Act) and (2)&#160;by the vote of a majority
    of the trustees who are not parties to such agreement or
    interested persons (as such term is defined in the Investment
    Company Act) of any such party, cast in person at a meeting
    called for the purpose of voting on such approval. Each
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreement may be terminated as a whole at any time by
    the Trust without the payment of any penalty, upon the vote of a
    majority of the Board or a majority of the outstanding voting
    securities of the Trust, or by BlackRock Advisors or the
    applicable
    <FONT style="white-space: nowrap">Sub-Advisor,</FONT>
    on 60&#160;days&#146; written notice by either party to the
    other. Each
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreement will also terminate automatically in the
    event of its assignment (as such term is defined in the
    Investment Company Act and the rules thereunder).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Matters
    Considered by the Board</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A discussion regarding the basis for the approval of the
    respective initial and successor investment management and each
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreement by the Board will be available in the
    Trust&#146;s first report sent to shareholders.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-18
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Trustees
    and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board consists of eleven individuals, six of whom are
    currently not &#147;interested persons&#148; (as defined in the
    Investment Company Act) of the Trust, and an additional three of
    whom will not be &#147;interested persons&#148; of the Trust
    once certain underwriters are no longer principal underwriters
    of the Trust. The registered investment companies advised by the
    Advisors or their affiliates (the &#147;BlackRock-Advised
    Funds&#148;) are organized into one complex of closed-end funds
    (the &#147;Closed-End Complex&#148;), two complexes of open-end
    funds (the &#147;Equity-Liquidity Complex,&#148; and the
    &#147;Equity-Bond Complex&#148;) and one complex of
    exchange-traded funds (the &#147;Exchange-Traded Complex&#148;;
    each such complex a &#147;BlackRock Fund&#160;Complex&#148;).
    The Trust is included in the Closed-End Complex. The Trustees
    also oversee as Board members the operations of the other
    closed-end registered investment companies included in the
    Closed-End Complex.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Biographical
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain biographical and other information relating to the
    Trustees is set forth below, including their address and year of
    birth, their principal occupations for at least the last five
    years, the length of time served, the total number of investment
    companies and portfolios overseen in the BlackRock-Advised Funds
    and any public directorships held during the past five years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="20%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="26%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>BlackRock-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Advised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Public<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Companies<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#147;RICs&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Consisting of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Portfolios<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held During<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#147;Portfolios&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Past Five<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>and Year of Birth</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Overseen*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years**</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="11" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Non-Interested Trustees</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Richard E. Cavanagh <BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055 1946
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee and Chairman of the Board
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The
    Guardian Life Insurance Company of America since 1998; Trustee,
    Educational Testing Service from 1997 to 2009 and Chairman
    thereof from 2005 to 2009; Senior Advisor, The Fremont Group
    since 2008 and Director thereof since 1996; Adjunct Lecturer,
    Harvard University since 2007; President and Chief Executive
    Officer, The Conference Board, Inc. (global business research
    organization) from 1995 to 2007.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Arch Chemical (chemical and allied products)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Michael J. Castellano&#134;&#134;<BR>
    55 East 52nd Street <BR>
    New York, NY<BR>
    10055 1946
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee and Member of the Audit
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since Inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director and Chief Financial Officer of Lazard Group
    LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd
    from 2004 to 2011; Director, Support Our Aging Religions
    (non-profit) since 2009; Director, National Advisory Board of
    Church Management at Villanova University since 2010.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Frank J. Fabozzi<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1948
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee and Member of the Audit Committee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Editor of and Consultant for The Journal of Portfolio Management
    since 1986; Professor of Finance, EDHEC Business School since
    2011; Professor in the Practice of Finance and Becton Fellow,
    Yale University School of Management from 2006 to 2011; Adjunct
    Professor of Finance and Becton Fellow, Yale University from
    1994 to 2006.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->


<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-19
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
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<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
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    <TD width="20%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="26%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>BlackRock-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Advised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Public<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Companies<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#145;&#145;RICs&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Consisting of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Portfolios<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held During<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#145;&#145;Portfolios&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Past Five<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>and Year of Birth</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Overseen*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years**</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Kathleen F. Feldstein&#134;&#134;<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1941
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President of Economics Studies, Inc. (private economic
    consulting firm) since 1987; Chair, Board of Trustees, McLean
    Hospital from 2000 to 2008 and Trustee Emeritus thereof since
    2008; Member of the Board of Partners Community Healthcare, Inc.
    from 2005 to 2009; Member of the Corporation of Partners
    HealthCare since 1995; Trustee, Museum of Fine Arts, Boston
    since 1992; Member of the Visiting Committee to the Harvard
    University Art Museum since 2003; Director, Catholic Charities
    of Boston since 2009.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The McClatchy Company (publishing); BellSouth
    (telecommunications); Knight Ridder (publishing)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    James T. Flynn<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1939
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee and Member of the Audit Committee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Financial Officer of JPMorgan &#038; Co., Inc. from 1990
    to 1995.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Jerrold B. Harris<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1942
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee, Ursinus College since 2000; Director, Troemner LLC
    (scientific equipment) since 2000;  Director of Delta Waterfowl
    Foundation since 2001; President and Chief Executive Officer,
    VWR Scientific Products Corporation from 1990 to 1999.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    BlackRock Kelso Capital Corp. (business development company)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    R. Glenn Hubbard&#134;&#134;<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1958
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Dean, Columbia Business School since 2004; Columbia faculty
    member since 1988; Co-Director, Columbia Business School&#146;s
    Entrepreneurship Program from 1997 to 2004; Chairman, U.S.
    Council of Economic Advisers under the President of the United
    States from 2001 to 2003; Chairman, Economic Policy Committee of
    the OECD from 2001 to 2003.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    ADP (data and information services); KKR Financial Corporation
    (finance); Metropolitan Life Insurance Company (insurance)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    W. Carl Kester<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1951
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee and Member of the Audit Committee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    George Fisher Baker Jr. Professor of Business Administration,
    Harvard Business School; Deputy Dean for Academic Affairs, from
    2006 to 2010; Chairman of the Finance Department, Harvard
    Business School, from 2005 to 2006; Senior Associate Dean and
    Chairman of the MBA Program of Harvard Business School, from
    1999 to 2005; Member of the faculty of Harvard Business School
    since 1981.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TR style="font-size: 1pt" valign="bottom">
    <TD width="20%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="26%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>BlackRock-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Advised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Public<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Companies<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#145;&#145;RICs&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Consisting of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Portfolios<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held During<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name, Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Held with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>(&#145;&#145;Portfolios&#148;)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Past Five<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>and Year of Birth</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Overseen*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years**</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Karen P. Robards<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1950
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Trustee, Vice Chair of the Board and Chairperson of the Audit
    Committee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Partner of Robards &#038; Company, LLC (financial advisory firm)
    since 1987; Co-founder and Director of the Cooke Center for
    Learning and Development (a not-for-profit organization) since
    1987; Director of Care Investment Trust, Inc. (health care real
    estate investment trust) from 2007 to 2010; Director of Enable
    Medical Corp. from 1996 to 2005; Investment Banker at Morgan
    Stanley from 1976 to 1987.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    96 RICs consisting of 96 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    AtriCure, Inc. (medical devices)
</TD>
</TR>
<TR valign="bottom">
<TD colspan="11" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Interested Trustees</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Paul L. Audet&#134;<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1953
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Managing Director, BlackRock, Inc., and Head of
    BlackRock&#146;s Real Estate business from 2008 to 2011;  Member
    of BlackRock&#146;s Global Operating and Corporate Risk
    Management Committees and of the BlackRock Alternative Investors
    Executive Committee and Investment Committee for the Private
    Equity Fund of Funds business since 2008; Head of
    BlackRock&#146;s Global Cash Management business from 2005 to
    2010; Acting Chief Financial Officer of BlackRock from 2007 to
    2008; Chief Financial Officer of BlackRock from 1998 to 2005.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    158 RICs consisting of 286 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Henry Gabbay&#134;<BR>
    55 East 52nd Street <BR>
    New York, NY <BR>
    10055<BR>
    1947
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Trustee
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since inception
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consultant, BlackRock, Inc. from 2007 to 2008; Managing
    Director, BlackRock, Inc. from 1989 to 2007; Chief
    Administrative Officer, BlackRock Advisors, LLC from 1998 to
    2007; President of BlackRock Funds and BlackRock Bond Allocation
    Target Shares from 2005 to 2007; Treasurer of certain closed-end
    funds in the BlackRock fund complex from 1989 to 2006.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    158 RICs consisting of 286 Portfolios
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    None
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">For purposes of this chart,
    &#147;RICs&#148; refers to registered investment companies and
    &#147;Portfolios&#148; refers to the investment programs of the
    BlackRock-Advised Funds. The Closed-End Complex, including the
    Trust, is comprised of 97 RICs.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">**
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Directorships disclosed under this
    column do not include directorships disclosed under the column
    &#147;Principal Occupation(s) During Past Five Years.&#148;
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">&#134;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Messrs.&#160; Audet and Gabbay are
    &#147;interested persons&#148; (as defined in the 1940 Act) of
    the Trust by virtue of their current or former positions with
    the Advisors, each a wholly owned subsidiary of BlackRock, Inc.,
    and their ownership of BlackRock, Inc. and The PNC Financial
    Service Group, Inc. securities. Messrs. Audet and Gabbay serve
    as interested trustees of three groups of BlackRock-advised
    funds&#160;- the Closed-End Complex and two complexes of
    open-end funds.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">&#134;&#134;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Ms.&#160;Feldstein and
    Messrs.&#160;Hubbard and Castellano are currently
    &#147;interested persons&#148; (as defined in the Investment
    Company Act) of the Trust as a result of their ownership of
    securities of one or more of the Trust&#146;s underwriters.
    Ms.&#160;Feldstein and Messrs.&#160;Hubbard and Castellano will
    cease to be &#147;interested persons&#148; once such
    underwriters are no longer principal underwriters of the Trust.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Experience,
    Qualifications and Skills</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Independent Trustees have adopted a statement of policy that
    describes the experience, qualifications, skills and attributes
    that are necessary and desirable for potential Independent
    Trustee candidates (the &#147;Statement of Policy&#148;). The
    Board believes that each Independent Trustee satisfied, at the
    time he or she was initially elected or appointed a Trustee, and
    continues to satisfy, the standards contemplated by the
    Statement of Policy. Furthermore, in determining that a
    particular Trustee was and continues to be qualified to serve as
    a Trustee, the Board has considered a variety of criteria, none
    of which, in isolation, was controlling. The Board believes
    that, collectively, the Trustees have balanced and diverse
    experience, skills, attributes and qualifications, which allow
    the Board to operate effectively in governing the Trust and
    protecting the interests of stockholders. Among the attributes
    common to all Trustees is their ability to review critically,
    evaluate, question and discuss information provided to them, to
    interact effectively with the Trust&#146;s investment advisor,
    <FONT style="white-space: nowrap">sub-advisor,</FONT>
    other service providers, counsel and independent auditors, and
    to exercise effective business judgment in the performance of
    their duties as Trustees. Each Trustee&#146;s ability to perform
    his or her duties effectively is evidenced by his or her
    educational background or professional training; business,
    consulting, public service or academic positions; experience
    from service as a board member of the Trust or the other funds
    in the BlackRock fund complexes (and any predecessor funds),
    other investment funds, public companies, or non-profit entities
    or other organizations; ongoing commitment and participation in
    Board and committee meetings, as well as their leadership of
    standing and ad hoc committees throughout the years; or other
    relevant life experiences. The table below discusses some of the
    experiences, qualifications and skills of each of our Trustees
    that support the conclusion that they should serve (or continue
    to serve) on the Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="20%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="77%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Trustee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Experiences, Qualifications and Skills</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard E. Cavanagh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr.&#160;Cavanagh brings to the Board a wealth of practical
    business knowledge and leadership as an experienced
    director/trustee of various public and private companies. In
    particular, because Mr.&#160;Cavanagh served for over a decade
    as President and Chief Executive Officer of The Conference
    Board, Inc., a global business research organization, he is able
    to provide the Board with expertise about business and economic
    trends and governance practices. Mr.&#160;Cavanagh created the
    &#147;blue ribbon&#148; Commission on Public Trust and Private
    Enterprise in 2002, which recommended corporate governance
    enhancements. Mr.&#160;Cavanagh&#146;s service as a director of
    The Guardian Life Insurance Company of America and as a senior
    advisor and director of The Fremont Group provides added insight
    into investment trends and conditions. Mr.&#160;Cavanagh&#146;s
    long-standing service on the boards of the Closed-End Complex
    also provides him with a specific understanding of the Trust,
    its operations, and the business and regulatory issues facing
    the Trust. Mr.&#160;Cavanagh&#146;s independence from the Trust
    and the Trust&#146;s investment advisor enhances his service as
    Chair of the Board, Chair of the Executive Committee and as a
    member of the Governance and Nominating Committee, Compliance
    Committee and Performance Oversight Committee.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael J. Castellano
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Board benefits from Mr.&#160;Castellano&#146;s over forty
    year career in accounting. Mr.&#160;Castellano has served as
    Chief Financial Officer of Lazard Ltd. and as a Managing
    Director and Chief Financial Officer of Lazard Group. Prior to
    joining Lazard, Mr.&#160;Castellano held various senior
    management positions at Merrill Lynch&#160;&#038; Co., including
    Senior Vice President&#160;&#151; Chief Control Officer for
    Merrill Lynch&#146;s capital markets businesses, Chairman of
    Merrill Lynch International Bank and Senior Vice
    President&#160;&#151; Corporate Controller. Prior to joining
    Merrill Lynch&#160;&#038; Co., Mr.&#160;Castellano was a partner
    with Deloitte&#160;&#038; Touche where he served a number of
    investment banking clients over the course of his 24&#160;years
    with the firm.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-22
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="20%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="77%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Trustee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Experiences, Qualifications and Skills</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frank J. Fabozzi
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Dr.&#160;Fabozzi holds the designations of Chartered Financial
    Analyst and Certified Public Accountant. Dr.&#160;Fabozzi was
    inducted into the Fixed Income Analysts Society&#146;s Hall of
    Fame and is the 2007 recipient of the C. Stewart Sheppard Award
    given by the CFA Institute. The Board benefits from
    Dr.&#160;Fabozzi&#146;s experiences as a professor and author in
    the field of finance. Dr.&#160;Fabozzi&#146;s experience as a
    Professor in the Practice of Finance and Becton Fellow at the
    Yale University School of Management and as editor of the
    Journal of Portfolio Management demonstrate his wealth of
    expertise in the investment management and structured finance
    areas. Dr.&#160;Fabozzi has authored and edited numerous books
    and research papers on topics in investment management and
    financial econometrics, and his writings have focused on fixed
    income securities and portfolio management, many of which are
    considered standard references in the investment management
    industry. Dr.&#160;Fabozzi&#146;s long-standing service on the
    boards of the Closed-End Complex also provides him with a
    specific understanding of the Trust, its operations, and the
    business and regulatory issues facing the Trust. Moreover,
    Dr.&#160;Fabozzi&#146;s knowledge of financial and accounting
    matters qualifies him to serve as a member of the Trust&#146;s
    Audit Committee. Dr.&#160;Fabozzi&#146;s independence from the
    Trust and the Trust&#146;s investment advisor enhances his
    service as Chair of the Performance Oversight Committee.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kathleen F. Feldstein
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Dr.&#160;Feldstein, who served as President of Economics
    Studies, Inc., an economic consulting firm, benefits the Board
    by providing business leadership and experience and knowledge of
    economics. The Board benefits from Dr.&#160;Feldstein&#146;s
    experience as a director/trustee of publicly traded and private
    companies, including financial services, technology and
    telecommunications companies. Dr.&#160;Feldstein&#146;s
    long-standing service on the boards of the Closed-End Complex
    also provides her with a specific understanding of the Trust,
    its operations, and the business and regulatory issues facing
    the Trust.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James T. Flynn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr.&#160;Flynn brings to the Board a broad and diverse knowledge
    of business and capital markets as a result of his many years of
    experience in the banking and financial industry.
    Mr.&#160;Flynn&#146;s five years as the Chief Financial Officer
    of JP Morgan&#160;&#038; Co. provide the Board with experience
    on financial reporting obligations and oversight of investments.
    Mr.&#160;Flynn&#146;s long-standing service on the boards of the
    Closed-End Complex also provides him with a specific
    understanding of the Trust, its operations, and the business and
    regulatory issues facing the Trust. Mr.&#160;Flynn&#146;s
    knowledge of financial and accounting matters qualifies him to
    serve as a member of the Trust&#146;s Audit Committee.
    Mr.&#160;Flynn&#146;s independence from the Trust and the
    Trust&#146;s investment advisor enhances his service as a member
    of the Performance Oversight Committee.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jerrold B. Harris
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr.&#160;Harris&#146;s time as President and Chief Executive
    Officer of VWR Scientific Products Corporation brings to the
    Board business leadership and experience and knowledge of the
    chemicals industry and national and international product
    distribution. Mr.&#160;Harris&#146;s position as a director of
    BlackRock Kelso Capital Corporation brings to the Board the
    benefit of his experience as a director of a business
    development company governed by the Investment Company Act and
    allows him to provide the Board with added insight into the
    management practices of other financial companies.
    Mr.&#160;Harris&#146;s long-standing service on the boards of
    the Closed-End Complex also provides him with a specific
    understanding of the Trust, its operations and the business and
    regulatory issues facing the Trust. Mr.&#160;Harris&#146;s
    independence from the Trust and the Trust&#146;s investment
    advisor fosters his role as Chair of the Compliance Committee
    and as a member of the Governance and Nominating Committee and
    Performance Oversight Committee.
</TD>
</TR>
</TABLE>
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<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Trustee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Experiences, Qualifications and Skills</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
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<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. Glenn Hubbard
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Dr.&#160;Hubbard has served in numerous roles in the field of
    economics, including as the Chairman of the U.S. Council of
    Economic Advisers of the President of the United States.
    Dr.&#160;Hubbard serves as the Dean of Columbia Business School,
    has served as a member of the Columbia Faculty and as a Visiting
    Professor at the John F. Kennedy School of Government at Harvard
    University, the Harvard Business School and the University of
    Chicago. Dr.&#160;Hubbard&#146;s experience as an adviser to the
    President of the United States adds a dimension of balance to
    the Trust&#146;s governance and provides perspective on economic
    issues. Dr.&#160;Hubbard&#146;s service on the boards of KKR
    Financial Corporation, ADP and Metropolitan Life Insurance
    Company provides the Board with the benefit of his experience
    with the management practices of other financial companies.
    Dr.&#160;Hubbard&#146;s long-standing service on the boards of
    the Closed-End Complex also provides him with a specific
    understanding of the Trust, its operations, and the business and
    regulatory issues facing the Trust.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    W. Carl Kester
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Board benefits from Dr.&#160;Kester&#146;s experiences as a
    professor and author in finance, and his experience as the
    George Fisher Baker Jr. Professor of Business Administration at
    Harvard Business School and as Deputy Dean of Academic Affairs
    at Harvard Business School adds to the Board a wealth of
    expertise in corporate finance and corporate governance.
    Dr.&#160;Kester has authored and edited numerous books and
    research papers on both subject matters, including co-editing a
    leading volume of finance case studies used worldwide.
    Dr.&#160;Kester&#146;s long-standing service on the boards of
    the Closed-End Complex also provides him with a specific
    understanding of the Trust, its operations, and the business and
    regulatory issues facing the Trust. Dr.&#160;Kester&#146;s
    knowledge of financial and accounting matters qualifies him to
    serve as a member of the Trust&#146;s Audit Committee. In
    addition, Dr.&#160;Kester&#146;s independence from the Trust and
    the Trust&#146;s investment advisor enhances his service as a
    member of the Performance Oversight Committee.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Karen P. Robards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Board benefits from Ms.&#160;Robards&#146;s many years of
    experience in investment banking and the financial advisory
    industry where she obtained extensive knowledge of the capital
    markets and advised clients on corporate finance transactions,
    including mergers and acquisitions and the issuance of debt and
    equity securities. Ms.&#160;Robards&#146;s prior position as an
    investment banker at Morgan Stanley provides useful oversight of
    the Trust&#146;s investment decisions and investment valuation
    processes. Additionally, Ms.&#160;Robards&#146;s experience
    derived from serving as a director of Care Investment Trust,
    Inc., a health care real estate investment trust, provides the
    Board with the benefit of her experience with the management
    practices of other financial companies. Ms.&#160;Robards&#146;s
    long-standing service on the boards of the Closed-End Complex
    also provides her with a specific understanding of the Trust,
    its operations, and the business and regulatory issues facing
    the Trust. Ms.&#160;Robards&#146;s knowledge of financial and
    accounting matters qualifies her to serve as Vice Chair of the
    Board and as the Chair of the Trust&#146;s Audit Committee.
    Ms.&#160;Robards&#146;s independence from the Trust and the
    Trust&#146;s investment advisor enhances her service as a member
    of the Performance Oversight Committee and Executive Committee.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paul L. Audet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr.&#160;Audet has a wealth of experience in the investment
    management industry, including more than 13&#160;years with
    BlackRock and over 20&#160;years in finance and asset
    management. He also has expertise in finance, as demonstrated by
    his positions as Chief Financial Officer of BlackRock and head
    of BlackRock&#146;s Global Cash Management business.
    Mr.&#160;Audet currently is a member of BlackRock&#146;s Global
    Operating and Corporate Risk Management Committees, the
    BlackRock Alternative Investors Executive Committee and the
    Investment Committee for the Private Equity Fund of Funds. Prior
    to joining BlackRock, Mr.&#160;Audet was the Senior Vice
    President of Finance at PNC Bank Corp. and Chief Financial
    Officer of the investment management and mutual fund processing
    businesses and head of PNC&#146;s Mergers&#160;&#038;
    Acquisitions unit. Mr.&#160;Audet is a member of the Executive
    Committee.
</TD>
</TR>
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    <B>Trustee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Experiences, Qualifications and Skills</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
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<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Henry Gabbay
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Board benefits from Dr.&#160;Gabbay&#146;s many years of
    experience in administration, finance and financial services
    operations. Dr.&#160;Gabbay&#146;s experience as a Managing
    Director of BlackRock, Inc., Chief Administrative Officer of
    BlackRock Advisors, LLC and President of BlackRock Funds
    provides the Board with insight into investment company
    operational, financial and investment matters.
    Dr.&#160;Gabbay&#146;s former positions as Chief Administrative
    Officer of BlackRock Advisors, LLC and as Treasurer of certain
    closed-end funds in the Closed-End Complex provide the Board
    with direct knowledge of the operations of the Trust and its
    investment advisors. Dr.&#160;Gabbay&#146;s long-standing
    service on the boards of the Closed-End Complex also provides
    him with a specific understanding of the Trust, its operations,
    and the business and regulatory issues facing the Trust.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Leadership Structure and Oversight</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has overall responsibility for the oversight of the
    Trust. The Chair of the Board and the Chief Executive Officer
    are two different people. Not only is the Chair of the Board an
    Independent Trustee, but also the Chair of each Board committee
    (each, a &#147;Committee&#148;) is an Independent Trustee. The
    Board has five standing Committees: an Audit Committee, a
    Governance and Nominating Committee, a Compliance Committee, a
    Performance Oversight Committee and an Executive Committee. The
    role of the Chair of the Board is to preside at all meetings of
    the Board and to act as a liaison with service providers,
    officers, attorneys, and other Trustees between meetings. The
    Chair of each Committee performs a similar role with respect to
    such Committee. The Chair of the Board or Committees may also
    perform such other functions as may be delegated by the Board or
    the Committees from time to time. The Independent Trustees meet
    regularly outside the presence of the Trust&#146;s management,
    in executive session or with other service providers to the
    Trust. The Board has regular meetings five times a year,
    including a meeting to consider the approval of the Trust&#146;s
    advisory agreements, and may hold special meetings if required
    before their next regular meeting. Each Committee meets
    regularly to conduct the oversight functions delegated to that
    Committee by the Board and reports its findings to the Board.
    The Board and each standing Committee conduct annual assessments
    of their oversight function and structure. The Board has
    determined that the Board&#146;s leadership structure is
    appropriate because it allows the Board to exercise independent
    judgment over management and to allocate areas of responsibility
    among Committees and the Board to enhance effective oversight.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board decided to separate the roles of Chair and Chief
    Executive Officer because it believes that an independent Chair:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Increases the independent oversight of the Trust and enhances
    the Board&#146;s objective evaluation of the Chief Executive
    Officer
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Allows the Chief Executive Officer to focus on the Trust&#146;s
    operations instead of Board administration
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Provides greater opportunities for direct and independent
    communication between shareholders and the Board
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Provides an independent spokesman for the Trust
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has engaged the Advisors to manage the Trust on a
    day-to day basis. The Board is responsible for overseeing the
    Advisors, other service providers, the operations of the Trust
    and associated risks in accordance with the provisions of the
    1940 Act, state law, other applicable laws, the Trust&#146;s
    charter, and the Trust&#146;s investment objective(s) and
    strategies. The Board reviews, on an ongoing basis, the
    Trust&#146;s performance, operations, and investment strategies
    and techniques. The Board also conducts reviews of the Advisors
    and its role in running the operations of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">Day-to-day</FONT>
    risk management with respect to the Trust is the responsibility
    of the Advisors or other service providers (depending on the
    nature of the risk), subject to the supervision of the Advisors.
    The Trust is subject to a number of risks, including investment,
    compliance, operational and valuation risks, among others. While
    there are a number of risk management functions performed by the
    Advisors or other service providers, as applicable, it is not
</DIV>
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    A-25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    possible to eliminate all of the risks applicable to the Trust.
    Risk oversight is part of the Board&#146;s general oversight of
    the Trust and is addressed as part of various Board and
    Committee activities. The Board, directly or through Committees,
    also review reports from, among others, management, the
    independent registered public accounting firm for the Trust, the
    Advisors, and internal auditors for the Advisors or its
    affiliates, as appropriate, regarding risks faced by the Trust
    and management&#146;s or the service provider&#146;s risk
    functions. The Committee system facilitates the timely and
    efficient consideration of matters by the Trustees and
    facilitates effective oversight of compliance with legal and
    regulatory requirements and of the Trust&#146;s activities and
    associated risks. The Board has appointed a Chief Compliance
    Officer, who oversees the implementation and testing of the
    Trust&#146;s compliance program and reports regularly to the
    Board regarding compliance matters for the Trust and its service
    providers. The Independent Trustees have engaged independent
    legal counsel to assist them in performing their oversight
    responsibilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Audit Committee.</I></B>&#160;The Board has a standing
    Audit Committee composed of Karen P. Robards (Chair), Frank J.
    Fabozzi, James T. Flynn and W. Carl Kester, all of whom are
    Independent Trustees. The Board intends to appoint
    Michael&#160;J. Castellano to the Audit Committee once he ceases
    to be an &#147;interested person&#148; of the Trust. The
    principal responsibilities of the Audit Committee are to assist
    the Board in fulfilling its oversight responsibilities relating
    to the accounting and financial reporting polices and practices
    of the Trust. The Audit Committee&#146;s responsibilities
    include, without limitation: (i)&#160;approving the selection,
    retention, termination and compensation of the Trust&#146;s
    independent registered public accounting firm (the
    &#147;independent auditors&#148;) and evaluating the
    independence and objectivity of the independent auditors;
    (ii)&#160;approving all audit engagement terms and fees for the
    Trust; (iii)&#160;reviewing the conduct and results of each
    audit; (iv)&#160;reviewing any issues raised by the independent
    auditor or management regarding the accounting or financial
    reporting policies and practices of the Trust, its internal
    controls, and, as appropriate, the internal controls of certain
    service providers and management&#146;s response to any such
    issues; (v)&#160;reviewing and discussing the Trust&#146;s
    audited and unaudited financial statements and disclosure in the
    Trust&#146;s shareholder reports relating to the Trust&#146;s
    performance; (vi)&#160;assisting the Board in considering the
    performance of the Trust&#146;s internal audit function provided
    by its investment advisor, administrator, pricing agent or other
    service provider; and (vii)&#160;resolving any disagreements
    between Trust management and the independent auditors regarding
    financial reporting. A copy of the Audit Committee Charter for
    the Trust can be found in the &#147;Corporate Governance&#148;
    section of the BlackRock Closed-End Fund website at
    www.blackrock.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Governance and Nominating Committee.</I></B>&#160;The
    Board has a standing Governance and Nominating Committee
    composed of Richard E. Cavanagh, Frank&#160;G. Fabozzi,
    James&#160;T. Flynn, Jerrold B. Harris, W.&#160;Carl Kester and
    Karen&#160;P. Robards, all of whom are Independent Trustees. The
    Board intends to appoint Michael&#160;J. Castellano,
    R.&#160;Glenn Hubbard and Kathleen&#160;F. Feldstein to the
    Governance and Nominating Committee once they cease to be
    &#147;interested persons&#148; of the Trust. The principal
    responsibilities of the Governance and Nominating Committee are:
    (i)&#160;identifying individuals qualified to serve as
    Independent Trustees and recommending Independent Trustee
    nominees for election by shareholders or appointment by the
    Board; (ii)&#160;advising the Board with respect to Board
    composition, procedures and committees (other than the Audit
    Committee); (iii)&#160;overseeing periodic self-assessments of
    the Board and committees of the Board (other than the Audit
    Committee); (iv)&#160;reviewing and making recommendations in
    respect of Independent Trustee compensation; (v)&#160;monitoring
    corporate governance matters and making recommendations in
    respect thereof to the Board; and (vi)&#160;acting as the
    administrative committee with respect to Board policies and
    procedures, committee policies and procedures (other than the
    Audit Committee) and codes of ethics as they relate to the
    Independent Trustees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Governance and Nominating Committee of the Board seeks to
    identify individuals to serve on the Board who have a diverse
    range of viewpoints, qualifications, experiences, backgrounds
    and skill sets so that the Board will be better suited to
    fulfill its responsibility of overseeing the Trust&#146;s
    activities. In so doing, the Governance and Nominating Committee
    reviews the size of the Board, the ages of the current Trustees
    and their tenure on the Board, and the skills, background and
    experiences of the Trustees in light of the issues facing the
    Trust in determining whether one or more new trustees should be
    added to the Board. The Board as a group strives to achieve
    diversity in terms of gender, race and geographic location. The
    Governance and Nominating Committee believes that the Trustees
    as a group possess the array of skills, experiences and
    backgrounds necessary to guide the Trust. The Trustees&#146;
    biographies included above highlight the diversity and breadth
    of skills, qualifications and expertise that the Trustees bring
    to the Trust.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-26
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Governance and Nominating Committee may consider nominations
    for Trustees made by the Trust&#146;s shareholders as it deems
    appropriate. Under the Trust&#146;s By-laws, shareholders must
    follow certain procedures to nominate a person for election as a
    trustee at a shareholder meeting, or to introduce an item of
    business at a shareholder meeting. The Trust does not intend to
    hold regular annual shareholders&#146; meetings. Under these
    advance notice procedures, shareholders must submit the proposed
    nominee or item of business by delivering a notice to the
    Secretary of the Trust at its principal executive offices. Each
    Trust must receive notice of a shareholder&#146;s intention to
    introduce a nomination or proposed item of business for a
    shareholder meeting called for the purpose of electing trustees
    not later than the close of business on the fifth day following
    the day on which notice of the date of the special meeting was
    mailed or public disclosure of the date of the special meeting
    was made, whichever first occurs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s By-laws provide that notice of a proposed
    nomination must include certain information about the
    shareholder and the nominee, as well as a written consent of the
    proposed nominee to serve if elected. A notice of a proposed
    item of business must include a description of and the reasons
    for bringing the proposed business to the meeting, any material
    interest of the shareholder in the business, and certain other
    information about the shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Further, the Trust has adopted Trustee qualification
    requirements which can be found in the Trust&#146;s By-laws and
    are applicable to all Trustees that may be nominated, elected,
    appointed, qualified or seated to serve as Trustees. Reference
    is made to the Trust&#146;s By-laws for more details.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A copy of the Governance and Nominating Committee Charter for
    the Trust can be found in the &#147;Corporate Governance&#148;
    section of the BlackRock Closed-End Fund website at
    www.blackrock.com.
</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Compliance Committee.</I></B>&#160;The Board has a
    Compliance Committee composed of Jerrold B. Harris (Chair) and
    Richard E. Cavanagh, each of whom are Independent Trustees. The
    Board intends to appoint Kathleen F. Feldstein and R. Glenn
    Hubbard to the Compliance Committee once they cease to be
    &#147;interested persons&#148; of the Trust. The Compliance
    Committee&#146;s purpose is to assist the Board in fulfilling
    its responsibility with respect to the oversight of regulatory
    and fiduciary compliance matters involving the Trust, the
    trust-related activities of BlackRock, and any
    <FONT style="white-space: nowrap">sub-advisors</FONT>
    and the Trust&#146;s other third party service providers. The
    Compliance Committee&#146;s responsibilities include, without
    limitation: (i)&#160;overseeing the compliance policies and
    procedures of the Trust and its service providers;
    (ii)&#160;reviewing information on and, where appropriate,
    recommending policies concerning the Trust&#146;s compliance
    with applicable law; (iii)&#160;reviewing information on any
    significant correspondence with or other actions by regulators
    or governmental agencies with respect to the Trust and any
    employee complaints or published reports that raise concerns
    regarding compliance matters; and (iv)&#160;reviewing reports
    from and making certain recommendations in respect of the
    Trust&#146;s Chief Compliance Officer, including, without
    limitation, determining the amount and structure of the Chief
    Compliance Officer&#146;s compensation. The Board has adopted a
    written charter for the Compliance Committee.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Performance Oversight Committee.</I></B>&#160;The Board
    has a Performance Oversight Committee composed of Frank J.
    Fabozzi (Chair), Richard E. Cavanagh, James T. Flynn, Jerrold B.
    Harris, W. Carl Kester and Karen P. Robards, all of whom are
    Independent Trustees. The Board intends to appoint Michael J.
    Castellano, Kathleen F. Feldstein and R. Glenn Hubbard to the
    Performance Oversight Committee once they cease to be
    &#147;interested persons&#148; of the Trust. The Performance
    Oversight Committee&#146;s purpose is to assist the Board in
    fulfilling its responsibility to oversee the Trust&#146;s
    investment performance relative to the Trust&#146;s investment
    objectives, policies and practices. The Performance Oversight
    Committee&#146;s responsibilities include, without limitation:
    (i)&#160;reviewing the Trust&#146;s investment objectives,
    policies and practices; (ii)&#160;recommending to the Board any
    required action in respect of changes in fundamental and
    non-fundamental investment restrictions; (iii)&#160;reviewing
    information on appropriate benchmarks and competitive universes;
    (iv)&#160;reviewing the Trust&#146;s investment performance
    relative to such benchmarks; (v)&#160;reviewing information on
    unusual or exceptional investment matters; (vi)&#160;reviewing
    whether the Trust has complied with its investment polices and
    restrictions; and (vii)&#160;overseeing policies, procedures and
    controls regarding valuation of the Trust&#146;s investments.
    The Board has adopted a written charter for the Performance
    Oversight Committee.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Executive Committee.</I></B>&#160;The Board has an
    Executive Committee composed of Richard E. Cavanagh and Karen P.
    Robards, both of whom are Independent Trustees, and Paul L.
    Audet, who serves as an interested Trustee. The principal
    responsibilities of the Executive Committee include, without
    limitation: (i)&#160;acting on routine matters
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-27
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    between meetings of the Board; (ii)&#160;acting on such matters
    as may require urgent action between meetings of the Board; and
    (iii)&#160;exercising such other authority as may from time to
    time be delegated to the Executive Committee by the Board. The
    Board has adopted a written charter for the Executive Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As the Trust is a closed-end investment company with no prior
    investment operations, no meetings of the above committees have
    been held in the fiscal year, except that the Audit Committee
    met in connection with the organization of the Trust to select
    the Trust&#146;s independent registered public accounting firm.
    Additionally, the Nominating and Governance Committee met in
    connection with the organization of the Trust to approve certain
    administrative matters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Share
    Ownership</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="24%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities Overseen by Trustees in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>the Family of Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Trustee</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities in the Trust(*)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Investment Companies</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Independent Trustees</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Michael J. Castellano&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Richard E. Cavanagh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Frank J. Fabozzi
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Kathleen F. Feldstein&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    James T. Flynn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Jerrold B. Harris
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    R. Glenn Hubbard&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    W. Carl Kester
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Karen P. Robards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Interested Trustees</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Paul L. Audet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    None&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Henry Gabbay
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    As of December&#160;31, 2010. The Trustees could not own shares
    in the Trust as of this date because the Trust had not yet begun
    investment operations. The term &#147;Family of Registered
    Investment Companies&#148; refers to all registered investment
    companies advised by the Advisors or an affiliate thereof.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    &#134; </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Feldstein and Messrs. Hubbard and Castellano are
    currently &#147;interested persons&#148; (as defined in the
    Investment Company Act) of the Trust as a result of their
    ownership of securities of one or more of the Trust&#146;s
    underwriters. Ms.&#160;Feldstein and Messrs. Hubbard and
    Castellano will cease to be &#147;interested persons&#148; once
    such underwriters are no longer principal underwriters of the
    Trust.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Trustees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each Trustee (other than those who are employees or officers of
    the Advisors) is paid an annual retainer of $250,000 per year
    for his or her services as a Trustee of all BlackRock-advised
    closed-end funds (the &#147;Closed-End Complex&#148;) that are
    overseen by the respective director/trustee and each Trustee may
    also receive a $10,000 board meeting fee for special unscheduled
    meetings or meetings in excess of six Board meetings held in a
    calendar year, together with
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses in accordance with a Board policy on travel and other
    business expenses relating to attendance at meetings. In
    addition, the Chair and Vice-Chair of the Board are paid an
    additional annual retainer of $120,000 and $40,000,
    respectively. The Chairs of the Audit Committee, Compliance
    Committee, Governance and Nominating Committee, and Performance
    Oversight Committee are paid an additional annual retainer of
    $35,000, $20,000, $10,000, and $20,000, respectively. Each Audit
    Committee member is paid an additional annual retainer of
    $25,000. The Trust pays a pro rata portion quarterly (based on
    relative net assets) of the foregoing Trustee fees paid by the
    funds in the Closed-End Complex.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dr.&#160;Gabbay is an interested person of the Trust and serves
    as an interested Trustee of three groups of BlackRock-advised
    funds&#160;&#151; the Closed-End Complex and two complexes of
    open-end funds (the &#147;Equity-Liquidity Complex&#148; and the
    &#147;Equity-Bond Complex&#148;; each such complex, a
    &#147;BlackRock Fund&#160;Complex&#148;). Dr.&#160;Gabbay
    receives for his services as a Trustee of such BlackRock
    Fund&#160;Complexes (i)&#160;an annual retainer of $487,500
    allocated to the funds in these three BlackRock
    Fund&#160;Complexes, including the Trust, based on their
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-28
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    relative net assets and (ii)&#160;with respect to each of the
    two open-end BlackRock Fund&#160;Complexes, a Board meeting fee
    of $3,750 (with respect to meetings of the Equity-Liquidity
    Complex) and $18,750 (with respect to meetings of the
    Equity-Bond Complex) to be paid for attendance at each Board
    meeting up to five Board meetings held in a calendar year by
    each such complex (compensation for meetings in excess of this
    number to be determined on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis). Dr.&#160;Gabbay is also reimbursed for
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses in accordance with a Board policy on travel and other
    business expenses relating to attendance at meetings.
    Dr.&#160;Gabbay&#146;s compensation for serving on the boards of
    the funds in these BlackRock Fund&#160;Complexes (including the
    Trust) is equal to 75% of each retainer and, as applicable, of
    each meeting fee (without regard to additional fees paid to
    Board and Committee chairs) received by the Independent Trustees
    serving on such boards. The Board of the Trust or of any other
    fund in a BlackRock Fund&#160;Complex may modify the
    Trustees&#146; compensation from time to time depending on
    market conditions and Dr.&#160;Gabbay&#146;s compensation would
    be impacted by those modifications.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Independent Trustees have agreed that a maximum of 50% of
    each Independent Trustee&#146;s total compensation paid by funds
    in the Closed-End Complex may be deferred pursuant to the
    Closed-End Complex&#146;s deferred compensation plan. Under the
    deferred compensation plan, deferred amounts earn a return for
    the Independent Trustees as though equivalent dollar amounts had
    been invested in common shares of certain funds in the
    Closed-End Complex selected by the Independent Trustees. This
    has approximately the same economic effect for the Independent
    Trustees as if they had invested the deferred amounts in such
    funds in the Closed-End Complex. The deferred compensation plan
    is not funded and obligations thereunder represent general
    unsecured claims against the general assets of a fund and are
    recorded as a liability for accounting purposes. A fund may,
    however, elect to invest in common shares of those funds in the
    Closed-End Complex selected by the Independent Trustees in order
    to match its deferred compensation obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth the estimated compensation that
    each of the Trustees would have earned from the Trust for the
    fiscal year ended October&#160;31, 2010 and the aggregate
    compensation paid to them by all funds in the Closed-End Complex
    for the calendar year ended December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="70%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>the Trust and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Closed-End<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>from the Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Complex(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Independent Trustees</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael J. Castellano&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard E. Cavanagh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    395,000
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frank J. Fabozzi
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    320,000
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kathleen F. Feldstein&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    270,000
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James T. Flynn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jerrold B. Harris
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. Glenn Hubbard&#134;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    260,000
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    W. Carl Kester
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Karen P. Robards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Interested Trustees</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paul L. Audet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Henry Gabbay
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    212,500
</TD>
<TD nowrap align="left" valign="bottom">
    (12)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">&#134;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Ms.&#160;Feldstein and Messrs.
    Hubbard and Castellano are currently &#147;interested
    persons&#148; (as defined in the Investment Company Act) of the
    Trust as a result of their ownership of securities of one or
    more of the Trust&#146;s underwriters. Ms.&#160;Feldstein and
    Messrs. Hubbard and Castellano will cease to be &#147;interested
    persons&#148; once such underwriters are no longer principal
    underwriters of the Trust.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents the aggregate
    compensation earned by such persons from the Closed-End Complex
    during the calendar year ended December&#160;31, 2010. Of this
    amount, Mr.&#160;Cavanagh, Dr.&#160;Fabozzi, Dr.&#160;Feldstein,
    Mr.&#160;Flynn, Mr.&#160;Harris, Dr.&#160;Kester and
    Ms.&#160;Robards deferred $37,000, $14,750, $81,000, $137,500,
    $125,000, $75,000 and $35,000, respectively, pursuant to the
    </FONT></TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-29
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Closed-End Complex&#146;s deferred
    compensation plan. In addition, during the calendar year ended
    December&#160;31, 2010, Mr.&#160;Cavanagh, Dr.&#160;Fabozzi,
    Dr.&#160;Feldstein and Dr.&#160;Hubbard received $24,857,
    $7,591, $3,478 and $18,883, respectively, due to deferred
    compensation payments in connection with fund liquidations.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $452,570 as of December&#160;31, 2010. Also a member of the AMPS
    Committee for certain funds in the Closed-End Complex and, as
    such, was paid a retainer of $25,000 for the year ended
    December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Mr.&#160;Castellano was appointed
    to the Boards of Directors/Trustees of the funds in the
    Closed-End Complex on April&#160;14, 2011. Therefore, for the
    purposes of this table, he received no compensation from the
    Closed-End Complex during the calendar year ended
    December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $422,019 as of December&#160;31, 2010. Also a member of the AMPS
    Committee for certain funds in the Closed-End Complex and, as
    such, was paid a retainer of $25,000 for the year ended
    December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $410,327 as of December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $547,940 as of December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $498,128 as of December&#160;31, 2010. Received a retainer of
    $25,000 for the year ended December&#160;31, 2010 as a member of
    the Joint Product Pricing Committee, which is an ad hoc
    committee of the Boards of Directors/Trustees of the other funds
    in the BlackRock Fund&#160;Complexes.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">As of December&#160;31, 2010,
    Dr.&#160;Hubbard did not participate in the deferred
    compensation plan. Dr.&#160;Hubbard previously participated in
    the deferred compensation plan and is owed $705,827 by the
    Closed-End Complex as of December&#160;31, 2010 pursuant to such
    plan.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $298,877 as of December&#160;31, 2010. Also a member of the AMPS
    Committee for certain funds in the Closed-End Complex and, as
    such, was paid a retainer of $25,000 for the year ended
    December&#160;31, 2010.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(10)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Total amount of deferred
    compensation payable by the Closed-End Complex to Trustee is
    $286,081 as of December&#160;31, 2010. Also a member of the AMPS
    Committee for certain funds in the Closed-End Complex and, as
    such, was paid a retainer of $25,000 for the year ended
    December&#160;31, 2010. Received a retainer of $25,000 for the
    year ended December&#160;31, 2010 as a member of the Joint
    Product Pricing Committee, which is an ad hoc committee of the
    Boards of Directors/Trustees of the other funds in the BlackRock
    Fund&#160;Complexes.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(11)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Mr.&#160;Audet serves without
    compensation from the Trust because of his affiliation with
    BlackRock, Inc. and the Advisors.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 9pt">(12)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">As of December&#160;31, 2010,
    Mr.&#160;Gabbay did not participate in the deferred compensation
    plan. Also a member of the AMPS Committee for certain funds in
    the Closed-End Complex and, as such, was paid a retainer of
    $25,000 for the year ended December&#160;31, 2010.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Trustee Ownership of Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of September&#160;30, 2011, the Independent Trustees (and
    their respective immediate family members) did not beneficially
    own securities of the Advisors, or an entity controlling,
    controlled by or under common control with the Advisors (not
    including registered investment companies).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of September&#160;30, 2011, as a group, Trustees and officers
    owned less than 1% of the outstanding common shares in the Trust
    because the Trust is commencing its offering coincident with the
    date of the prospectus. Prior to this offering, all of the
    outstanding shares of the Trust were owned by an affiliate of
    the Advisors.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Pertaining to the Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The officers of the Trust, their year of birth and their
    principal occupations during the past five years (their titles
    may have varied during that period) are shown in the tables
    below. The address of each officer is c/o BlackRock, Inc., Park
    Avenue Plaza, 55 East 52nd Street, New York, New York 10055.
    Each officer is an &#147;interested person&#148; of the Trust
    (as defined in the Investment Company Act) by virtue of that
    individual&#146;s position with BlackRock or its affiliates
    described in the table below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupations(s)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>and Year of Birth</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Held with Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Time Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>During Past 5 Years</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    John Perlowski<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1964
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President and Chief Executive Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2009; Global Head of
    BlackRock Fund&#160;Administration since 2009; Managing Director
    and Chief Operating Officer of the Global Product Group at
    Goldman Sachs Asset Management, L.P. from 2003 to 2009;
    Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and
    Senior Vice President thereof from 2007 to 2009; Director of
    Goldman Sachs Offshore Funds from 2002 to 2009; Director of
    Family Resource Network (charitable foundation) since 2009.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Anne F. Ackerley<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1962
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Vice President
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2000; President and
    Chief Executive Officer of the BlackRock-advised funds from 2009
    to 2011; Vice President of the BlackRock-advised funds from 2007
    to 2009; Chief Operating Officer of BlackRock&#146;s Global
    Client Group since 2009; Chief Operating Officer of
    BlackRock&#146;s U.S. Retail Group from 2006 to 2009; Head of
    BlackRock&#146;s Mutual Fund&#160;Group from 2000 to 2006.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Brendan Kyne<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1977
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Vice President
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2010; Director of
    BlackRock, Inc. from 2008 to 2009; Head of Product Development
    and Management for BlackRock&#146;s U.S. Retail Group since 2009
    and Co-head thereof from 2007 to 2009; Vice President of
    BlackRock, Inc. from 2005 to 2008.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Neal J. Andrews<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1966
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Financial Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2006; Senior Vice
    President and Line of Business Head of Fund&#160;Accounting and
    Administration at PNC Global Investment Servicing (U.S.) Inc.
    from 1992 to 2006.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Jay M. Fife<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1970
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Treasurer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2007; Director of
    BlackRock, Inc. in 2006; Assistant Treasurer of the MLIM and
    Fund&#160;Asset Management, L.P. advised funds from 2005 to
    2006; Director of MLIM Fund&#160;Services Group from 2001 to
    2006.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Brian P. Kindelan<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1959
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Compliance Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Compliance Officer of the BlackRock-advised funds since
    2007; Managing Director and Senior Counsel of BlackRock, Inc.
    since 2005.
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Ira P. Shapiro<BR>
    55 East 52nd Street<BR>
    New York, NY<BR>
    10055<BR>
    1963
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Since 2011
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Managing Director of BlackRock, Inc. since 2009; Managing
    Director and Associate General Counsel of Barclays Global
    Investors from 2008 to 2009 and Principal thereof from 2004 to
    2008.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    With the exception of the Chief Compliance Officer, officers
    receive no compensation from the Trust. The Trust compensates
    the Chief Compliance Officer for his services as its Chief
    Compliance Officer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Principal
    Owners of Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the public offering of the Common Shares, an affiliate
    of the Advisors purchased Common Shares from the Trust in an
    amount satisfying the net worth requirements of
    Section&#160;14(a) of the 1940 Act, which requires the Trust to
    have a net worth of at least $100,000 prior to making a public
    offering. As of the date of this Prospectus, this affiliate of
    the Advisors owned 100% of the Trust&#146;s outstanding Common
    Shares and therefore may be deemed
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    to control the Trust until such time as it owns less than 25% of
    the Trust&#146;s outstanding Common Shares, which is expected to
    occur upon the closing of this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Trust&#160;Management</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Portfolio Manager Assets Under Management.</I>&#160;&#160;The
    following table sets forth information about funds and accounts
    other than the Trust for which the portfolio managers are
    primarily responsible for the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    portfolio management as of September&#160;30, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=07 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Number of Other Accounts Assets for<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Number of Other Accounts Managed<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Which Advisory Fee is<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>and Assets by Account Type</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Performance-Based</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Pooled<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Pooled<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Portfolio Manager</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vehicles</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Accounts</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vehicles</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Accounts</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Kathleen M. Anderson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    13<BR>
    $17.51 billion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2<BR>
    $120.97 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    3<BR>
    $90.07 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Robert M. Shearer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    15<BR>
    $18.66 billion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2<BR>
    $120.97 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    3<BR>
    $90.07 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Kyle G. McClements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    15<BR>
    $6.34 billion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2<BR>
    $142.75 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    1<BR>
    $12.24 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Dan Neumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    2<BR>
    $1.38 billion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Christopher Accettella
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    1<BR>
    $694.33 million
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    0<BR>
    $0
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>




<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Manager Compensation Overview</FONT></I></B>
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock&#146;s financial arrangements with its portfolio
    managers, its competitive compensation and its career path
    emphasis at all levels reflect the value senior management
    places on key resources. Compensation may include a variety of
    components and may vary from year to year based on a number of
    factors. The principal components of compensation include a base
    salary, a performance-based discretionary bonus, participation
    in various benefits programs and one or more of the incentive
    compensation programs established by BlackRock.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Base compensation.</I>&#160;&#160;Generally, portfolio
    managers receive base compensation based on their position with
    the firm.
</DIV>



<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Discretionary
    Incentive Compensation</FONT></B>
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, discretionary incentive compensation for Active
    Equity portfolio managers such as Ms.&#160;Anderson and
    Messrs.&#160;Shearer, McClements, Neumann and Accettella is
    based on a formulaic compensation program. BlackRock&#146;s
    formulaic portfolio manager compensation program is based on
    team revenue and pre-tax investment performance relative to
    appropriate competitors or benchmarks over 1-, 3- and
    <FONT style="white-space: nowrap">5-year</FONT>
    performance periods, as applicable. In most cases, these
    benchmarks are the same as the benchmark or benchmarks against
    which the performance of the Funds or other accounts managed by
    the portfolio managers are measured. BlackRock&#146;s Chief
    Investment Officers determine the benchmarks or rankings against
    which the performance of funds and other accounts managed by
    each portfolio management team is compared and the period of
    time over which performance is evaluated. With respect to
    Ms.&#160;Anderson and Mr.&#160;Shearer, such benchmarks for the
    Fund and other accounts are Lipper Equity Income Funds, Lipper
    Natural Resources Funds and Lipper Utility Funds
    classifications. With respect to Mr.&#160;Neumann, such
    benchmarks for the Fund and other accounts is a customized
    benchmark combining Wilshire and MSCI Energy indices. There are
    no benchmarks associated with Messrs.&#160;McClements and
    Accettella compensation.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A smaller element of portfolio manager discretionary
    compensation may include consideration of: financial results,
    expense control, profit margins, strategic planning and
    implementation, quality of client service, market
</DIV>
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    <BR>
    A-32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
     share, corporate reputation, capital allocation, compliance and
    risk control, leadership, technology and innovation. These
    factors are considered collectively by BlackRock management and
    the relevant Chief Investment Officers.
</DIV>



<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Distribution
    of Discretionary Incentive Compensation</FONT></B>
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Discretionary incentive compensation is distributed to portfolio
    managers in a combination of cash and BlackRock, Inc. restricted
    stock units which vest ratably over a number of years. For some
    portfolio managers, discretionary incentive compensation is also
    distributed in deferred cash awards that notionally track the
    returns of select BlackRock investment products they manage and
    that vest ratably over a number of years. The BlackRock, Inc.
    restricted stock units, upon vesting, will be settled in
    BlackRock, Inc. common stock. Typically, the cash bonus, when
    combined with base salary, represents more than 60% of total
    compensation for the portfolio managers. Paying a portion of
    annual bonuses in stock puts compensation earned by a portfolio
    manager for a given year &#147;at risk&#148; based on
    BlackRock&#146;s ability to sustain and improve its performance
    over future periods. Providing a portion of annual bonuses in
    deferred cash awards that notionally track the BlackRock
    investment products they manage provides direct alignment with
    investment product results.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Long-Term Incentive Plan Awards&#160;&#151; </I>From time to
    time long-term incentive equity awards are granted to certain
    key employees to aid in retention, align their interests with
    long-term shareholder interests and motivate performance. Equity
    awards are generally granted in the form of BlackRock, Inc.
    restricted stock units that, once vested, settle in BlackRock,
    Inc. common stock. Ms.&#160;Anderson and Messrs.&#160;Shearer,
    McClements, Neumann and Accettella have each received long-term
    incentive awards.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Deferred Compensation Program&#160;&#151; </I>A portion of
    the compensation paid to eligible BlackRock employees may be
    voluntarily deferred into an account that tracks the performance
    of certain of the firm&#146;s investment products. Each
    participant in the deferred compensation program is permitted to
    allocate his deferred amounts among various BlackRock investment
    options. Ms.&#160;Anderson and Messrs.&#160;Shearer, McClements,
    Neumann and Accettella have each participated in the deferred
    compensation program.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Other compensation benefits.</I>&#160;&#160;In addition to
    base compensation and discretionary incentive compensation,
    portfolio managers may be eligible to receive or participate in
    one or more of the following:
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Incentive Savings Plans</I>&#160;&#151; BlackRock, Inc. has
    created a variety of incentive savings plans in which BlackRock
    employees are eligible to participate, including a 401(k) plan,
    the BlackRock Retirement Savings Plan (RSP), and the BlackRock
    Employee Stock Purchase Plan (ESPP). The employer contribution
    components of the RSP include a company match equal to 50% of
    the first 8% of eligible pay contributed to the plan capped at
    $5,000 per year, and a company retirement contribution equal to
    3-5% of eligible compensation. The RSP offers a range of
    investment options, including registered investment companies
    and collective investment funds managed by the firm. BlackRock
    contributions follow the investment direction set by
    participants for their own contributions or, absent participant
    investment direction, are invested into an index target date
    fund that corresponds to, or is closest to, the year in which
    the participant attains age&#160;65. The ESPP allows for
    investment in BlackRock common stock at a 5% discount on the
    fair market value of the stock on the purchase date. Annual
    participation in the ESPP is limited to the purchase of
    1,000&#160;shares or a dollar value of $25,000. Each portfolio
    manager is eligible to participate in these plans.
</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Securities Ownership of Portfolio
    Managers.</I>&#160;&#160;The Trust is a newly-organized
    investment company. Accordingly, as of the date of this SAI,
    none of the portfolio managers beneficially owned any securities
    issued by the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Potential Material Conflicts of
    Interest.</I>&#160;&#160;Real, potential or apparent conflicts
    of interest may arise when a portfolio manager has
    <FONT style="white-space: nowrap">day-to-day</FONT>
    portfolio management responsibilities with respect to more than
    one fund or account.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock has built a professional working environment,
    firm-wide compliance culture and compliance procedures and
    systems designed to protect against potential incentives that
    may favor one account over another. BlackRock has adopted
    policies and procedures that address the allocation of
    investment opportunities, execution of portfolio transactions,
    personal trading by employees and other potential conflicts of
    interest that are designed to ensure that all client accounts
    are treated equitably over time. Nevertheless, BlackRock
    furnishes investment
</DIV>
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    <BR>
    A-33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
     management and advisory services to numerous clients in
    addition to the Trust, and BlackRock may, consistent with
    applicable law, make investment recommendations to other clients
    or accounts (including accounts which are hedge funds or have
    performance or higher fees paid to BlackRock, or in which
    portfolio managers have a personal interest in the receipt of
    such fees), which may be the same as or different from those
    made to the Trust. In addition, BlackRock, its affiliates and
    significant shareholders and any officer, director, stockholder
    or employee may or may not have an interest in the securities
    whose purchase and sale BlackRock recommends to the Trust.
    BlackRock, or any of its affiliates or significant shareholders,
    or any officer, director, stockholder, employee or any member of
    their families may take different actions than those recommended
    to the Trust by BlackRock with respect to the same securities.
    Moreover, BlackRock may refrain from rendering any advice or
    services concerning securities of companies of which any of
    BlackRock&#146;s (or its affiliates&#146; or significant
    shareholders&#146;) officers, directors or employees are
    directors or officers, or companies as to which BlackRock or any
    of its affiliates or significant shareholders or the officers,
    directors and employees of any of them has any substantial
    economic interest or possesses material non-public information.
    Each portfolio manager also may manage accounts whose investment
    strategies may at times be opposed to the strategy utilized for
    a fund. It should also be noted that Mr.&#160;Neumann may be
    managing hedge fund
    <FONT style="white-space: nowrap">and/or</FONT> long
    only accounts, or may be part of a team managing hedge fund
    <FONT style="white-space: nowrap">and/or</FONT> long
    only accounts, subject to incentive fees. Mr.&#160;Neumann may
    therefore be entitled to receive a portion of any incentive fees
    earned on such accounts. Additional portfolio managers may in
    the future manage other such accounts or funds and may be
    entitled to receive incentive fees.
</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a fiduciary, BlackRock owes a duty of loyalty to its clients
    and must treat each client fairly. When BlackRock purchases or
    sells securities for more than one account, the trades must be
    allocated in a manner consistent with its fiduciary duties.
    BlackRock attempts to allocate investments in a fair and
    equitable manner among client accounts, with no account
    receiving preferential treatment. To this end, BlackRock has
    adopted policies that are intended to ensure that investment
    opportunities are allocated fairly and equitably among client
    accounts over time. These policies also seek to achieve
    reasonable efficiency in client transactions and provide
    BlackRock with sufficient flexibility to allocate investments in
    a manner that is consistent with the particular investment
    discipline and client base, as appropriate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has delegated the voting of proxies for the
    Trust&#146;s securities to the Advisor pursuant to the
    Advisor&#146;s proxy voting guidelines. Under these guidelines,
    the Advisor will vote proxies related to Trust securities in the
    best interests of the Trust and its shareholders. From time to
    time, a vote may present a conflict between the interests of the
    Trust&#146;s shareholders, on the one hand, and those of the
    Advisor, or any affiliated person of the Trust or the Advisor,
    on the other. In such event, provided that the Advisor&#146;s
    Equity Investment Policy Oversight Committee, or a
    <FONT style="white-space: nowrap">sub-committee</FONT>
    thereof (the &#147;Committee&#148;) is aware of the real or
    potential conflict, if the matter to be voted on represents a
    material, non-routine matter and if the Committee does not
    reasonably believe it is able to follow its general voting
    guidelines (or if the particular proxy matter is not addressed
    in the guidelines) and vote impartially, the Committee may
    retain an independent fiduciary to advise the Committee on how
    to vote or to cast votes on behalf of the Advisor&#146;s
    clients. If the Advisor determines not to retain an independent
    fiduciary, or does not desire to follow the advice of such
    independent fiduciary, the Committee shall determine how to vote
    the proxy after consulting with the Advisor&#146;s Portfolio
    Management Group
    <FONT style="white-space: nowrap">and/or</FONT> the
    Advisor&#146;s Legal&#160;and Compliance Department and
    concluding that the vote cast is in its client&#146;s best
    interest notwithstanding the conflict. A copy of the
    Trusts&#146; Proxy Voting Policy and Procedures is included as
    Appendix&#160;B to this SAI. Information regarding how the Trust
    voted proxies relating to portfolio securities for the
    <FONT style="white-space: nowrap">12-month</FONT>
    period ending June&#160;30 will be available (i)&#160;without
    charge, upon request, by calling
    <FONT style="white-space: nowrap">(800)&#160;441-7762;</FONT>
    and (ii)&#160;on the Securities and Exchange Commission&#146;s
    website at
    <I><FONT style="white-space: nowrap">http://www.sec.gov</FONT></I>.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Codes of
    Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust and the Advisors have adopted codes of ethics pursuant
    to
    <FONT style="white-space: nowrap">Rule&#160;17j-1</FONT>
    under the Investment Company Act. These codes permit personnel
    subject to the codes to invest in securities, including
    securities that may be purchased or held by the Trust. These
    codes can be reviewed and copied at the Securities and Exchange
    Commission&#146;s Public Reference Room in Washington,&#160;D.C.
    Information on the operation of the Public Reference
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Room may be obtained by calling the Securities and Exchange
    Commission at
    <FONT style="white-space: nowrap">(202)&#160;551-8090.</FONT>
    These codes of ethics are available on the EDGAR Database on the
    Securities and Exchange Commission&#146;s website
    <FONT style="white-space: nowrap">(http://www.sec.gov),</FONT>
    and copies of these codes may be obtained, after paying a
    duplicating fee, by electronic request at the following
    <FONT style="white-space: nowrap">e-mail</FONT>
    address: publicinfo@sec.gov, or by writing the Securities and
    Exchange Commission&#146;s Public Reference Section,
    Washington,&#160;D.C.
    <FONT style="white-space: nowrap">20549-0102.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock is independent in ownership and governance, with no
    single majority stockholder and a majority of independent
    directors. As of June&#160;30, 2011, PNC Financial Services
    Group, Inc. (&#147;PNC&#148;) owned 21.7% of BlackRock, Barclays
    PLC (&#147;Barclays&#148;) owned 19.7%, and institutional
    investors, employees and the public hold economic interests of
    58.6%. With regard to voting stock, PNC owned 24.6%, Barclays
    owned 2.2%, and institutional investors, employees and the
    public own 73.2% of voting shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the June&#160;1, 2011 repurchase of Bank of America
    Corporation&#146;s (&#147;Bank of America&#148;) ownership
    interest in BlackRock, PNC owned 20.2% of BlackRock, Barclays
    owned 19.5%, Bank of America, through its subsidiary Merrill
    Lynch&#160;&#038; Co. Inc., owned 7.1%, and institutional
    investors, employees and the public held economic interests of
    53.2%. With regard to voting stock, PNC owned 25.1%, Barclays
    owned 2.3%, and institutional investors, employees and the
    public owned 72.6% of voting shares; Bank of America did not
    hold any voting stock.
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PORTFOLIO
    TRANSACTIONS AND BROKERAGE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    are responsible for decisions to buy and sell securities for the
    Trust, the selection of brokers and dealers to effect the
    transactions and the negotiation of prices and any brokerage
    commissions. The securities in which the Trust invests are
    traded principally in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market. In the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, securities are generally traded on a &#147;net&#148;
    basis with dealers acting as principal for their own accounts
    without a stated commission, although the price of such
    securities usually includes a
    <FONT style="white-space: nowrap">mark-up</FONT> to
    the dealer. Securities purchased in underwritten offerings
    generally include, in the price, a fixed amount of compensation
    for the manager(s), underwriter(s) and dealer(s). The Trust may
    also purchase certain money market instruments directly from an
    issuer, in which case no commissions or discounts are paid.
    Purchases and sales of bonds on a stock exchange are effected
    through brokers who charge a commission for their services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    are responsible for effecting securities transactions of the
    Trust and will do so in a manner deemed fair and reasonable to
    shareholders of the Trust and not according to any formula. The
    Advisor&#146;s and the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    primary considerations in selecting the manner of executing
    securities transactions for the Trust will be prompt execution
    of orders, the size and breadth of the market for the security,
    the reliability, integrity and financial condition and execution
    capability of the firm, the difficulty in executing the order,
    and the best net price. There are many instances when, in the
    judgment of the Advisor or the
    <FONT style="white-space: nowrap">Sub-Advisors,</FONT>
    more than one firm can offer comparable execution services. In
    selecting among such firms, consideration is given to those
    firms which supply research and other services in addition to
    execution services. Consideration may also be given to the sale
    of shares of the Trust. However, it is not the policy of
    BlackRock, absent special circumstances, to pay higher
    commissions to a firm because it has supplied such research or
    other services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Advisor and the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    are able to fulfill their obligation to furnish a continuous
    investment program to the Trust without receiving research or
    other information from brokers; however, each considers access
    to such information to be an important element of financial
    management. Although such information is considered useful, its
    value is not determinable, as it must be reviewed and
    assimilated by the Advisor
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors,</FONT>
    and does not reduce the Advisor&#146;s
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    normal research activities in rendering investment advice under
    the investment management agreement or the
    <FONT style="white-space: nowrap">sub-investment</FONT>
    advisory agreements. It is possible that the Advisor&#146;s
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    expenses could be materially increased if it attempted to
    purchase this type of information or generate it through its own
    staff.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    One or more of the other investment companies or accounts which
    the Advisor
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    manage may own from time to time some of the same investments as
    the Trust. Investment decisions for the Trust
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    are made independently from those of such other investment
    companies or accounts; however, from time to time, the same
    investment decision may be made for more than one company or
    account. When two or more companies or accounts seek to purchase
    or sell the same securities, the securities actually purchased
    or sold will be allocated among the companies and accounts on a
    good faith equitable basis by the Advisor
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">Sub-Advisors</FONT>
    in their discretion in accordance with the accounts&#146;
    various investment objectives. In some cases, this system may
    adversely affect the price or size of the position obtainable
    for the Trust. In other cases, however, the ability of the Trust
    to participate in volume transactions may produce better
    execution for the Trust. It is the opinion of the Trust&#146;s
    Board that this advantage, when combined with the other benefits
    available due to the Advisor&#146;s or the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    organization, outweighs any disadvantages that may be said to
    exist from exposure to simultaneous transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust has received an exemptive order from the SEC
    permitting it to lend portfolio securities to its affiliates.
    Pursuant to that order, the Trust also has retained an
    affiliated entity of the Advisor as the securities lending agent
    (the &#147;lending agent&#148;) for a fee, including a fee based
    on a share of the returns on investment of cash collateral. In
    connection with securities lending activities, the lending agent
    may, on behalf of the Trust, invest cash collateral received by
    that Trust for such loans, among other things, in a private
    investment company managed by the lending agent or in registered
    money market funds advised by the Advisor or its affiliates.
    Pursuant to the same order, the Trust may invest its uninvested
    cash in registered money market funds advised by the Advisor or
    its affiliates, or in a private investment company managed by
    the lending agent. If the Trust acquires shares in either the
    private investment company or an affiliated money market fund,
    shareholders would bear both their proportionate share of the
    Trust&#146;s expenses and, indirectly, the expenses of such
    other entities. However, in accordance with the exemptive order,
    the investment advisor to the private investment company will
    not charge any advisory fees with respect to shares purchased by
    the Trust. Such shares also will not be subject to a sales load,
    redemption fee, distribution fee or service fee, or in the case
    of the shares of an affiliated money market fund, the payment of
    any such sales load, redemption fee, distribution fee or service
    fee will be offset by the Advisor&#146;s waiver of a portion of
    its advisory fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is not the Trust&#146;s policy to engage in transactions with
    the objective of seeking profits from short-term trading.
    However, the annual portfolio turnover rate of the trust may be
    greater than 100%. Because it is difficult to predict accurately
    portfolio turnover rates, actual turnover may be higher or
    lower. Higher portfolio turnover results in increased Trust
    costs, including brokerage commissions, dealer
    <FONT style="white-space: nowrap">mark-ups</FONT> and
    other transaction costs on the sale of securities and on the
    reinvestment in other securities.
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CONFLICTS
    OF INTEREST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Barclays and PNC each have a significant economic interest in
    BlackRock, Inc., the parent of the Advisors. PNC is considered
    to be an affiliate of BlackRock, Inc., under the Investment
    Company Act. Certain activities of the Advisors, BlackRock, Inc.
    and their affiliates (collectively, &#147;BlackRock&#148;) and
    PNC and its affiliates (collectively, &#147;PNC&#148; and
    together with BlackRock, &#147;Affiliates&#148;), and those of
    Barclays and its affiliates (the &#147;Barclays Entities&#148;),
    with respect to the Trust
    <FONT style="white-space: nowrap">and/or</FONT> other
    accounts managed by BlackRock, PNC or Barclays Entities, may
    give rise to actual or perceived conflicts of interest, such as
    those described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock is one of the world&#146;s largest asset management
    firms. PNC is a diversified financial services organization
    spanning the retail, business and corporate markets. Barclays is
    a major global financial services provider engaged in a range of
    activities including retail and commercial banking, credit
    cards, investment banking, and wealth management. BlackRock and
    PNC are affiliates of one another under the Investment Company
    Act. BlackRock, PNC, Barclays and their respective affiliates
    (including, for these purposes, their directors, partners,
    trustees, managing members, officers and employees), including
    the entities and personnel who may be involved in the investment
    activities and business operations of the Trust, are engaged
    worldwide in businesses, including equity, fixed income, cash
    management and alternative investments, and have interests other
    than that of managing the Trust. These are considerations of
    which investors in the Trust should be aware, and which may
    cause conflicts of interest that could disadvantage the Trust
    and its shareholders. These activities and interests include
    potential multiple advisory, transactional, financial and other
    interests in securities and other instruments, and companies
    that may be purchased or sold by the Trust.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates, as well as the Barclays Entities,
    have proprietary interests in, and may manage or advise with
    respect to, accounts or funds (including separate accounts and
    other funds and collective investment vehicles) that have
    investment objectives similar to those of the Trust
    <FONT style="white-space: nowrap">and/or</FONT> that
    engage in transactions in the same types of securities,
    currencies and instruments as the Trust. One or more Affiliates
    and Barclays Entities are also major participants in the global
    currency, equities, swap and fixed income markets, in each case
    both on a proprietary basis and for the accounts of customers.
    As such, one or more Affiliates or Barclays Entities are or may
    be actively engaged in transactions in the same securities,
    currencies, and instruments in which the Trust may invest. Such
    activities could affect the prices and availability of the
    securities, currencies, and instruments in which the Trust
    invests, which could have an adverse impact on the Trust&#146;s
    performance. Such transactions, particularly in respect of most
    proprietary accounts or customer accounts, will be executed
    independently of the Trust&#146;s transactions and thus at
    prices or rates that may be more or less favorable than those
    obtained by the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When BlackRock and its Affiliates or the Barclays Entities seek
    to purchase or sell the same assets for their managed accounts,
    the assets actually purchased or sold may be allocated among the
    accounts on a basis determined in their good faith discretion to
    be equitable. In some cases, this system may adversely affect
    the size or price of the assets purchased or sold for the Trust.
    In addition, transactions in investments by one or more other
    accounts managed by BlackRock or its Affiliates or a Barclays
    Entity may have the effect of diluting or otherwise
    disadvantaging the values, prices or investment strategies of
    the Trust, particularly, but not limited to, with respect to
    small capitalization, emerging market or less liquid strategies.
    This may occur when investment decisions regarding the Trust are
    based on research or other information that is also used to
    support decisions for other accounts. When BlackRock or its
    Affiliates or a Barclays Entity implements a portfolio decision
    or strategy on behalf of another account ahead of, or
    contemporaneously with, similar decisions or strategies for the
    Trust, market impact, liquidity constraints, or other factors
    could result in the Trust receiving less favorable trading
    results and the costs of implementing such decisions or
    strategies could be increased or the Trust could otherwise be
    disadvantaged. BlackRock or its Affiliates or a Barclays Entity
    may, in certain cases, elect to implement internal policies and
    procedures designed to limit such consequences, which may cause
    the Trust to be unable to engage in certain activities,
    including purchasing or disposing of securities, when it might
    otherwise be desirable for it to do so.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Conflicts may also arise because portfolio decisions regarding
    the Trust may benefit other accounts managed by BlackRock or its
    Affiliates or a Barclays Entity. For example, the sale of a long
    position or establishment of a short position by the Trust may
    impair the price of the same security sold short by (and
    therefore benefit) one or more Affiliates or Barclays Entities
    or their other accounts, and the purchase of a security or
    covering of a short position in a security by the Trust may
    increase the price of the same security held by (and therefore
    benefit) one or more Affiliates or Barclays Entities or their
    other accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates or a Barclays Entity and their
    clients may pursue or enforce rights with respect to an issuer
    in which the Trust has invested, and those activities may have
    an adverse effect on the Trust. As a result, prices,
    availability, liquidity and terms of the Trust&#146;s
    investments may be negatively impacted by the activities of
    BlackRock or its Affiliates or a Barclays Entity or their
    clients, and transactions for the Trust may be impaired or
    effected at prices or terms that may be less favorable than
    would otherwise have been the case.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The results of the Trust&#146;s investment activities may differ
    significantly from the results achieved by BlackRock and its
    Affiliates or the Barclays Entities for their proprietary
    accounts or other accounts (including investment companies or
    collective investment vehicles) managed or advised by them. It
    is possible that one or more Affiliate- or Barclays
    Entity-managed accounts and such other accounts will achieve
    investment results that are substantially more or less favorable
    than the results achieved by the Trust. Moreover, it is possible
    that the Trust will sustain losses during periods in which one
    or more Affiliates or Barclays Entity-managed accounts achieve
    significant profits on their trading for proprietary or other
    accounts. The opposite result is also possible. The investment
    activities of one or more Affiliates or Barclays Entities for
    their proprietary accounts and accounts under their management
    may also limit the investment opportunities for the Trust in
    certain emerging and other markets in which limitations are
    imposed upon the amount of investment, in the aggregate or in
    individual issuers, by affiliated foreign investors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    From time to time, the Trust&#146;s activities may also be
    restricted because of regulatory restrictions applicable to one
    or more Affiliates or Barclays Entities,
    <FONT style="white-space: nowrap">and/or</FONT> their
    internal policies designed to comply with such restrictions.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a result, there may be periods, for example, when BlackRock,
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more Affiliates or Barclays Entities, will not initiate or
    recommend certain types of transactions in certain securities or
    instruments with respect to which BlackRock
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more Affiliates or Barclays Entities are performing services
    or when position limits have been reached.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with its management of the Trust, BlackRock may
    have access to certain fundamental analysis and proprietary
    technical models developed by one or more Affiliates or Barclays
    Entities. BlackRock will not be under any obligation, however,
    to effect transactions on behalf of the Trust in accordance with
    such analysis and models. In addition, neither BlackRock nor any
    of its Affiliates, nor any Barclays Entity, will have any
    obligation to make available any information regarding their
    proprietary activities or strategies, or the activities or
    strategies used for other accounts managed by them, for the
    benefit of the management of the Trust and it is not anticipated
    that BlackRock will have access to such information for the
    purpose of managing the Trust. The proprietary activities or
    portfolio strategies of BlackRock and its Affiliates and the
    Barclays Entities, or the activities or strategies used for
    accounts managed by them or other customer accounts could
    conflict with the transactions and strategies employed by
    BlackRock in managing the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, certain principals and certain employees of
    BlackRock are also principals or employees of BlackRock or
    another Affiliate. As a result, the performance by these
    principals and employees of their obligations to such other
    entities may be a consideration of which investors in the Trust
    should be aware.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock may enter into transactions and invest in securities,
    instruments and currencies on behalf of the Trust in which
    customers of BlackRock or its Affiliates or a Barclays Entity,
    or, to the extent permitted by the SEC, BlackRock or another
    Affiliate or a Barclays Entity, serves as the counterparty,
    principal or issuer. In such cases, such party&#146;s interests
    in the transaction will be adverse to the interests of the
    Trust, and such party may have no incentive to assure that the
    Trust obtains the best possible prices or terms in connection
    with the transactions. In addition, the purchase, holding and
    sale of such investments by the Trust may enhance the
    profitability of BlackRock or its Affiliates or a Barclays
    Entity. One or more Affiliates or Barclays Entities may also
    create, write or issue derivatives for their customers, the
    underlying securities, currencies or instruments of which may be
    those in which the Trust invests or which may be based on the
    performance of the Trust. The Trust may, subject to applicable
    law, purchase investments that are the subject of an
    underwriting or other distribution by one or more Affiliates or
    Barclays Entities and may also enter into transactions with
    other clients of an Affiliate or Barclays Entity where such
    other clients have interests adverse to those of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    At times, these activities may cause departments of BlackRock or
    its Affiliates or a Barclays Entity to give advice to clients
    that may cause these clients to take actions adverse to the
    interests of the Trust. To the extent affiliated transactions
    are permitted, the Trust will deal with BlackRock and its
    Affiliates or Barclays Entities on an arms-length basis.
    BlackRock or its Affiliates or a Barclays Entity may also have
    an ownership interest in certain trading or information systems
    used by the Trust. The Trust&#146;s use of such trading or
    information systems may enhance the profitability of BlackRock
    and its Affiliates or Barclays Entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    One or more Affiliates or one of the Barclays Entities may act
    as broker, dealer, agent, lender or adviser or in other
    commercial capacities for the Trust. It is anticipated that the
    commissions,
    <FONT style="white-space: nowrap">mark-ups,</FONT>
    mark-downs, financial advisory fees, underwriting and placement
    fees, sales fees, financing and commitment fees, brokerage fees,
    other fees, compensation or profits, rates, terms and conditions
    charged by an Affiliate or Barclays Entity will be in its view
    commercially reasonable, although each Affiliate or Barclays
    Entity, including its sales personnel, will have an interest in
    obtaining fees and other amounts that are favorable to the
    Affiliate or Barclays Entity and such sales personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to applicable law, the Affiliates and Barclays Entities
    (and their personnel and other distributors) will be entitled to
    retain fees and other amounts that they receive in connection
    with their service to the Trust as broker, dealer, agent,
    lender, adviser or in other commercial capacities and no
    accounting to the Trust or its shareholders will be required,
    and no fees or other compensation payable by the Trust or its
    shareholders will be reduced by reason of receipt by an
    Affiliate or Barclays Entity of any such fees or other amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When an Affiliate or Barclays Entity acts as broker, dealer,
    agent, adviser or in other commercial capacities in relation to
    the Trust, the Affiliate or Barclays Entity may take commercial
    steps in its own interests, which may have
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    an adverse effect on the Trust. The Trust will be required to
    establish business relationships with its counterparties based
    on the Trust&#146;s own credit standing. Neither BlackRock nor
    any of the Affiliates, nor any Barclays Entity, will have any
    obligation to allow their credit to be used in connection with
    the Trust&#146;s establishment of its business relationships,
    nor is it expected that the Trust&#146;s counterparties will
    rely on the credit of BlackRock or any of the Affiliates or
    Barclays Entities in evaluating the Trust&#146;s
    creditworthiness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Purchases and sales of securities for the Trust may be bunched
    or aggregated with orders for other BlackRock client accounts.
    BlackRock and its Affiliates and the Barclays Entities, however,
    are not required to bunch or aggregate orders if portfolio
    management decisions for different accounts are made separately,
    or if they determine that bunching or aggregating is not
    practicable, required or with cases involving client direction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prevailing trading activity frequently may make impossible the
    receipt of the same price or execution on the entire volume of
    securities purchased or sold. When this occurs, the various
    prices may be averaged, and the Trust will be charged or
    credited with the average price. Thus, the effect of the
    aggregation may operate on some occasions to the disadvantage of
    the Trust. In addition, under certain circumstances, the Trust
    will not be charged the same commission or commission equivalent
    rates in connection with a bunched or aggregated order.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock may select brokers (including, without limitation,
    Affiliates or Barclays Entities) that furnish BlackRock, the
    Trust, other BlackRock client accounts or other Affiliates or
    Barclays Entities or personnel, directly or through
    correspondent relationships, with research or other appropriate
    services which provide, in BlackRock&#146;s view, appropriate
    assistance to BlackRock in the investment decision-making
    process (including with respect to futures, fixed price
    offerings and
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    transactions). Such research or other services may include, to
    the extent permitted by law, research reports on companies,
    industries and securities; economic and financial data;
    financial publications; proxy analysis; trade industry seminars;
    computer data bases; research-oriented software; and other
    services and products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Research or other services obtained in this manner may be used
    in servicing the Trust and other BlackRock client accounts,
    including in connection with BlackRock client accounts other
    than those that pay commissions to the broker relating to the
    research or other service arrangements. Such products and
    services may disproportionately benefit other BlackRock client
    accounts relative to the Trust based on the amount of brokerage
    commissions paid by the Trust and such other BlackRock client
    accounts. For example, research or other services that are paid
    for through one client&#146;s commissions may not be used in
    managing that client&#146;s account. In addition, other
    BlackRock client accounts may receive the benefit, including
    disproportionate benefits, of economies of scale or price
    discounts in connection with products and services that may be
    provided to the Trust and to such other BlackRock client
    accounts. To the extent that BlackRock uses soft dollars, it
    will not have to pay for those products and services itself.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock may receive research that is bundled with the trade
    execution, clearing,
    <FONT style="white-space: nowrap">and/or</FONT>
    settlement services provided by a particular broker-dealer. To
    the extent that BlackRock receives research on this basis, many
    of the same conflicts related to traditional soft dollars may
    exist. For example, the research effectively will be paid by
    client commissions that also will be used to pay for the
    execution, clearing, and settlement services provided by the
    broker-dealer and will not be paid by BlackRock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock may endeavor to execute trades through brokers who,
    pursuant to such arrangements, provide research or other
    services in order to ensure the continued receipt of research or
    other services BlackRock believes are useful in its investment
    decision-making process. BlackRock may from time to time choose
    not to engage in the above described arrangements to varying
    degrees. BlackRock may also enter into commission sharing
    arrangements under which BlackRock may execute transactions
    through a broker-dealer, including, where permitted, an
    Affiliate or Barclays Entity, and request that the broker-dealer
    allocate a portion of the commissions or commission credits to
    another firm that provides research to BlackRock. To the extent
    that BlackRock engages in commission sharing arrangements, many
    of the same conflicts related to traditional soft dollars may
    exist.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock may utilize certain electronic crossing networks
    (&#147;ECNs&#148;) in executing client securities transactions
    for certain types of securities. These ECNs may charge fees for
    their services, including access fees and transaction fees. The
    transaction fees, which are similar to commissions or
    markups/markdowns, will generally be charged to clients and,
    like commissions and markups/markdowns, would generally be
    included in the cost of the securities purchased. Access fees
    may be paid by BlackRock even though incurred in connection with
    executing
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    transactions on behalf of clients, including the Trust. In
    certain circumstances, ECNs may offer volume discounts that will
    reduce the access fees typically paid by BlackRock. This would
    have the effect of reducing the access fees paid by BlackRock.
    BlackRock will only utilize ECNs consistent with its obligation
    to seek to obtain best execution in client transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock has adopted policies and procedures designed to
    prevent conflicts of interest from influencing proxy voting
    decisions that it makes on behalf of advisory clients, including
    the Trust, and to help ensure that such decisions are made in
    accordance with BlackRock&#146;s fiduciary obligations to its
    clients. Nevertheless, notwithstanding such proxy voting
    policies and procedures, actual proxy voting decisions of
    BlackRock may have the effect of favoring the interests of other
    clients or businesses of other divisions or units of BlackRock
    <FONT style="white-space: nowrap">and/or</FONT> its
    Affiliates or a Barclays Entity, provided that BlackRock
    believes such voting decisions to be in accordance with its
    fiduciary obligations. For a more detailed discussion of these
    policies and procedures, see &#147;Management of the
    Trust&#160;&#151; Proxy Voting Policies.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is also possible that, from time to time, BlackRock or its
    Affiliates or a Barclays Entity may, although they are not
    required to, purchase and hold shares of the Trust. Increasing
    the Trust&#146;s assets may enhance investment flexibility and
    diversification and may contribute to economies of scale that
    tend to reduce the Trust&#146;s expense ratio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is possible that the Trust may invest in securities of
    companies with which an Affiliate or a Barclays Entity has or is
    trying to develop investment banking relationships as well as
    securities of entities in which BlackRock or its Affiliates or a
    Barclays Entity has significant debt or equity investments or in
    which an Affiliate or Barclays Entity makes a market. The Trust
    also may invest in securities of companies to which an Affiliate
    or a Barclays Entity provides or may some day provide research
    coverage. Such investments could cause conflicts between the
    interests of the Trust and the interests of other clients of
    BlackRock or its Affiliates or a Barclays Entity. In making
    investment decisions for the Trust, BlackRock is not permitted
    to obtain or use material non-public information acquired by any
    division, department or Affiliate of BlackRock or of a Barclays
    Entity in the course of these activities. In addition, from time
    to time, the activities of an Affiliate or a Barclays Entity may
    limit the Trust&#146;s flexibility in purchases and sales of
    securities. When an Affiliate is engaged in an underwriting or
    other distribution of securities of an entity, BlackRock may be
    prohibited from purchasing or recommending the purchase of
    certain securities of that entity for the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates and the Barclays Entities, their
    personnel and other financial service providers have interests
    in promoting sales of the Trust. With respect to BlackRock and
    its Affiliates and Barclays Entities and their personnel, the
    remuneration and profitability relating to services to and sales
    of the Trust or other products may be greater than remuneration
    and profitability relating to services to and sales of certain
    funds or other products that might be provided or offered.
    BlackRock and its Affiliates or Barclays Entities and their
    sales personnel may directly or indirectly receive a portion of
    the fees and commissions charged to the Trust or its
    shareholders. BlackRock and its advisory or other personnel may
    also benefit from increased amounts of assets under management.
    Fees and commissions may also be higher than for other products
    or services, and the remuneration and profitability to BlackRock
    or its Affiliates or a Barclays Entity and such personnel
    resulting from transactions on behalf of or management of the
    Trust may be greater than the remuneration and profitability
    resulting from other funds or products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates or a Barclays Entity and their
    personnel may receive greater compensation or greater profit in
    connection with an account for which BlackRock serves as an
    advisor than with an account advised by an unaffiliated
    investment advisor. Differentials in compensation may be related
    to the fact that BlackRock may pay a portion of its advisory fee
    to its Affiliate or to a Barclays Entity, or relate to
    compensation arrangements, including for portfolio management,
    brokerage transactions or account servicing. Any differential in
    compensation may create a financial incentive on the part of
    BlackRock or its Affiliates or Barclays Entities and their
    personnel to recommend BlackRock over unaffiliated investment
    advisors or to effect transactions differently in one account
    over another.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates or a Barclays Entity may provide
    valuation assistance to certain clients with respect to certain
    securities or other investments and the valuation
    recommendations made for their clients&#146; accounts may differ
    from the valuations for the same securities or investments
    assigned by the Trust&#146;s pricing vendors, especially if such
    valuations are based on broker-dealer quotes or other data
    sources unavailable to the
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Trust&#146;s pricing vendors. While BlackRock will generally
    communicate its valuation information or determinations to the
    Trust&#146;s pricing vendors
    <FONT style="white-space: nowrap">and/or</FONT> fund
    accountants, there may be instances where the Trust&#146;s
    pricing vendors or fund accountants assign a different valuation
    to a security or other investment than the valuation for such
    security or investment determined or recommended by BlackRock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the extent permitted by applicable law, the Trust may invest
    all or some of its short term cash investments in any money
    market fund or similarly-managed private fund or exchange-traded
    fund advised or managed by BlackRock. In connection with any
    such investments, the Trust, to the extent permitted by the
    Investment Company Act, may pay its share of expenses of a money
    market fund in which it invests, which may result in the Trust
    bearing some additional expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates or a Barclays Entity and their
    directors, officers and employees, may buy and sell securities
    or other investments for their own accounts, and may have
    conflicts of interest with respect to investments made on behalf
    of the Trust. As a result of differing trading and investment
    strategies or constraints, positions may be taken by directors,
    officers, employees and Affiliates of BlackRock or by Barclays
    Entities that are the same, different from or made at different
    times than positions taken for the Trust. To lessen the
    possibility that the Trust will be adversely affected by this
    personal trading, the Trust and BlackRock each have adopted a
    Code of Ethics in compliance with Section&#160;17(j) of the
    Investment Company Act that restricts securities trading in the
    personal accounts of investment professionals and others who
    normally come into possession of information regarding the
    Trust&#146;s portfolio transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates will not purchase securities or
    other property from, or sell securities or other property to,
    the Trust, except that the Trust may, in accordance with rules
    adopted under the Investment Company Act, engage in transactions
    with accounts that are affiliated with the Trust as a result of
    common officers, directors, or investment advisors or pursuant
    to exemptive orders granted to the Trust
    <FONT style="white-space: nowrap">and/or</FONT>
    BlackRock by the SEC. These transactions would be affected in
    circumstances in which BlackRock determined that it would be
    appropriate for the Trust to purchase and another client of
    BlackRock to sell, or the Trust, to sell and another client of
    BlackRock to purchase, the same security or instrument on the
    same day. From time to time, the activities of the Trust may be
    restricted because of regulatory requirements applicable to
    BlackRock or its Affiliates or a Barclays Entity
    <FONT style="white-space: nowrap">and/or</FONT>
    BlackRock&#146;s internal policies designed to comply with,
    limit the applicability of, or otherwise relate to such
    requirements. A client not advised by BlackRock would not be
    subject to some of those considerations. There may be periods
    when BlackRock may not initiate or recommend certain types of
    transactions, or may otherwise restrict or limit their advice in
    certain securities or instruments issued by or related to
    companies for which an Affiliate or a Barclays Entity is
    performing investment banking, market making or other services
    or has proprietary positions. For example, when an Affiliate is
    engaged in an underwriting or other distribution of securities
    of, or advisory services for, a company, the Trust may be
    prohibited from or limited in purchasing or selling securities
    of that company. Similar situations could arise if personnel of
    BlackRock or its Affiliates or a Barclays Entity serve as
    directors of companies the securities of which the Trust wishes
    to purchase or sell. However, if permitted by applicable law,
    the Trust may purchase securities or instruments that are issued
    by such companies or are the subject of an underwriting,
    distribution, or advisory assignment by an Affiliate or a
    Barclays Entity, or in cases in which personnel of BlackRock or
    its Affiliates or of Barclays Entities are directors or officers
    of the issuer. The investment activities of one or more
    Affiliates or Barclays Entities for their proprietary accounts
    and for client accounts may also limit the investment strategies
    and rights of the Trust. For example, in regulated industries,
    in certain emerging or international markets, in corporate and
    regulatory ownership definitions, in certain futures and
    derivative transactions, and to comply with certain provisions
    of the Investment Company Act that prohibit affiliated
    transactions there may be limits on the aggregate amount of
    investment by affiliated investors that may not be exceeded
    without the grant of a license or other regulatory or corporate
    consent or, if exceeded, may cause BlackRock, the Trust or other
    client accounts to suffer disadvantages or business
    restrictions. These limitations may cause the Trust to invest in
    different portfolios than other BlackRock funds, which may
    result in the Trust investing on less advantageous terms that
    such other funds or in different types of securities, such as
    non-voting securities, in order to comply with regulatory
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If certain aggregate ownership thresholds are reached or certain
    transactions undertaken, the ability of BlackRock on behalf of
    clients (including the Trust) to purchase or dispose of
    investments, or exercise rights or undertake business
    transactions, may be restricted by regulation or otherwise
    impaired. As a result, BlackRock, on
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    behalf of clients (including the Trust), may limit purchases,
    sell existing investments, or otherwise restrict or limit the
    exercise of rights (including voting rights) when BlackRock, in
    its sole discretion, deems it appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates and Barclays Entities may maintain
    securities indices as part of their product offerings.
    Index-based funds seek to track the performance of securities
    indices and may use the name of the index in the fund name.
    Index providers, including BlackRock and its Affiliates and
    Barclays Entities, may be paid licensing fees for use of their
    index or index name. BlackRock and its Affiliates and Barclays
    Entities will not be obligated to license their indices to
    BlackRock, and BlackRock cannot be assured that the terms of any
    index licensing agreement with BlackRock and its Affiliates and
    Barclays Entities will be as favorable as those terms offered to
    other index licensees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock and its Affiliates and Barclays Entities may serve as
    Authorized Participants in the creation and redemption of
    exchange traded funds, including funds advised by affiliates of
    BlackRock. BlackRock and its Affiliates and Barclays Entities
    may therefore be deemed to be participants in a distribution of
    such exchange traded funds, which could render them statutory
    underwriters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Custody arrangements may lead to potential conflicts of interest
    with BlackRock where BlackRock has agreed to waive fees
    <FONT style="white-space: nowrap">and/or</FONT>
    reimburse ordinary operating expenses in order to cap expenses
    of the Trust. This is because the custody arrangements with the
    Custodian may have the effect of reducing custody fees when the
    Trust leaves cash balances uninvested. When the Trust&#146;s
    actual operating expense ratio exceeds a stated cap, a reduction
    in custody fees reduces the amount of waivers
    <FONT style="white-space: nowrap">and/or</FONT>
    reimbursements BlackRock would be required to make to the Trust.
    This could be viewed as having the potential to provide
    BlackRock an incentive to keep high positive cash balances for a
    Trust with an expense cap in order to offset fund custody fees
    that BlackRock might otherwise reimburse. However,
    BlackRock&#146;s portfolio managers do not intentionally keep
    uninvested balances high, but rather make investment decisions
    that they anticipate will be beneficial to fund performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Present and future activities of BlackRock and its Affiliates
    and Barclays Entities, including BlackRock Advisors, LLC, in
    addition to those described in this section, may give rise to
    additional conflicts of interest.
</DIV>

<A name='Y93113131'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust intends to hold annual meetings of shareholders so
    long as the common shares are listed on a national securities
    exchange and such meetings are required as a condition to such
    listing.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The terms of preferred shares, if any, issued by the Trust,
    including their dividend rate, voting rights, liquidation
    preference and redemption provisions, would be determined by the
    Board (subject to applicable law and the Trust&#146;s Agreement
    and Declaration of Trust) if and when it authorizes a preferred
    shares offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Board determines to proceed with an offering of preferred
    shares, the terms of the preferred shares may be the same as, or
    different from, the terms described below, subject to applicable
    law and the Trust&#146;s Agreement and Declaration of Trust. The
    Board, without the approval of the holders of common shares, may
    authorize an offering of preferred shares or may determine not
    to authorize such an offering, and may fix the terms of the
    preferred shares to be offered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Liquidation Preference.</I>&#160;&#160;In the event of any
    voluntary or involuntary liquidation, dissolution or winding up
    of the Trust, the holders of any preferred shares then
    outstanding would be entitled to receive a preferential
    liquidating distribution, which is expected to equal the
    original purchase price per preferred share plus accrued and
    unpaid dividends, whether or not declared, before any
    distribution of assets is made to holders of common shares.
    After payment of the full amount of the liquidating distribution
    to which they are entitled, the holders of preferred shares
    would not be entitled to any further participation in any
    distribution of assets by the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Voting Rights.</I>&#160;&#160;The Investment Company Act
    requires that the holders of any preferred shares, voting
    separately as a single class, have the right to elect at least
    two trustees at all times. The remaining trustees will be
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    elected by holders of common shares and preferred shares, voting
    together as a single class. In addition, subject to the prior
    rights, if any, of the holders of any other class of senior
    securities outstanding, the holders of any preferred shares have
    the right to elect a majority of the trustees of the Trust at
    any time two years&#146; dividends on any preferred shares are
    unpaid. The Investment Company Act also requires that, in
    addition to any approval by shareholders that might otherwise be
    required, the approval of the holders of a majority of any
    outstanding preferred shares, voting separately as a class,
    would be required to (1)&#160;adopt any plan of reorganization
    that would adversely affect the preferred shares, and
    (2)&#160;take any action requiring a vote of security holders
    under Section&#160;13(a) of the Investment Company Act,
    including, among other things, changes in the Trust&#146;s
    subclassification as a closed-end investment company or changes
    in its fundamental investment restrictions. See &#147;Certain
    Provisions in the Agreement and Declaration of Trust&#148; in
    the Trust&#146;s prospectus. As a result of these voting rights,
    the Trust&#146;s ability to take any such actions may be impeded
    to the extent that there are any preferred shares outstanding.
    The Board anticipates that, except as otherwise indicated in the
    prospectus and except as otherwise required by applicable law,
    holders of preferred shares will have equal voting rights with
    holders of common shares (one vote per share, unless otherwise
    required by the Investment Company Act) and will vote together
    with holders of common shares as a single class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The affirmative vote of the holders of a majority of the
    outstanding preferred shares, voting as a separate class, will
    be required to amend, alter or repeal any of the preferences,
    rights or powers of holders of preferred shares so as to affect
    materially and adversely such preferences, rights or powers, or
    to increase or decrease the authorized number of preferred
    shares. The class vote of holders of preferred shares described
    above will in each case be in addition to any other vote
    required to authorize the action in question.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Redemption, Purchase and Sale of Preferred Shares by the
    Trust.</I>&#160;&#160;The terms of any preferred shares that may
    be offered are expected to provide that (1)&#160;they are
    redeemable by the Trust in whole or in part at the original
    purchase price per share plus accrued dividends per share,
    (2)&#160;the Trust may tender for or purchase preferred shares
    and (3)&#160;the Trust may subsequently resell any shares so
    tendered for or purchased. Any redemption or purchase of
    preferred shares by the Trust will reduce the leverage
    applicable to the common shares, while any resale of shares by
    the Trust will increase that leverage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board (subject to applicable law and the Trust&#146;s
    Agreement and Declaration of Trust) may authorize an offering,
    without the approval of the holders of common shares and,
    depending on their terms, any Preferred Shares outstanding at
    that time, of other classes of shares, or other classes or
    series of shares, as they determine to be necessary, desirable
    or appropriate, having such terms, rights, preferences,
    privileges, limitations and restrictions as the Board sees fit.
    The Trust currently does not expect to issue any other classes
    of shares, or series of shares, except for the common shares.
</DIV>

<A name='Y93113132'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">REPURCHASE
    OF COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is a closed-end management investment company and as
    such its shareholders will not have the right to cause the Trust
    to redeem their shares. Instead, the Trust&#146;s common shares
    will trade in the open market at a price that will be a function
    of several factors, including dividend levels (which are in turn
    affected by expenses), net asset value, call protection,
    dividend stability, relative demand for and supply of such
    shares in the market, general market and economic conditions and
    other factors. Because shares of a closed-end investment company
    may frequently trade at prices lower than net asset value, the
    Board may consider action that might be taken to reduce or
    eliminate any material discount from net asset value in respect
    of common shares, which may include the repurchase of such
    shares in the open market or in private transactions, the making
    of a tender offer for such shares, or the conversion of the
    Trust to an open-end investment company. The Board may decide
    not to take any of these actions. In addition, there can be no
    assurance that share repurchases or tender offers, if
    undertaken, will reduce market discount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notwithstanding the foregoing, at any time when the Trust has
    Preferred Shares outstanding, the Trust may not purchase, redeem
    or otherwise acquire any of its common shares unless
    (1)&#160;all accrued Preferred Shares dividends have been paid
    and (2)&#160;at the time of such purchase, redemption or
    acquisition, the net asset value of the Trust&#146;s portfolio
    (determined after deducting the acquisition price of the common
    shares) is at least 200% of the liquidation value of any
    outstanding Preferred Shares (expected to equal the original
    purchase price per share plus any accrued
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    and unpaid dividends thereon). Any service fees incurred in
    connection with any tender offer made by the Trust will be borne
    by the Trust and will not reduce the stated consideration to be
    paid to tendering shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to its investment restrictions, the Trust may borrow to
    finance the repurchase of shares or to make a tender offer.
    Interest on any borrowings to finance share repurchase
    transactions or the accumulation of cash by the Trust in
    anticipation of share repurchases or tenders will reduce the
    Trust&#146;s net income. Any share repurchase, tender offer or
    borrowing that might be approved by the Board would have to
    comply with the Exchange Act, the Investment Company Act and the
    rules and regulations thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Although the decision to take action in response to a discount
    from net asset value will be made by the Board at the time it
    considers such issue, it is the Board&#146;s present policy,
    which may be changed by the Board, not to authorize repurchases
    of common shares or a tender offer for such shares if:
    (1)&#160;such transactions, if consummated, would
    (a)&#160;result in the delisting of the common shares from the
    New York Stock Exchange, or (b)&#160;impair the Trust&#146;s
    status as a regulated investment company under the Code (which
    would make the Trust a taxable entity, causing the Trust&#146;s
    income to be taxed at the corporate level in addition to the
    taxation of shareholders who receive dividends from the Trust)
    or as a registered closed-end investment company under the
    Investment Company Act; (2)&#160;the Trust would not be able to
    liquidate portfolio securities in an orderly manner and
    consistent with the Trust&#146;s investment objective and
    policies in order to repurchase shares; or (3)&#160;there is, in
    the Board&#146;s judgment, any (a)&#160;material legal action or
    proceeding instituted or threatened challenging such
    transactions or otherwise materially adversely affecting the
    Trust, (b)&#160;general suspension of or limitation on prices
    for trading securities on the New York Stock Exchange,
    (c)&#160;declaration of a banking moratorium by federal or state
    authorities or any suspension of payment by United States or New
    York banks, (d)&#160;material limitation affecting the Trust or
    the issuers of its portfolio securities by federal or state
    authorities on the extension of credit by lending institutions
    or on the exchange of foreign currency, (e)&#160;commencement of
    war, armed hostilities or other international or national
    calamity directly or indirectly involving the United States, or
    (f)&#160;other event or condition which would have a material
    adverse effect (including any adverse tax effect) on the Trust
    or its shareholders if shares were repurchased. The Board may in
    the future modify these conditions in light of experience.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The repurchase by the Trust of its shares at prices below net
    asset value will result in an increase in the net asset value of
    those shares that remain outstanding. However, there can be no
    assurance that share repurchases or tender offers at or below
    net asset value will result in the Trust&#146;s shares trading
    at a price equal to their net asset value. Nevertheless, the
    fact that the Trust&#146;s shares may be the subject of
    repurchase or tender offers from time to time, or that the Trust
    may be converted to an open-end investment company, may reduce
    any spread between market price and net asset value that might
    otherwise exist.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, a purchase by the Trust of its common shares will
    decrease the Trust&#146;s net assets which would likely have the
    effect of increasing the Trust&#146;s expense ratio. Any
    purchase by the Trust of its common shares at a time when
    Preferred Shares are outstanding will increase the leverage
    applicable to the outstanding common shares then remaining.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Before deciding whether to take any action if the common shares
    trade below net asset value, the Board would likely consider all
    relevant factors, including the extent and duration of the
    discount, the liquidity of the Trust&#146;s portfolio, the
    impact of any action that might be taken on the Trust or its
    shareholders and market considerations. Based on these
    considerations, even if the Trust&#146;s shares should trade at
    a discount, the Board may determine that, in the interest of the
    Trust and its shareholders, no action should be taken.
</DIV>

<A name='Y93113133'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TAX
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is a brief summary of certain
    U.S.&#160;federal income tax considerations affecting the Trust
    and its shareholders. This discussion is based upon current
    provisions of the Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;), the regulations promulgated thereunder and
    judicial and administrative authorities, all of which are
    subject to change or differing interpretations by the courts or
    the Internal Revenue Service (the &#147;IRS&#148;), possibly
    with retroactive effect. No assurance can be given that the IRS
    would not assert, or that a court would not sustain, a position
    different from any of the tax aspects set forth below. This
    discussion assumes that the Trust&#146;s shareholders hold their
    common shares as capital assets for U.S.&#160;federal income tax
    purposes (generally, assets held
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    for investment). No attempt is made to present a detailed
    explanation of all U.S.&#160;federal income tax concerns
    affecting the Trust and its shareholders (including shareholders
    owning a large position in the Trust), and the discussions set
    forth here and in the prospectus do not constitute tax advice.
    Investors are urged to consult their own tax advisors regarding
    the U.S.&#160;federal, state, local and foreign tax consequences
    of investing in the Trust.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of the Trust</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust intends to elect to be, and to qualify for special tax
    treatment afforded to, a regulated investment company under
    Subchapter M of the Code. As long as it so qualifies, in any
    taxable year in which it meets the distribution requirements
    described below, the Trust (but not its shareholders) will not
    be subject to U.S.&#160;federal income tax to the extent that it
    distributes its investment company taxable income and net
    recognized capital gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to qualify to be taxed as a regulated investment
    company, the Trust must, among other things: (i)&#160;derive in
    each taxable year at least 90% of its gross income from the
    following sources, which are referred herein as &#147;Qualifying
    Income&#148;: (a)&#160;dividends, interest (including tax-exempt
    interest), payments with respect to certain securities, loans,
    and gains from the sale or other disposition of stock,
    securities, or foreign currencies, or other income (including
    but not limited to gain from options, futures and forward
    contracts) derived with respect to its business of investing in
    such stock, securities or currencies and (b)&#160;net income
    derived from interests in certain publicly traded partnerships
    that derive less than 90% of their gross income from the items
    described in clause&#160;(a) above (each a &#147;Qualified
    Publicly Traded Partnership&#148;); and (ii)&#160;diversify its
    holdings so that, at the end of each quarter of each taxable
    year (a)&#160;at least 50% of the value of the Trust&#146;s
    total assets is represented by cash and cash items,
    U.S.&#160;government securities, the securities of other
    regulated investment companies and other securities, with such
    other securities limited, in respect of any one issuer, to an
    amount not greater than 5% of the value of the Trust&#146;s
    total assets and not more than 10% of the outstanding voting
    securities of such issuer and (b)&#160;not more than 25% of the
    value of the Trust&#146;s total assets is invested in the
    securities of (I)&#160;any one issuer (other than
    U.S.&#160;government securities and the securities of other
    regulated investment companies), (II)&#160;any two or more
    issuers (other than regulated investment companies) that the
    Trust controls and that are determined to be engaged in the same
    business or similar or related trades or businesses or
    (III)&#160;any one or more Qualified Publicly Traded
    Partnerships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Income from the Trust&#146;s investments in equity interests of
    MLPs that are not Qualified Publicly Traded Partnerships (if
    any) will be Qualifying Income to the extent it is attributable
    to items of income of such MLP that would be Qualifying Income
    if earned directly by the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s investments in partnerships, including in
    Qualified Publicly Traded Partnerships, may result in the Trust
    being subject to state, local or foreign income, franchise or
    withholding tax liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a regulated investment company, the Trust generally is not
    subject to U.S.&#160;federal income tax on income and gains that
    it distributes each taxable year to its shareholders, provided
    that in such taxable year it distributes at least 90% of the sum
    of (i)&#160;its investment company taxable income (which
    includes, among other items, dividends, interest, the excess of
    any net short-term capital gain over net long-term capital loss
    and other taxable income, other than net capital gain (as
    defined below), reduced by deductible expenses) determined
    without regard to the deduction for dividends and distributions
    paid and (ii)&#160;its net tax-exempt interest income (the
    excess of its gross tax-exempt interest income over certain
    disallowed deductions). The Trust intends to distribute annually
    all or substantially all of such income and gain. If the Trust
    retains any investment company taxable income or net capital
    gain (as defined below), it will be subject to U.S.&#160;federal
    income tax on the retained amount at regular corporate tax
    rates. In addition, if the Trust fails to qualify as a regulated
    investment company for any taxable year, it will be subject to
    U.S.&#160;federal income tax on all of its income and gains at
    regular corporate tax rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may retain for investment its net capital gain (which
    consists of the excess of its net long-term capital gain over
    its net short-term capital loss). However, if the Trust retains
    any net capital gain or any investment company taxable income,
    it will be subject to a tax on such amount at regular corporate
    tax rates. If the Trust retains any net capital gain, it expects
    to designate the retained amount as undistributed capital gains
    in a notice to its shareholders, each of whom, if subject to
    U.S.&#160;federal income tax on long-term capital gains,
    (i)&#160;will be required to include in income for
    U.S.&#160;federal income tax purposes its share of such
    undistributed net capital gain, (ii)&#160;will be entitled to
    credit its proportionate share of the tax paid by the Trust
    against its U.S.&#160;federal income tax liability, if
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    any, and to claim refunds to the extent that the credit exceeds
    such liability and (iii)&#160;will increase its tax basis in its
    common shares by the excess of the amount described in
    clause&#160;(i) over the amount described in clause (ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Amounts not distributed on a timely basis in accordance with a
    calendar year distribution requirement are subject to a
    nondeductible 4% U.S.&#160;federal excise tax at the Trust
    level. To avoid the excise tax, the Trust must distribute during
    each calendar year an amount at least equal to the sum of
    (i)&#160;98% of its ordinary income (not taking into account any
    capital gains or losses) for the calendar year and
    (ii)&#160;98.2% of its capital gains in excess of its capital
    losses (adjusted for certain ordinary losses) for a one-year
    period generally ending on October 31 of the calendar year. In
    addition, the minimum amounts that must be distributed in any
    year to avoid the excise tax will be increased or decreased to
    reflect any under-distribution or over-distribution, as the case
    may be, from the previous year. While the Trust intends to
    distribute any income and capital gain in the manner necessary
    to minimize imposition of the 4% federal excise tax, there can
    be no assurance that sufficient amounts of the Trust&#146;s
    taxable income and capital gains will be distributed to avoid
    entirely the imposition of the tax. In that event, the Trust
    will be liable for the tax only on the amount by which it does
    not meet the foregoing distribution requirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dividends and distributions will be treated as paid during the
    calendar year if they are paid during the calendar year or
    declared by the Trust in October, November or December of the
    year, payable to shareholders of record on a date during such a
    month and paid by the Trust during January of the following
    year. Any such dividend or distribution paid during January of
    the following year will be deemed to be received by the
    Trust&#146;s shareholders on December 31 of the year the
    dividend or distribution was declared, rather than when the
    dividend or distribution is actually received.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Trust were unable to satisfy the 90% distribution
    requirement or otherwise were to fail to qualify as a regulated
    investment company in any year, it would be taxed on all of its
    taxable income in the same manner as an ordinary corporation and
    distributions to the Trust&#146;s shareholders would not be
    deductible by the Trust in computing its taxable income. In such
    case, distributions generally would be eligible (i)&#160;through
    2012, for treatment as qualified dividend income in the case of
    individual shareholders and (ii)&#160;for the dividends received
    deduction in the case of corporate shareholders. To qualify
    again to be taxed as a regulated investment company in a
    subsequent year, the Trust would be required to distribute to
    its shareholders its accumulated earnings and profits
    attributable to non-regulated investment company years reduced
    by an interest charge on 50% of such earnings and profits
    payable by the Trust as an additional tax. In addition, if the
    Trust failed to qualify as a regulated investment company for a
    period greater than two taxable years, then, in order to qualify
    as a regulated investment company in a subsequent year, the
    Trust would be required to elect to recognize and pay tax on any
    net built-in gain (the excess of aggregate gain, including items
    of income, over aggregate loss that would have been realized if
    the Trust had been liquidated) or, alternatively, be subject to
    taxation on such built-in gain recognized for a period of ten
    years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Gain or loss on the sale of securities by the Trust will
    generally be long-term capital gain or loss if the securities
    have been held by the Trust for more than one year. Gain or loss
    on the sale of securities held for one year or less will be
    short-term capital gain or loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of the Trust&#146;s investment practices are subject to
    special and complex U.S.&#160;federal income tax provisions that
    may, among other things, (i)&#160;disallow, suspend or otherwise
    limit the allowance of certain losses or deductions (including
    the dividends received deduction), (ii)&#160;convert lower taxed
    long-term capital gains and qualified dividend income into
    higher taxed short-term capital gains or ordinary income,
    (iii)&#160;convert ordinary loss or a deduction into capital
    loss (the deductibility of which is more limited),
    (iv)&#160;cause the Trust to recognize income or gain without a
    corresponding receipt of cash (e.g., under the original issue
    discount rules), (v)&#160;adversely affect the time as to when a
    purchase or sale of stock or securities is deemed to occur,
    (vi)&#160;adversely alter the characterization of certain
    complex financial transactions and (vii)&#160;produce income
    that will not qualify as good income for purposes of the 90%
    annual gross income requirement described above. The Trust will
    monitor its transactions and may make certain tax elections and
    may be required to borrow money or dispose of securities to
    mitigate the effect of these rules and prevent disqualification
    of the Trust as a regulated investment company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The MLPs in which the Trust intends to invest are expected to be
    treated as partnerships for U.S.&#160;federal income tax
    purposes. The cash distributions received by the Trust from an
    MLP may not correspond to the amount of income allocated to the
    Trust by the MLP in any given taxable year. If the amount of
    income allocated by an MLP to the Trust exceeds the amount of
    cash received by the Trust from such MLP, the Trust may have
    difficulty making
</DIV>
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    <BR>
    A-46
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    distributions to its shareholders in the amounts necessary to
    satisfy the requirements for maintaining its status as a
    regulated investment company or avoiding U.S.&#160;federal
    income or excise taxes. Accordingly, the Trust may have to
    dispose of securities under disadvantageous circumstances in
    order to generate sufficient cash to satisfy the distribution
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust expects that the income derived by the Trust from the
    MLPs in which it invests will be Qualifying Income. If, however,
    an MLP in which the Trust invests is not a Qualified Publicly
    Traded Partnership, the income derived by the Trust from such
    investment may not be Qualifying Income and, therefore, could
    adversely affect the Trust&#146;s status as a regulated
    investment company. The Trust intends to monitor its investments
    in MLPs to prevent to disqualification of the Trust as a
    regulated investment company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Trust invests in foreign securities, its income from such
    securities may be subject to
    <FONT style="white-space: nowrap">non-U.S.&#160;Taxes.</FONT>
    The Trust will not be eligible to elect to &#147;pass
    through&#148; to shareholders of the Trust the ability to use
    the foreign tax deduction or foreign tax credit for foreign
    taxes paid with respect to qualifying taxes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Shareholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions paid by the Trust from its investment company
    taxable income (as defined above) (together referred to
    hereinafter as &#147;ordinary income dividends&#148;), whether
    paid in cash or reinvested in Trust shares, are generally
    taxable to you as ordinary income to the extent of the
    Trust&#146;s earnings and profits. Certain properly designated
    distributions may, however, qualify (provided that holding
    period and other requirements are met by both the Trust and the
    shareholder) (i)&#160;for the dividends received deduction in
    the case of corporate shareholders to the extent that the
    Trust&#146;s income consists of dividend income from
    U.S.&#160;corporations or (ii)&#160;in the case of individual
    shareholders, for taxable years beginning on or before
    December&#160;31, 2012, as qualified dividend income eligible to
    be taxed at a reduced maximum rate to the extent that the Trust
    receives qualified dividend income. Qualified dividend income
    is, in general, dividend income from taxable domestic
    corporations and certain foreign corporations. There can be no
    assurance as to what portion of the Trust&#146;s distributions
    will qualify for the dividends received deduction or for
    treatment as qualified dividend income or as to whether the
    favorable tax treatment for qualified dividend income will be
    extended by Congress for taxable years beginning after 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Distributions made from net capital gain, which is the excess of
    net long-term capital gains over net short-term capital losses
    (&#147;capital gain dividends&#148;), including capital gain
    dividends credited to a shareholder but retained by the Trust,
    are taxable to shareholders as long-term capital gains if they
    have been properly reported by the Trust, regardless of the
    length of time the shareholder has owned common shares of the
    Trust. Net long-term capital gain of individuals is generally
    taxed at a reduced maximum rate. For corporate taxpayers, net
    long-term capital gain is taxed at ordinary income rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If, for any calendar year, the Trust&#146;s total distributions
    exceed both current earnings and profits and accumulated
    earnings and profits, the excess will generally be treated as a
    tax-free return of capital up to the amount of a
    shareholder&#146;s tax basis in the common shares, reducing that
    basis accordingly. Such distributions exceeding the
    shareholder&#146;s basis will be treated as gain from the sale
    or exchange of the shares. When you sell your shares in the
    Trust, the amount, if any, by which your sales price exceeds
    your basis in the Trust&#146;s common shares is gain subject to
    tax. Because a return of capital reduces your basis in the
    shares, it will increase the amount of your gain or decrease the
    amount of your loss when you sell the shares, all other things
    being equal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, after the close of its taxable year, the Trust will
    provide its shareholders with a written notice designating the
    amount of any ordinary income dividends or capital gain
    dividends and other distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The sale or other disposition of common shares of the Trust will
    generally result in capital gain or loss to shareholders
    measured by the difference between the sale price and the
    shareholder&#146;s tax basis in its shares. Generally, a
    shareholder&#146;s gain or loss will be long-term gain or loss
    if the shares have been held for more than one year. Any loss
    upon the sale or exchange of Trust common shares held for six
    months or less will be treated as long-term capital loss to the
    extent of any capital gain dividends received (including amounts
    credited as an undistributed capital gain) by the shareholder.
    Any loss a shareholder realizes on a sale or exchange of common
    shares of the Trust will be disallowed if the shareholder
    acquires other common shares of the Trust (whether through the
    automatic reinvestment of dividends or otherwise) within a
    <FONT style="white-space: nowrap">61-day</FONT>
    period beginning 30&#160;days before and ending 30&#160;days
    after
</DIV>
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    <BR>
    A-47
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the shareholder&#146;s sale or exchange of the common shares. In
    such case, the basis of the common shares acquired will be
    adjusted to reflect the disallowed loss. Present law taxes both
    long-term and short-term capital gains of corporations at the
    rates applicable to ordinary income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shareholders may be entitled to offset their capital gain
    distributions with capital losses. There are several statutory
    provisions affecting when capital losses may be offset against
    capital gain, and limiting the use of losses from certain
    investments and activities. Accordingly, shareholders with
    capital losses are urged to consult their tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An investor should be aware that if Trust common shares are
    purchased shortly before the record date for any taxable
    distribution (including a capital gain dividend), the purchase
    price likely will reflect the value of the distribution and the
    investor then would receive a taxable distribution likely to
    reduce the trading value of such Trust common shares, in effect
    resulting in a taxable return of some of the purchase price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dividends and other taxable distributions are taxable to you
    even though they are reinvested in additional shares of the
    Trust. Dividends and other distributions paid by the Trust are
    generally treated for U.S.&#160;federal income tax purposes as
    received by you at the time the dividend or distribution is
    made. If, however, the Trust pays you a dividend in January that
    was declared in the previous October, November or December and
    you were the shareholder of record on a specified date in one of
    such months, then such dividend will be treated for
    U.S.&#160;federal income tax purposes as being paid by the Trust
    and received by you on December 31 of the year in which the
    dividend was declared. In addition, certain other distributions
    made after the close of the Trust&#146;s taxable year may be
    &#147;spilled back&#148; and treated as paid by the Trust
    (except for purposes of the 4% nondeductible excise tax) during
    such taxable year. In such case, you will be treated as having
    received such dividends in the taxable year in which the
    distributions were actually made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A shareholder that is a nonresident alien individual or a
    foreign corporation (a &#147;foreign investor&#148;) generally
    will be subject to U.S.&#160;federal withholding tax at a rate
    of 30% (or possibly a lower rate provided by an applicable tax
    treaty) on ordinary income dividends (except as discussed
    below). Actual or deemed distributions of the Trust&#146;s net
    capital gain to a foreign investor, and gains recognized by a
    foreign investor upon the sale of the Trust&#146;s common stock,
    will generally not be subject to U.S.&#160;federal withholding
    or income tax. Different tax consequences may result if the
    foreign investor is engaged in a trade or business in the United
    States or, in the case of an individual, is present in the
    United States for 183&#160;days or more during a taxable year
    and certain other conditions are met. Foreign investors should
    consult their tax advisors regarding the tax consequences of
    investing in the Trust&#146;s common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, withholding at a rate of 30% will be required after
    December&#160;31, 2013 on dividends in respect of, and after
    December&#160;31, 2014, on gross proceeds from the sale of, our
    common stock held by or through certain foreign financial
    institutions (including investment funds), unless such
    institution enters into an agreement with the Secretary of the
    Treasury to report, on an annual basis, information with respect
    to shares in, and accounts maintained by, the institution to the
    extent such shares or accounts are held by certain United States
    persons or by certain
    <FONT style="white-space: nowrap">non-U.S.&#160;entities</FONT>
    that are wholly or partially owned by United States persons.
    Accordingly, the entity or entities through which our common
    stock is held will affect the determination of whether such
    withholding is required. Similarly, withholding at a rate of 30%
    will be required after December&#160;31, 2013 on dividends in
    respect of, and after December&#160;31, 2014 on the gross
    proceeds from the sale of, our common stock held by an investor
    that is a non-financial
    <FONT style="white-space: nowrap">non-U.S.&#160;entity,</FONT>
    unless such entity either (i)&#160;certifies to us that such
    entity does not have any &#147;substantial United States
    owners&#148; or (ii)&#160;provides certain information regarding
    the entity&#146;s &#147;substantial United&#160;States
    owners,&#148; which we will in turn provide to the Secretary of
    the Treasury. Foreign investors are encouraged to consult with
    their tax advisors regarding the possible implications of the
    legislation on their investment in our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For taxable years of the Trust beginning before January&#160;1,
    2012, properly designated dividends are generally exempt from
    U.S.&#160;federal withholding tax where they (i)&#160;are paid
    in respect of the Trust&#146;s &#147;qualified net interest
    income&#148; (generally, the Trust&#146;s
    <FONT style="white-space: nowrap">U.S.-source</FONT>
    interest income, other than certain contingent interest and
    interest from obligations of a corporation or partnership in
    which the Trust is at least a 10% shareholder, reduced by
    expenses that are allocable to such income) or (ii)&#160;are
    paid in respect of the Trust&#146;s &#147;qualified short-term
    capital gains&#148; (generally, the excess of the Trust&#146;s
    net short-term capital gain over the Trust&#146;s long-term
    capital loss for such taxable year).
</DIV>
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    <BR>
    A-48
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Depending on its circumstances, however, the Trust may designate
    all, some or none of its potentially eligible dividends as such
    qualified net interest income or as qualified short-term capital
    gains,
    <FONT style="white-space: nowrap">and/or</FONT> treat
    such dividends, in whole or in part, as ineligible for this
    exemption from withholding. In order to qualify for this
    exemption from withholding, a foreign investor will need to
    comply with applicable certification requirements relating to
    its
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    (including, in general, furnishing an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or substitute Form). In the case of common shares held through
    an intermediary, the intermediary may withhold even if the Trust
    designates the payment as qualified net interest income or
    qualified short-term capital gain. Foreign investors should
    contact their intermediaries with respect to the application of
    these rules to their accounts. There can be no assurance as to
    what portion of the Trust&#146;s distributions will qualify for
    favorable treatment as qualified net interest income or
    qualified short-term capital gains.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust is required in certain circumstances to withhold, for
    U.S.&#160;federal backup withholding purposes, on taxable
    dividends or distributions and certain other payments paid to
    non-exempt holders of the Trust&#146;s common shares who do not
    furnish the Trust with their correct taxpayer identification
    number (in the case of individuals, their social security
    number) and certain certifications, or who are otherwise subject
    to backup withholding. Backup withholding is not an additional
    tax. Any amounts withheld from payments made to a shareholder
    may be refunded or credited against such shareholder&#146;s
    U.S.&#160;federal income tax liability, if any, provided that
    the required information is furnished to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The foregoing is a general summary of the provisions of the
    Code and the Treasury regulations in effect as they directly
    govern the taxation of the Trust and its shareholders. These
    provisions are subject to change by legislative, judicial or
    administrative action, and any such change may be retroactive.
    Ordinary income and capital gain dividends may also be subject
    to state, local and foreign taxes. Shareholders are urged to
    consult their tax advisors regarding U.S.&#160;federal, state,
    local and foreign tax consequences of investing in the Trust.</B>
</DIV>
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    <BR>
    A-49
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<A name='Y93113134'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEPENDENT
    AUDITORS&#146; REPORT<BR>
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
    FIRM</FONT></B>
</DIV>

</A>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the Shareholder and Board of Trustees of
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
     BlackRock Utility and Infrastructure Trust:
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have audited the accompanying statement of assets and
    liabilities of BlackRock Utility and Infrastructure Trust (the
    &#147;Trust&#148;) as of October&#160;12, 2011, and the related
    statements of operations and changes in net assets for the
    period from August&#160;25, 2011 (date of inception) to
    October&#160;12, 2011. These financial statements are the
    responsibility of the Trust&#146;s management. Our
    responsibility is to express an opinion on these financial
    statements based on our audit.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. The Trust is not required to
    have, nor were we engaged to perform, an audit of its internal
    control over financial reporting. Our audit included
    consideration of internal control over financial reporting as a
    basis for designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the Trust&#146;s internal control over
    financial reporting. Accordingly, we express no such opinion. An
    audit also includes examining, on a test basis, evidence
    supporting the amounts and disclosures in the financial
    statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall financial statement presentation. We believe that
    our audit provides a reasonable basis for our opinion.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of BlackRock Utility and Infrastructure Trust as of
    October&#160;12, 2011, and the results of its operations and
    changes in its net assets for the period from August&#160;25,
    2011 (date of inception) to October&#160;12, 2011, in conformity
    with accounting principles generally accepted in the United
    States of America.
</DIV>



<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Deloitte&#160;&#038;
    Touche <FONT style="font-variant: SMALL-CAPS">LLP</FONT></DIV>
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Philadelphia, Pennsylvania
</DIV>





<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
     October&#160;24, 2011
</DIV>

  <!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    F-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113135'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">BlackRock
    Utility and Infrastructure Trust<BR>
    </A>Statement of Assets and Liabilities<BR>
    October&#160;12, 2011</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Payable for organization costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net Assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net Assets Consist of:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Paid-in capital (Note&#160;1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accumulated net investment loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Assets, October&#160;12, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net asset value per common share:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Equivalent to 6,964&#160;shares of common stock issued and
    outstanding, par $0.001, unlimited shares authorized
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    F-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">BlackRock
    Utility and Infrastructure Trust<BR>
    Statement of Operations<BR>
    For the period August&#160;25, 2011 (date of inception) to
    October&#160;12, 2011</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,op -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Investment Income:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Expenses:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Organization expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net investment loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (33,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">BlackRock
    Utility and Infrastructure Trust<BR>
    Statement of Changes in Net Assets<BR>
    For the period August&#160;25, 2011 (date of inception) to
    October&#160;12, 2011</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>INCREASE (DECREASE) IN NET ASSETS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Operations:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net investment loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (33,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net decrease in net assets resulting from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Capital Share Transactions:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net proceeds from the issuance of common shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net Assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total increase in net assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    End of period (including accumulated net investment loss of
    $33,000)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    See Notes to Financial Statements.
</DIV>
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    <BR>
    F-4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113141'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Organization
    and Significant Accounting Policies:</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock Utility and Infrastructure Trust (the
    &#147;Trust&#148;) was organized as a Delaware statutory trust
    on August&#160;25, 2011, and is registered as a non-diversified,
    closed-end management investment company under the Investment
    Company Act of 1940, as amended. The Trust had no operations
    other than a sale to BlackRock HoldCo 2, Inc. of
    6,964&#160;shares of common stock for $133,012 ($19.10 per
    share).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s financial statements are prepared in conformity
    with accounting principles generally accepted in the United
    States of America (&#147;US GAAP&#148;), which may require
    management to make estimates and assumptions that affect the
    reported amounts and disclosure in the financial statements.
    Actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Valuation:</B>&#160;&#160;US GAAP defines fair value as the
    price the Trust would receive to sell an asset or pay to
    transfer a liability in an orderly transaction between market
    participants at the measurement date. The Trust fair values its
    financial instruments at market value using independent dealers
    or pricing services under policies approved by the Board of
    Trustees (the &#147;Board&#148;). Equity investments traded on a
    recognized securities exchange or the NASDAQ Global Market
    System (&#147;NASDAQ&#148;) are valued at the last reported sale
    price that day or the NASDAQ official closing price, if
    applicable. For equity investments traded on more than one
    exchange, the last reported sale price on the exchange where the
    stock is primarily traded is used. Equity investments traded on
    a recognized exchange for which there were no sales on that day
    are valued at the last available bid (long positions) or ask
    (short positions) price. If no bid or ask price is available,
    the prior day&#146;s price will be used, unless it is determined
    that such prior day&#146;s price no longer reflects the fair
    value of the security. Investments in open-end registered
    investment companies are valued at net asset value each business
    day. Short-term securities with remaining maturities of
    60&#160;days or less may be valued at amortized cost, which
    approximates fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Fund values its bond investments on the basis of last
    available bid prices or current market quotations provided by
    dealers or pricing services. Floating rate loan interests are
    valued at the mean of the bid prices from one or more brokers or
    dealers as obtained from a pricing service. In determining the
    value of a particular investment, pricing services may use
    certain information with respect to transactions in such
    investments, quotations from dealers, pricing matrixes, market
    transactions in comparable investments, various relationships
    observed in the market between investments and calculated yield
    measures. Asset-backed and mortgage-backed securities are valued
    by independent pricing services using models that consider
    estimated cash flows of each tranche of the security, establish
    a benchmark yield and develop an estimated tranche specific
    spread to the benchmark yield based on the unique attributes of
    the tranche.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Securities and other assets and liabilities denominated in
    foreign currencies are translated into US dollars using exchange
    rates determined as of the close of business on the New York
    Stock Exchange (&#147;NYSE&#148;). Foreign currency exchange
    contracts are valued at the mean between the bid and ask prices
    and are determined as of the close of business on the NYSE.
    Interpolated values are derived when the settlement date of the
    contract is an interim date for which quotations are not
    available.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Exchange-traded options are valued at the mean between the last
    bid and ask prices at the close of the options market in which
    the options trade. An exchange-traded option for which there is
    no mean price is valued at the last bid (long positions) or ask
    (short positions) price. If no bid or ask price is available,
    the prior day&#146;s price will be used, unless it is determined
    that the prior day&#146;s price no longer reflects the fair
    value of the option.
    <FONT style="white-space: nowrap">Over-the-counter</FONT>
    (&#147;OTC&#148;) options are valued by an independent pricing
    service using a mathematical model which incorporates a number
    of market data factors, such as the trades and prices of the
    underlying instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event that application of these methods of valuation
    results in a price for an investment which is deemed not to be
    representative of the market value of such investment or if a
    price is not available, the investment will be valued in
    accordance with a policy approved by the Board as reflecting
    fair value (&#147;Fair Value Assets&#148;). When determining the
    price for Fair Value Assets, the investment advisor
    <FONT style="white-space: nowrap">and/or</FONT> the
    <FONT style="white-space: nowrap">sub-advisor</FONT>
    seeks to determine the price that the Trust might reasonably
    expect to receive from the current sale of that asset in an
    arm&#146;s-length transaction. Fair value determinations shall
    be based upon all available factors that the investment advisor
    <FONT style="white-space: nowrap">and/or</FONT>
    <FONT style="white-space: nowrap">sub-advisor</FONT>
    deems relevant. The pricing of all Fair Value Assets is
    subsequently reported to the Board or a committee thereof.
</DIV>
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    <BR>
    F-5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, trading in foreign instruments is substantially
    completed each day at various times prior to the close of
    business on the NYSE. Occasionally, events affecting the values
    of such instruments may occur between the foreign market close
    and the close of business on the NYSE that may not be reflected
    in the computation of the Trust&#146;s net assets. If events
    (for example, a company announcement, market volatility or a
    natural disaster) occur during such periods that are expected to
    materially affect the value of such instruments, those
    instruments may be Fair Value Assets and be valued at their fair
    value, as determined in good faith by the investment advisor
    using a pricing service
    <FONT style="white-space: nowrap">and/or</FONT>
    policies approved by the Board. Each business day, the Trust
    uses a pricing service to assist with the valuation of certain
    foreign exchange-traded equity securities and foreign
    exchange-traded and OTC options (the &#147;Systematic Fair Value
    Price&#148;). Using current market factors, the Systematic Fair
    Value Price is designed to value such foreign securities and
    foreign options at fair value as of the close of business on the
    NYSE, which follows the close of the local markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Income Taxes:</B>&#160;&#160;It is the Trust&#146;s policy to
    comply with the requirements of the Internal Revenue Code of
    1986, as amended, applicable to regulated investment companies
    and to distribute substantially all of its taxable income to its
    shareholders. Therefore, no federal income tax provision is
    required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Recent Accounting Standard:</B>&#160;&#160;In May 2011, the
    Financial Accounting Standards Board issued amended guidance to
    improve disclosure about fair value measurements which will
    require the following disclosures for fair value measurements
    categorized as Level&#160;3: quantitative information about the
    unobservable inputs and assumptions used in the fair value
    measurement, a description of the valuation policies and
    procedures and a narrative description of the sensitivity of the
    fair value measurement to changes in unobservable inputs and the
    interrelationships between those unobservable inputs. In
    addition, the amounts and reasons for all transfers in and out
    of Level&#160;1 and Level&#160;2 will be required to be
    disclosed. The amended guidance is effective for financial
    statements for fiscal years beginning after December&#160;15,
    2011, and interim periods within those fiscal years. Management
    is evaluating the impact of this guidance on the Trust&#146;s
    financial statements and disclosures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Advisory Arrangements:</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The PNC Financial Services Group, Inc. (&#147;PNC&#148;) and
    Barclays Bank PLC (&#147;Barclays&#148;) are the largest
    stockholders of BlackRock, Inc. (&#147;BlackRock&#148;). Due to
    the ownership structure, PNC is an affiliate for 1940 Act
    purposes, but Barclays is not.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust entered into an Investment Advisory Agreement with
    BlackRock Advisors, LLC (the &#147;Manager&#148;), the
    Trust&#146;s investment advisor, an indirect, wholly owned
    subsidiary of BlackRock, to provide investment advisory and
    administration services. The Manager is responsible for the
    management of the Trust&#146;s portfolio and provides the
    necessary personnel, facilities, equipment and certain other
    services necessary to the operations of the Trust. For such
    services, the Trust pays the Manager an annual fee, payable
    monthly, in a maximum amount equal to 1.00% of the average daily
    value of the net assets of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Manager entered into a
    <FONT style="white-space: nowrap">sub-advisory</FONT>
    agreement with BlackRock Financial Management, Inc.
    (&#147;BFM&#148;) and BlackRock Investment Management, LLC
    (&#147;BIM&#148;), affiliates of the Manager. The Manager pays
    BFM and BIM for services they provide, a monthly fee that is a
    percentage of the investment advisory fees paid by the Trust to
    the Manager.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Organization
    Expenses and Offering Costs:</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Organization expenses of $33,000 incurred by the Trust have been
    expensed. Offering costs, estimated to be approximately
    $1,790,650, limited to $.04 per share, will be charged to
    paid-in capital at the time common shares are sold.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events:</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Management has evaluated the impact of all subsequent events on
    the Trust through the date the financial statements were issued
    and has determined that there were no subsequent events
    requiring adjustment or additional disclosure in the financial
    statements.
</DIV>
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    <BR>
    F-6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113136'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A<BR>
    Ratings of Investments</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Standard&#160;&#038; Poor&#146;s Corporation
    </I></B><I>&#151;&#160;</I>A brief description of the applicable
    Standard&#160;&#038; Poor&#146;s Corporation
    (&#147;S&#038;P&#148;) rating symbols and their meanings (as
    published by S&#038;P) follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Standard&#160;&#038; Poor&#146;s issue credit rating is a
    forward-looking opinion about the creditworthiness of an obligor
    with respect to a specific financial obligation, a specific
    class of financial obligations, or a specific financial program
    (including ratings on medium-term note programs and commercial
    paper programs). It takes into consideration the
    creditworthiness of guarantors, insurers, or other forms of
    credit enhancement on the obligation and takes into account the
    currency in which the obligation is denominated. The opinion
    reflects S&#038;P&#146;s view of the obligor&#146;s capacity and
    willingness to meet its financial commitments as they come due,
    and may assess terms, such as collateral security and
    subordination, which could affect ultimate payment in the event
    of default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Issue credit ratings can be either long-term or short-term.
    Short-term ratings are generally assigned to those obligations
    considered short-term in the relevant market. In the U.S., for
    example, that means obligations with an original maturity of no
    more than 365&#160;days&#160;&#151; including commercial paper.
    Short-term ratings are also used to indicate the
    creditworthiness of an obligor with respect to put features on
    long-term obligations. The result is a dual rating, in which the
    short-term rating addresses the put feature, in addition to the
    usual long-term rating. Medium-term notes are assigned long-term
    ratings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Issue Credit Ratings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Issue credit ratings are based, in varying degrees, on
    S&#038;P&#146;s analysis of the following considerations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Likelihood of payment&#160;&#151; capacity and willingness of
    the obligor to meet its financial commitment on an obligation in
    accordance with the terms of the obligation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Nature of and provisions of the obligation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Protection afforded by, and relative position of, the obligation
    in the event of bankruptcy, reorganization, or other arrangement
    under the laws of bankruptcy and other laws affecting
    creditors&#146; rights.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Issue ratings are an assessment of default risk, but may
    incorporate an assessment of relative seniority or ultimate
    recovery in the event of default. Junior obligations are
    typically rated lower than senior obligations, to reflect the
    lower priority in bankruptcy, as noted above. (Such
    differentiation may apply when an entity has both senior and
    subordinated obligations, secured and unsecured obligations, or
    operating company and holding company obligations.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    AAA&#160;An obligation rated &#145;AAA&#146; has the highest
    rating assigned by S&#038;P. The obligor&#146;s capacity to meet
    its financial commitment on the obligation is extremely strong.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    AA&#160;An obligation rated &#145;AA&#146; differs from the
    highest-rated obligations only to a small degree. The
    obligor&#146;s capacity to meet its financial commitment on the
    obligation is very strong.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A&#160;An obligation rated &#145;A&#146; is somewhat more
    susceptible to the adverse effects of changes in circumstances
    and economic conditions than obligations in higher-rated
    categories. However, the obligor&#146;s capacity to meet its
    financial commitment on the obligation is still strong.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BBB&#160;An obligation rated &#145;BBB&#146; exhibits adequate
    protection parameters. However, adverse economic conditions or
    changing circumstances are more likely to lead to a weakened
    capacity of the obligor to meet its financial commitment on the
    obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Obligations rated &#145;BB&#146;, &#145;B&#146;,
    &#145;CCC&#146;, &#145;CC&#146;, and &#145;C&#146; are regarded
    as having significant speculative characteristics.
    &#145;BB&#146; indicates the least degree of speculation and
    &#145;C&#146; the highest. While such obligations will likely
    have some quality and protective characteristics, these may be
    outweighed by large uncertainties or major exposures to adverse
    conditions.
</DIV>
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    <BR>
    A-1
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<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BB&#160;An obligation rated &#145;BB&#146; is less vulnerable to
    nonpayment than other speculative issues. However, it faces
    major ongoing uncertainties or exposure to adverse business,
    financial, or economic conditions which could lead to the
    obligor&#146;s inadequate capacity to meet its financial
    commitment on the obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B&#160;An obligation rated &#145;B&#146; is more vulnerable to
    nonpayment than obligations rated &#145;BB&#146;, but the
    obligor currently has the capacity to meet its financial
    commitment on the obligation. Adverse business, financial, or
    economic conditions will likely impair the obligor&#146;s
    capacity or willingness to meet its financial commitment on the
    obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    CCC&#160;An obligation rated &#145;CCC&#146; is currently
    vulnerable to nonpayment, and is dependent upon favorable
    business, financial, and economic conditions for the obligor to
    meet its financial commitment on the obligation. In the event of
    adverse business, financial, or economic conditions, the obligor
    is not likely to have the capacity to meet its financial
    commitment on the obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    CC&#160;An obligation rated &#145;CC&#146; is currently highly
    vulnerable to nonpayment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    C&#160;A &#145;C&#146; rating is assigned to obligations that
    are currently highly vulnerable to nonpayment, obligations that
    have payment arrearages allowed by the terms of the documents,
    or obligations of an issuer that is the subject of a bankruptcy
    petition or similar action which have not experienced a payment
    default. Among others, the &#145;C&#146; rating may be assigned
    to subordinated debt, preferred stock or other obligations on
    which cash payments have been suspended in accordance with the
    instrument&#146;s terms or when preferred stock is the subject
    of a distressed exchange offer, whereby some or all of the issue
    is either repurchased for an amount of cash or replaced by other
    instruments having a total value that is less than par.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    D&#160;An obligation rated &#145;D&#146; is in payment default.
    The &#145;D&#146; rating category is used when payments on an
    obligation, including a regulatory capital instrument, are not
    made on the date due even if the applicable grace period has not
    expired, unless Standard&#160;&#038; Poor&#146;s believes that
    such payments will be made during such grace period. The
    &#145;D&#146; rating also will be used upon the filing of a
    bankruptcy petition or the taking of similar action if payments
    on an obligation are jeopardized. An obligation&#146;s rating is
    lowered to &#145;D&#146; upon completion of a distressed
    exchange offer, whereby some or all of the issue is either
    repurchased for an amount of cash or replaced by other
    instruments having a total value that is less than par.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    NR&#160;This indicates that no rating has been requested, that
    there is insufficient information on which to base a rating, or
    that S&#038;P does not rate a particular obligation as a matter
    of policy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The ratings from &#145;AA&#146; to &#145;CCC&#146; may be
    modified by the addition of a plus (+) or minus (-) sign to show
    relative standing within the major rating categories.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Short-Term
    Issue Credit Ratings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">A-1&#160;A</FONT>
    short-term obligation rated &#145;A-1&#146; is rated in the
    highest category by S&#038;P. The obligor&#146;s capacity to
    meet its financial commitment on the obligation is strong.
    Within this category, certain obligations are designated with a
    plus sign (+). This indicates that the obligor&#146;s capacity
    to meet its financial commitment on these obligations is
    extremely strong.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">A-2&#160;A</FONT>
    short-term obligation rated &#145;A-2&#146; is somewhat more
    susceptible to the adverse effects of changes in circumstances
    and economic conditions than obligations in higher rating
    categories. However, the obligor&#146;s capacity to meet its
    financial commitment on the obligation is satisfactory.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">A-3&#160;A</FONT>
    short-term obligation rated &#145;A-3&#146; exhibits adequate
    protection parameters. However, adverse economic conditions or
    changing circumstances are more likely to lead to a weakened
    capacity of the obligor to meet its financial commitment on the
    obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B&#160;A short-term obligation rated &#145;B&#146; is regarded
    as having significant speculative characteristics. Ratings of
    &#145;B-1&#146;, &#145;B-2&#146;, and &#145;B-3&#146; may be
    assigned to indicate finer distinctions within the &#145;B&#146;
    category. The obligor currently has the capacity to meet its
    financial commitment on the obligation; however, it faces major
    ongoing uncertainties which could lead to the obligor&#146;s
    inadequate capacity to meet its financial commitment on the
    obligation.
</DIV>
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    <BR>
    A-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B-1&#160;A short-term obligation rated &#145;B-1&#146; is
    regarded as having significant speculative characteristics, but
    the obligor has a relatively stronger capacity to meet its
    financial commitments over the short-term compared to other
    speculative-grade obligors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B-2&#160;A short-term obligation rated &#145;B-2&#146; is
    regarded as having significant speculative characteristics, and
    the obligor has an average speculative-grade capacity to meet
    its financial commitments over the short-term compared to other
    speculative-grade obligors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B-3&#160;A short-term obligation rated &#145;B-3&#146; is
    regarded as having significant speculative characteristics, and
    the obligor has a relatively weaker capacity to meet its
    financial commitments over the short-term compared to other
    speculative-grade obligors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    C&#160;A short-term obligation rated &#145;C&#146; is currently
    vulnerable to nonpayment and is dependent upon favorable
    business, financial, and economic conditions for the obligor to
    meet its financial commitment on the obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    D&#160;A short-term obligation rated &#145;D&#146; is in payment
    default. The &#145;D&#146; rating category is used when payments
    on an obligation, including a regulatory capital instrument, are
    not made on the date due even if the applicable grace period has
    not expired, unless S&#038;P believes that such payments will be
    made during such grace period. The &#145;D&#146; rating also
    will be used upon the filing of a bankruptcy petition or the
    taking of a similar action if payments on an obligation are
    jeopardized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Active
    Qualifiers (Currently applied
    <FONT style="white-space: nowrap">and/or</FONT>
    outstanding)</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    i&#160;This subscript is used for issues in which the credit
    factors, terms, or both, that determine the likelihood of
    receipt of payment of interest are different from the credit
    factors, terms or both that determine the likelihood of receipt
    of principal on the obligation. The &#145;i&#146; subscript
    indicates that the rating addresses the interest portion of the
    obligation only. The &#145;i&#146; subscript will always be used
    in conjunction with the &#145;p&#146; subscript, which addresses
    likelihood of receipt of principal. For example, a rated
    obligation could be assigned ratings of &#147;AAAp NRi&#148;
    indicating that the principal portion is rated &#147;AAA&#148;
    and the interest portion of the obligation is not rated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    L&#160;Ratings qualified with &#145;L&#146; apply only to
    amounts invested up to federal deposit insurance limits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    p&#160;This subscript is used for issues in which the credit
    factors, the terms, or both, that determine the likelihood of
    receipt of payment of principal are different from the credit
    factors, terms or both that determine the likelihood of receipt
    of interest on the obligation. The &#145;p&#146; subscript
    indicates that the rating addresses the principal portion of the
    obligation only. The &#145;p&#146; subscript will always be used
    in conjunction with the &#145;i&#146; subscript, which addresses
    likelihood of receipt of interest. For example, a rated
    obligation could be assigned ratings of &#147;AAAp NRi&#148;
    indicating that the principal portion is rated &#147;AAA&#148;
    and the interest portion of the obligation is not rated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    pi&#160;Ratings with a &#145;pi&#146; subscript are based on an
    analysis of an issuer&#146;s published financial information, as
    well as additional information in the public domain. They do
    not, however, reflect in-depth meetings with an issuer&#146;s
    management and therefore may be based on less comprehensive
    information than ratings without a &#145;pi&#146; subscript.
    Ratings with a &#145;pi&#146; subscript are reviewed annually
    based on a new year&#146;s financial statements, but may be
    reviewed on an interim basis if a major event occurs that may
    affect the issuer&#146;s credit quality.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    prelim&#160;Preliminary ratings, with the &#145;prelim&#146;
    qualifier, may be assigned to obligors or obligations, including
    financial programs, in the circumstances described below.
    Assignment of a final rating is conditional on the receipt by
    S&#038;P of appropriate documentation. S&#038;P reserves the
    right not to issue a final rating. Moreover, if a final rating
    is issued, it may differ from the preliminary rating.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preliminary ratings may be assigned to obligations, most
    commonly structured and project finance issues, pending receipt
    of final documentation and legal opinions.
</TD>
</TR>

</TABLE>
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    <BR>
    A-3
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<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preliminary ratings are assigned to Rule&#160;415 Shelf
    Registrations. As specific issues, with defined terms, are
    offered from the master registration, a final rating may be
    assigned to them in accordance with Standard&#160;&#038;
    Poor&#146;s policies.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preliminary ratings may be assigned to obligations that will
    likely be issued upon the obligor&#146;s emergence from
    bankruptcy or similar reorganization, based on late-stage
    reorganization plans, documentation and discussions with the
    obligor. Preliminary ratings may also be assigned to the
    obligors. These ratings consider the anticipated general credit
    quality of the reorganized or postbankruptcy issuer as well as
    attributes of the anticipated obligation(s).
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preliminary ratings may be assigned to entities that are being
    formed or that are in the process of being independently
    established when, in S&#038;P&#146;s opinion, documentation is
    close to final. Preliminary ratings may also be assigned to
    these entities&#146; obligations.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preliminary ratings may be assigned when a previously unrated
    entity is undergoing a well-formulated restructuring,
    recapitalization, significant financing or other transformative
    event, generally at the point that investor or lender
    commitments are invited. The preliminary rating may be assigned
    to the entity and to its proposed obligation(s). These
    preliminary ratings consider the anticipated general credit
    quality of the obligor, as well as attributes of the anticipated
    obligation(s), assuming successful completion of the
    transformative event. Should the transformative event not occur,
    S&#038;P would likely withdraw these preliminary ratings.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A preliminary recovery rating may be assigned to an obligation
    that has a preliminary issue credit rating.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    t&#160;This symbol indicates termination structures that are
    designed to honor their contracts to full maturity or, should
    certain events occur, to terminate and cash settle all their
    contracts before their final maturity date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    uns(...)&#160;Unsolicited ratings are those credit ratings
    assigned at the initiative of S&#038;P and not at the request of
    the issuer or its agents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Municipal
    Short-Term Note Ratings Definitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Standard&#160;&#038; Poor&#146;s U.S.&#160;municipal note
    rating reflects S&#038;P&#146;s opinion about the liquidity
    factors and market access risks unique to the notes. Notes due
    in three years or less will likely receive a note rating. Notes
    with an original maturity of more than three years will most
    likely receive a long-term debt rating. In determining which
    type of rating, if any, to assign, S&#038;P&#146;s analysis will
    review the following considerations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Amortization schedule&#160;&#151; the larger the final maturity
    relative to other maturities, the more likely it will be treated
    as a note;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Source of payment&#160;&#151; the more dependent the issue is on
    the market for its refinancing, the more likely it will be
    treated as a note.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Note rating symbols are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    SP-1&#160;Strong capacity to pay principal and interest. An
    issue determined to possess a very strong capacity to pay debt
    service is given a plus (+) designation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    SP-2&#160;Satisfactory capacity to pay principal and interest,
    with some vulnerability to adverse financial and economic
    changes over the term of the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    SP-3&#160;Speculative capacity to pay principal and interest.
</DIV>
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    <BR>
    A-4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Moody&#146;s Investors Service, Inc.</I></B>&#160;&#151; A
    brief description of the applicable Moody&#146;s Investors
    Service, Inc. (&#147;Moody&#146;s&#148;) rating symbols and
    their meanings (as published by Moody&#146;s) follows:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Obligation Ratings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Moody&#146;s long-term ratings are opinions of the relative
    credit risk of financial obligations with an original maturity
    of one year or more. They address the possibility that a
    financial obligation will not be honored as promised. Such
    ratings use Moody&#146;s Global Scale and reflect both the
    likelihood of default and any financial loss suffered in the
    event of default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Aaa&#160;Obligations rated Aaa are judged to be of the highest
    quality, with minimal credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Aa&#160;Obligations rated Aa are judged to be of high quality
    and are subject to very low credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A&#160;Obligations rated A are considered upper-medium grade and
    are subject to low credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Baa&#160;Obligations rated Baa are subject to moderate credit
    risk. They are considered medium grade and as such may possess
    certain speculative characteristics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Ba&#160;Obligations rated Ba are judged to have speculative
    elements and are subject to substantial credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B&#160;Obligations rated B are considered speculative and are
    subject to high credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Caa&#160;Obligations rated Caa are judged to be of poor standing
    and are subject to very high credit risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Ca&#160;Obligations rated Ca are highly speculative and are
    likely in, or very near, default, with some prospect of recovery
    of principal and interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    C&#160;Obligations rated C are the lowest rated class of bonds
    and are typically in default, with little prospect for recovery
    of principal or interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Note:&#160;&#160;Moody&#146;s appends numerical modifiers 1, 2,
    and 3 to each generic rating classification from Aa through Caa.
    The modifier 1 indicates that the obligation ranks in the higher
    end of its generic rating category; the modifier 2 indicates a
    mid-range ranking; and the modifier 3 indicates a ranking in the
    lower end of that generic rating category.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Short-Term
    Obligation Ratings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Moody&#146;s short-term ratings are opinions of the ability of
    issuers to honor short-term financial obligations. Ratings may
    be assigned to issuers, short-term programs or to individual
    short-term debt instruments. Such obligations generally have an
    original maturity not exceeding thirteen months, unless
    explicitly noted. Moody&#146;s employs the following
    designations to indicate the relative repayment ability of rated
    issuers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">P-1&#160;Issuers</FONT>
    (or supporting institutions) rated Prime-1 have a superior
    ability to repay short-term debt obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">P-2&#160;Issuers</FONT>
    (or supporting institutions) rated Prime-2 have a strong ability
    to repay short-term debt obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">P-3&#160;Issuers</FONT>
    (or supporting institutions) rated Prime-3 have an acceptable
    ability to repay short-term obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    NP&#160;Issuers (or supporting institutions) rated Not Prime do
    not fall within any of the Prime rating categories.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">US
    Municipal Short-Term Obligation Ratings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There are three rating categories for short-term municipal
    obligations that are considered investment grade. These ratings
    are designated as Municipal Investment Grade (MIG) and are
    divided into three levels&#160;&#151; MIG 1 through MIG 3. In
    addition, those short-term obligations that are of speculative
    quality are designated SG, or speculative grade. MIG ratings
    expire at the maturity of the obligation.
</DIV>
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    <BR>
    A-5
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<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    MIG1&#160;This designation denotes superior credit quality.
    Excellent protection is afforded by established cash flows,
    highly reliable liquidity support, or demonstrated broad-based
    access to the market for refinancing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    MIG2&#160;This designation denotes strong credit quality.
    Margins of protection are ample, although not as large as in the
    preceding group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    MIG3&#160;This designation denotes acceptable credit quality.
    Liquidity and cash-flow protection may be narrow, and market
    access for refinancing is likely to be less well-established.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    SG&#160;This designation denotes speculative-grade credit
    quality. Debt instruments in this category may lack sufficient
    margins of protection.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Ratings Symbols</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    e&#160;<B><I>Expected ratings.</I></B>&#160;&#160;To address
    market demand for timely information on particular types of
    credit ratings, Moody&#146;s has licensed to certain third
    parties the right to generate &#147;Expected Ratings.&#148;
    Expected Ratings are designated by an &#147;e&#148; after the
    rating code, and are intended to anticipate Moody&#146;s
    forthcoming rating assignments based on reliable information
    from third-party sources (such as the issuer or underwriter
    associated with the particular securities) or established
    Moody&#146;s rating practices (i.e., medium term notes are
    typically, but not always, assigned the same rating as the
    note&#146;s program rating). Expected Ratings will exist only
    until Moody&#146;s confirms the Expected Rating, or issues a
    different rating for the relevant instrument. Moody&#146;s
    encourages market participants to contact Moody&#146;s Ratings
    Desk or visit www.moodys.com if they have questions regarding
    Expected Ratings, or wish Moody&#146;s to confirm an Expected
    Rating.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (P)&#160;<B><I>Provisional Ratings.</I></B>&#160;&#160;As a
    service to the market and at the request of an issuer,
    Moody&#146;s will often assign a provisional rating when the
    assignment of a final rating is subject to the fulfillment of
    contingencies but it is highly likely that the rating will
    become definitive after all documents are received or an
    obligation is issued into the market. A provisional rating is
    denoted by placing a (P)&#160;in front of the rating. Such
    ratings are typically assigned to shelf registrations under SEC
    rule&#160;415 or transaction-based structures that require
    investor education. When a transaction uses a well-established
    structure and the transaction&#146;s structure and terms are not
    expected to change prior to sale in a manner that would affect
    the rating, a definitive rating may be assigned directly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    #&#160;<B><I>Refundeds.</I></B>&#160;&#160;Issues that are
    secured by escrowed funds held in trust, reinvested in direct,
    non-callable US government obligations or non-callable
    obligations unconditionally guaranteed by the US Government or
    Resolution Funding Corporation are identified with a # (hatch
    mark) symbol, <I>e.g.</I>, #Aaa.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    WR&#160;<B><I>Withdrawn.</I></B>&#160;&#160;When Moody&#146;s no
    longer rates an obligation on which it previously maintained a
    rating, the symbol WR is employed. Please see Moody&#146;s
    Guidelines for the Withdrawal of Ratings, available on
    www.moodys.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    NR&#160;<B><I>Not Rated.</I></B>&#160;&#160;NR is assigned to an
    unrated issuer, obligation and/or program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    NAV&#160;<B><I>Not Available.</I></B>&#160;&#160;An issue that
    Moody&#146;s has not yet rated is denoted by the NAV symbol.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    TWR&#160;<B><I>Terminated Without Rating.</I></B>&#160;&#160;The
    symbol TWR applies primarily to issues that mature or are
    redeemed without having been rated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Fitch IBCA, Inc.</I></B>&#160;&#151;&#160;A brief
    description of the applicable Fitch IBCA, Inc.
    (&#147;Fitch&#148;) ratings symbols and meanings (as published
    by Fitch) follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Rated entities in a number of sectors, including financial and
    non-financial corporations, sovereigns and insurance companies,
    are generally assigned Issuer Default Ratings (IDRs). IDRs opine
    on an entity&#146;s relative vulnerability to default on
    financial obligations. The &#147;threshold&#148; default risk
    addressed by the IDR is generally that of the financial
    obligations whose non-payment would best reflect the uncured
    failure of that entity. As such, IDRs also address relative
    vulnerability to bankruptcy, administrative receivership or
    similar concepts, although the agency recognizes that issuers
    may also make pre-emptive and therefore voluntary use of such
    mechanisms.
</DIV>
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    <BR>
    A-6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In aggregate, IDRs provide an ordinal ranking of issuers based
    on the agency&#146;s view of their relative vulnerability to
    default, rather than a prediction of a specific percentage
    likelihood of default. For historical information on the default
    experience of Fitch-rated issuers, please consult the transition
    and default performance studies available from the Fitch Ratings
    website.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Credit Ratings Scales</FONT></I></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    AAA <B><I>Highest Credit
    Quality.</I></B>&#160;&#160;&#145;AAA&#146; ratings denote the
    lowest expectation of default risk. They are assigned only in
    cases of exceptionally strong capacity for payment of financial
    commitments. This capacity is highly unlikely to be adversely
    affected by foreseeable events.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    AA <B><I>Very High Credit
    Quality.</I></B>&#160;&#160;&#145;AA&#146; ratings denote
    expectations of very low default risk. They indicate very strong
    capacity for payment of financial commitments. This capacity is
    not significantly vulnerable to foreseeable events.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A <B><I>High Credit Quality.</I></B>&#160;&#160;&#145;A&#146;
    ratings denote expectations of low default risk. The capacity
    for payment of financial commitments is considered strong. This
    capacity may, nevertheless, be more vulnerable to adverse
    business or economic conditions than is the case for higher
    ratings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BBB <B><I>Good Credit
    Quality.</I></B>&#160;&#160;&#145;BBB&#146; ratings indicate
    that expectations of default risk are currently low. The
    capacity for payment of financial commitments is considered
    adequate but adverse business or economic conditions are more
    likely to impair this capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BB <B><I>Speculative.</I></B>&#160;&#160;&#145;BB&#146; ratings
    indicate an elevated vulnerability to default risk, particularly
    in the event of adverse changes in business or economic
    conditions over time; however, business or financial flexibility
    exists which supports the servicing of financial commitments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B <B><I>Highly speculative.</I></B>&#160;&#160;&#145;B&#146;
    ratings indicate that material default risk is present, but a
    limited margin of safety remains. Financial commitments are
    currently being met; however, capacity for continued payment is
    vulnerable to deterioration in the business and economic
    environment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    CCC <B><I>Substantial credit risk.</I></B>&#160;&#160;Default is
    a real possibility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    CC <B><I>Very high levels of credit
    risk.</I></B>&#160;&#160;Default of some kind appears probable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    C <B><I>Exceptionally high levels of credit
    risk.</I></B>&#160;&#160;Default is imminent or inevitable, or
    the issuer is in standstill. Conditions that are indicative of a
    &#145;C&#146; category rating for an issuer include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    a.&#160;the issuer has entered into a grace or cure period
    following non-payment of a material financial obligation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    b.&#160;the issuer has entered into a temporary negotiated
    waiver or standstill agreement following a payment default on a
    material financial obligation;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    c.&#160;Fitch Ratings otherwise believes a condition of
    &#145;RD&#146; or &#145;D&#146; to be imminent or inevitable,
    including through the formal announcement of a coercive debt
    exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    RD <B><I>Restricted default.</I></B>&#160;&#160;&#145;RD&#146;
    ratings indicate an issuer that in Fitch Ratings&#146; opinion
    has experienced an uncured payment default on a bond, loan or
    other material financial obligation but which has not entered
    into bankruptcy filings, administration, receivership,
    liquidation or other formal
    <FONT style="white-space: nowrap">winding-up</FONT>
    procedure, and which has not otherwise ceased business. This
    would include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    a.&#160;the selective payment default on a specific class or
    currency of debt;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    b.&#160;the uncured expiry of any applicable grace period, cure
    period or default forbearance period following a payment default
    on a bank loan, capital markets security or other material
    financial obligation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    c.&#160;the extension of multiple waivers or forbearance periods
    upon a payment default on one or more material financial
    obligations, either in series or in parallel;&#160;or
</DIV>
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    <BR>
    A-7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    d.&#160;execution of a coercive debt exchange on one or more
    material financial obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    D&#160;<B><I>Default.</I></B>&#160;&#160;&#145;D&#146; ratings
    indicate an issuer that in Fitch Ratings&#146; opinion has
    entered into bankruptcy filings, administration, receivership,
    liquidation or other formal
    <FONT style="white-space: nowrap">winding-up</FONT>
    procedure, or which has otherwise ceased business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Default ratings are not assigned prospectively to entities or
    their obligations; within this context, non-payment on an
    instrument that contains a deferral feature or grace period will
    generally not be considered a default until after the expiration
    of the deferral or grace period, unless a default is otherwise
    driven by bankruptcy or other similar circumstance, or by a
    coercive debt exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    &#147;Imminent&#148; default typically refers to the occasion
    where a payment default has been intimated by the issuer, and is
    all but inevitable. This may, for example, be where an issuer
    has missed a scheduled payment, but (as is typical) has a grace
    period during which it may cure the payment default. Another
    alternative would be where an issuer has formally announced a
    coercive debt exchange, but the date of the exchange still lies
    several days or weeks in the immediate future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In all cases, the assignment of a default rating reflects the
    agency&#146;s opinion as to the most appropriate rating category
    consistent with the rest of its universe of ratings, and may
    differ from the definition of default under the terms of an
    issuer&#146;s financial obligations or local commercial practice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Note: The modifiers &#147;+&#148; or &#147;-&#148; may be
    appended to a rating to denote relative status within major
    rating categories. Such suffixes are not added to the
    &#145;AAA&#146; Long-Term IDR category, or to Long-Term IDR
    categories below &#147;B&#146;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Specific limitations relevant to the structured, project and
    public finance obligation rating scale include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not predict a specific percentage of default
    likelihood over any given time period.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the market value of any
    issuer&#146;s securities or stock, or the likelihood that this
    value may change.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the liquidity of the issuer&#146;s
    securities or stock.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the possible loss severity on an
    obligation should an obligation default.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on any quality related to a
    transaction&#146;s profile other than the agency&#146;s opinion
    on the relative vulnerability to default of each rated tranche
    or security.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Ratings assigned by Fitch Ratings articulate an opinion on
    discrete and specific areas of risk. The above list is not
    exhaustive, and is provided for the reader&#146;s convenience.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Short-Term
    Ratings Assigned to Obligations in Corporate, Public and
    Structured Finance</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A short-term issuer or obligation rating is based in all cases
    on the short-term vulnerability to default of the rated entity
    or security stream and relates to the capacity to meet financial
    obligations in accordance with the documentation governing the
    relevant obligation. Short-Term Ratings are assigned to
    obligations whose initial maturity is viewed as
    &#147;short-term&#148; based on market convention. Typically,
    this means up to 13&#160;months for corporate, sovereign, and
    structured obligations, and up to 36&#160;months for obligations
    in U.S.&#160;public finance markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    F1&#160;<B><I>Highest short-term credit
    quality.</I></B>&#160;&#160;Indicates the strongest intrinsic
    capacity for timely payment of financial commitments; may have
    an added &#147;+&#148; to denote any exceptionally strong credit
    feature.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    F2&#160;<B><I>Good short-term credit
    quality.</I></B>&#160;&#160;Good intrinsic capacity for timely
    payment of financial commitments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    F3&#160;<B><I>Fair short-term credit
    quality.</I></B>&#160;&#160;The intrinsic capacity for timely
    payment of financial commitments is adequate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    B&#160;<B><I>Speculative short-term credit
    quality.</I></B>&#160;&#160;Minimal capacity for timely payment
    of financial commitments, plus heightened vulnerability to near
    term adverse changes in financial and economic conditions.
</DIV>
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    <BR>
    A-8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    C&#160;<B><I>High short-term default
    risk.</I></B>&#160;&#160;Default is a real possibility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    RD&#160;<B><I>Restricted default.</I></B>&#160;&#160;Indicates
    an entity that has defaulted on one or more of its financial
    commitments, although it continues to meet other financial
    obligations. Applicable to entity ratings only.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    D&#160;<B><I>Default.</I></B>&#160;&#160;Indicates a broad-based
    default event for an entity, or the default of a specific
    short-term obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Specific limitations relevant to the Short-Term Ratings scale
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not predict a specific percentage of default
    likelihood over any given time period.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the market value of any
    issuer&#146;s securities or stock, or the likelihood that this
    value may change.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the liquidity of the issuer&#146;s
    securities or stock.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on the possible loss severity on an
    obligation should an obligation default.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratings do not opine on any quality related to an issuer or
    transaction&#146;s profile other than the agency&#146;s opinion
    on the relative vulnerability to default of the rated issuer or
    obligation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ratings assigned by Fitch Ratings articulate an opinion on
    discrete and specific areas of risk. The above list is not
    exhaustive, and is provided for the reader&#146;s convenience.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ratings assigned by Fitch Ratings articulate an opinion on
    discrete and specific areas of risk. The above list is not
    exhaustive, and is provided for the reader&#146;s convenience.
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-9
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113137'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;B<BR>
    <BR>
    </A>Proxy Voting Policies<BR>
    For The BlackRock-Advised Funds<BR>
    <BR>
    December, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y93113tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%">&nbsp;</TD>	<!-- colindex=01 type=quadleft -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=01 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113201'>I.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#Y93113201'>Introduction</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113202'>II.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113202'>Proxy Voting Policies</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113203'>A. Boards of Directors</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#Y93113204'>B. Auditors</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113205'>C. Compensation and Benefits</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113206'>D. Capital Structure</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113207'>E. Corporate Charter and By-Laws</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113208'>F. Environmental and Social Issues</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113209'>III.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#Y93113209'>Conflicts Management</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y93113210'>IV.</A>
</DIV>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#Y93113210'>Reports to the Board</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    B-4
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    B-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y93113201'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">I.
    Introduction</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trustees/Directors (&#147;Directors&#148;) of the
    BlackRock-Advised Funds (the &#147;Funds&#148;) have the
    responsibility for voting proxies relating to portfolio
    securities of the Funds, and have determined that it is in the
    best interests of the Funds and their shareholders to delegate
    that responsibility to BlackRock Advisers, LLC and its
    affiliated U.S.&#160;Registered investment advisers
    (&#147;BlackRock&#148;), the investment adviser to the Funds, as
    part of BlackRock&#146;s authority to manage, acquire and
    dispose of account assets. The Directors hereby direct BlackRock
    to vote such proxies in accordance with this Policy, and any
    proxy voting guidelines that the Advisor determines are
    appropriate and in the best interests of the Funds&#146;
    shareholders and which are consistent with the principles
    outlined in this Policy. The Directors have authorized BlackRock
    to utilize an unaffiliated third-party as its agent to vote
    portfolio proxies in accordance with this Policy and to maintain
    records of such portfolio proxy voting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">Rule&#160;206(4)-6</FONT>
    under the Investment Advisers Act of 1940 requires, among other
    things, that an investment adviser that exercises voting
    authority over clients&#146; proxy voting adopt policies and
    procedures reasonably designed to ensure that the adviser votes
    proxies in the best interests of clients, discloses to its
    clients information about those policies and procedures and also
    discloses to clients how they may obtain information on how the
    adviser has voted their proxies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock has adopted separate but substantially similar
    guidelines and procedures that are consistent with the
    principles of this Policy. BlackRock&#146;s Corporate Governance
    Committee (the &#147;Committee&#148;), addresses proxy voting
    issues on behalf of BlackRock and its clients, including the
    Funds. The Committee is comprised of senior members of
    BlackRock&#146;s Portfolio Management and Administration Groups
    and is advised by BlackRock&#146;s Legal and Compliance
    Department.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock votes (or refrains from voting) proxies for each Fund
    in a manner that BlackRock, in the exercise of its independent
    business judgment, concludes are in the best economic interests
    of such Fund. In some cases, BlackRock may determine that it is
    in the best economic interests of a Fund to refrain from
    exercising the Fund&#146;s proxy voting rights (such as, for
    example, proxies on certain
    <FONT style="white-space: nowrap">non-U.S.&#160;Securities</FONT>
    that might impose costly or time-consuming in-person voting
    requirements). With regard to the relationship between
    securities lending and proxy voting, BlackRock&#146;s approach
    is also driven by our clients&#146; economic interests. The
    evaluation of the economic desirability of recalling loans
    involves balancing the revenue producing value of loans against
    the likely economic value of casting votes. Based on our
    evaluation of this relationship, BlackRock believes that the
    likely economic value of casting a vote generally is less than
    the securities lending income, either because the votes will not
    have significant economic consequences or because the outcome of
    the vote would not be affected by BlackRock recalling loaned
    securities in order to ensure they are voted. Periodically,
    BlackRock analyzes the process and benefits of voting proxies
    for securities on loan, and will consider whether any
    modification of its proxy voting policies or procedures are
    necessary in light of any regulatory changes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock will normally vote on specific proxy issues in
    accordance with BlackRock&#146;s proxy voting guidelines.
    BlackRock&#146;s proxy voting guidelines provide detailed
    guidance as to how to vote proxies on certain important or
    commonly raised issues. BlackRock may, in the exercise of its
    business judgment, conclude that the proxy voting guidelines do
    not cover the specific matter upon which a proxy vote is
    requested, or that an exception to the proxy voting guidelines
    would be in the best economic interests of a Fund. BlackRock
    votes (or refrains from voting) proxies without regard to the
    relationship of the issuer of the proxy (or any shareholder of
    such issuer) to the Fund, the Fund&#146;s affiliates (if any),
    BlackRock or BlackRock&#146;s affiliates. When voting proxies,
    BlackRock attempts to encourage companies to follow practices
    that enhance shareholder value and increase transparency and
    allow the market to place a proper value on their assets.
</DIV>

<A name='Y93113202'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">II. Proxy
    Voting Policies</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">A.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113203'></A><B><FONT style="font-family: 'Times New Roman', Times">Boards
    of Directors</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Funds generally support the board&#146;s nominees in the
    election of directors and generally supports proposals that
    strengthen the independence of boards of directors. As a general
    matter, the Funds believe that a company&#146;s board of
    directors (rather than shareholders) is most likely to have
    access to important, nonpublic information
</DIV>
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    <BR>
    B-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    regarding a company&#146;s business and prospects, and is
    therefore best-positioned to set corporate policy and oversee
    management. The Funds therefore believe that the foundation of
    good corporate governance is the election of responsible,
    qualified, independent corporate directors who are likely to
    diligently represent the interests of shareholders and oversee
    management of the corporation in a manner that will seek to
    maximize shareholder value over time. In individual cases,
    consideration may be given to a director nominee&#146;s history
    of representing shareholder interests as a director of the
    company issuing the proxy or other companies, or other factors
    to the extent deemed relevant by the Committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">B.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113204'></A><B><FONT style="font-family: 'Times New Roman', Times">Auditors</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These proposals concern those issues submitted to shareholders
    related to the selection of auditors. As a general matter, the
    Funds believe that corporate auditors have a responsibility to
    represent the interests of shareholders and provide an
    independent view on the propriety of financial reporting
    decisions of corporate management. While the Funds anticipate
    that BlackRock will generally defer to a corporation&#146;s
    choice of auditor, in individual cases, consideration may be
    given to an auditors&#146; history of representing shareholder
    interests as auditor of the company issuing the proxy or other
    companies, to the extent deemed relevant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">C.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113205'></A><B><FONT style="font-family: 'Times New Roman', Times">Compensation
    and Benefits</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These proposals concern those issues submitted to shareholders
    related to management compensation and employee benefits. As a
    general matter, the Funds favor disclosure of a company&#146;s
    compensation and benefit policies and oppose excessive
    compensation, but believe that compensation matters are normally
    best determined by a corporation&#146;s board of directors,
    rather than shareholders. Proposals to &#147;micro-manage&#148;
    a company&#146;s compensation practices or to set arbitrary
    restrictions on compensation or benefits should therefore
    generally not be supported.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">D.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113206'></A><B><FONT style="font-family: 'Times New Roman', Times">Capital
    Structure</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These proposals relate to various requests, principally from
    management, for approval of amendments that would alter the
    capital structure of a company, such as an increase in
    authorized shares. As a general matter, the Funds expect that
    BlackRock will support requests that it believes enhance the
    rights of common shareholders and oppose requests that appear to
    be unreasonably dilutive.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">E.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113207'></A><B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Charter and By-Laws</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These proposals relate to various requests for approval of
    amendments to a corporation&#146;s charter or by-laws. As a
    general matter, the Funds generally vote against anti-takeover
    proposals and proposals that would create additional barriers or
    costs to corporate transactions that are likely to deliver a
    premium to shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">F.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='Y93113208'></A><B><FONT style="font-family: 'Times New Roman', Times">Environmental
    and Social Issues</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These are shareholder proposals addressing either corporate
    social and environmental policies or requesting specific
    reporting on these issues. The Funds generally do not support
    proposals on social issues that lack a demonstrable economic
    benefit to the issuer and the Fund investing in such issuer.
    BlackRock seeks to make proxy voting decisions in the manner
    most likely to protect and promote the long-term economic value
    of the securities held in client accounts. We intend to support
    economically advantageous corporate practices while leaving
    direct oversight of company management and strategy to boards of
    directors. We seek to avoid micromanagement of companies, as we
    believe that a company&#146;s board of directors is best
    positioned to represent shareholders and oversee management on
    shareholders behalf. Issues of corporate social and
    environmental responsibility are evaluated on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis within this framework.
</DIV>
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    <BR>
    B-3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113209'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">III.
    Conflicts Management</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock maintains policies and procedures that are designed to
    prevent any relationship between the issuer of the proxy (or any
    shareholder of the issuer) and a Fund, a Fund&#146;s affiliates
    (if any), BlackRock or BlackRock&#146;s affiliates, from having
    undue influence on BlackRock&#146;s proxy voting activity. In
    certain instances, BlackRock may determine to engage an
    independent fiduciary to vote proxies as a further safeguard
    against potential conflicts of interest or as otherwise required
    by applicable law. The independent fiduciary may either vote
    such proxies or provide BlackRock with instructions as to how to
    vote such proxies. In the latter case, BlackRock votes the proxy
    in accordance with the independent fiduciary&#146;s
    determination.
</DIV>

<A name='Y93113210'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">IV.
    Reports To the Board</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BlackRock will report to the Directors on proxy votes it has
    made on behalf of the Funds at least annually.
</DIV>
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    <BR>
    B-4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='Y93113138'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;C<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    </A><B><FONT style="font-family: 'Times New Roman', Times">General
    Characteristics and Risks<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">of
    Strategic Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to manage the risk of its securities portfolio, or to
    enhance income or gain as described in the prospectus, the Trust
    may engage in Strategic Transactions. The Trust may engage in
    such activities in the Advisor&#146;s or
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    discretion, and may not necessarily be engaging in such
    activities when movements in interest rates that could affect
    the value of the assets of the Trust occur. The Trust&#146;s
    ability to pursue certain of these strategies may be limited by
    applicable regulations of the CFTC. Certain Strategic
    Transactions may give rise to taxable income.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Put and
    Call Options on Securities and Indices</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust may purchase and sell put and call options on
    securities and indices. A put option gives the purchaser of the
    option the right to sell and the writer the obligation to buy
    the underlying security at the exercise price during the option
    period. The Trust may also purchase and sell options on bond
    indices (&#147;index options&#148;). Index options are similar
    to options on securities except that, rather than taking or
    making delivery of securities underlying the option at a
    specified price upon exercise, an index option gives the holder
    the right to receive cash upon exercise of the option if the
    level of the bond index upon which the option is based is
    greater, in the case of a call, or less, in the case of a put,
    than the exercise price of the option. The purchase of a put
    option on a debt security could protect the Trust&#146;s
    holdings in a security or a number of securities against a
    substantial decline in the market value. A call option gives the
    purchaser of the option the right to buy and the seller the
    obligation to sell the underlying security or index at the
    exercise price during the option period or for a specified
    period prior to a fixed date. The purchase of a call option on a
    security could protect the Trust against an increase in the
    price of a security that it intended to purchase in the future.
    In the case of either put or call options that it has purchased,
    if the option expires without being sold or exercised, the Trust
    will experience a loss in the amount of the option premium plus
    any related commissions. When the Trust sells put and call
    options, it receives a premium as the seller of the option. The
    premium that the Trust receives for selling the option will
    serve as a partial hedge, in the amount of the option premium,
    against changes in the value of the securities in its portfolio.
    During the term of the option, however, a covered call seller
    has, in return for the premium on the option, given up the
    opportunity for capital appreciation above the exercise price of
    the option if the value of the underlying security increases,
    but has retained the risk of loss should the price of the
    underlying security decline. Conversely, a secured put seller
    retains the risk of loss should the market value of the
    underlying security decline be low the exercise price of the
    option, less the premium received on the sale of the option. The
    Trust is authorized to purchase and sell exchange-listed options
    and
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    options (&#147;OTC Options&#148;) which are privately negotiated
    with the counterparty. Listed options are issued by the Options
    Clearing Corporation (&#147;OCC&#148;) which guarantees the
    performance of the obligations of the parties to such options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Trust&#146;s ability to close out its position as a
    purchaser or seller of an exchange-listed put or call option is
    dependent upon the existence of a liquid secondary market on
    option exchanges. Among the possible reasons for the absence of
    a liquid secondary market on an exchange are:
    (i)&#160;insufficient trading interest in certain options;
    (ii)&#160;restrictions on transactions imposed by an exchange;
    (iii)&#160;trading halts, suspensions or other restrictions
    imposed with respect to particular classes or series of options
    or underlying securities; (iv)&#160;interruption of the normal
    operations on an exchange; (v)&#160;inadequacy of the facilities
    of an exchange or OCC to handle current trading volume; or
    (vi)&#160;a decision by one or more exchanges to discontinue the
    trading of options (or a particular class or series of options),
    in which event the secondary market on that exchange (or in that
    class or series of options) would cease to exist, although
    outstanding options on that exchange that had been listed by the
    OCC as a result of trades on that exchange would generally
    continue to be exercisable in accordance with their terms. OTC
    Options are purchased from or sold to dealers, financial
    institutions or other counterparties which have entered into
    direct agreements with the Trust. With OTC Options, such
    variables as expiration date, exercise price and premium will be
    agreed upon between the Trust and the counterparty, without the
    intermediation of a third party such as the OCC. If the
    counterparty fails to make or take delivery of the securities
    underlying an option it has written, or otherwise settle the
    transaction in accordance with the terms of that option as
    written, the Trust would lose the premium paid for the option as
    well as any anticipated benefit of the transaction. As the Trust
    must rely on the credit quality of the
</DIV>
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    <BR>
    C-1
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    counterparty rather than the guarantee of the OCC, it will only
    enter into OTC Options with counterparties with the highest
    long-term credit ratings, and with primary United States
    government securities dealers recognized by the Federal Reserve
    Bank of New York.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The hours of trading for options on debt securities may not
    conform to the hours during which the underlying securities are
    traded. To the extent that the option markets close before the
    markets for the underlying securities, significant price and
    rate movements can take place in the underlying markets that
    cannot be reflected in the option markets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Futures
    Contracts and Related Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Characteristics.</I>&#160;&#160;The Trust may sell financial
    futures contracts or purchase put and call options on such
    futures as a hedge against anticipated interest rate changes or
    other market movements. The sale of a futures contract creates
    an obligation by the Trust, as seller, to deliver the specific
    type of financial instrument called for in the contract at a
    specified future time for a specified price. Options on futures
    contracts are similar to options on securities except that an
    option on a futures contract gives the purchaser the right in
    return for the premium paid to assume a position in a futures
    contract (a long position if the option is a call and a short
    position if the option is a put).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Margin Requirements.</I>&#160;&#160;At the time a futures
    contract is purchased or sold, the Trust must allocate cash or
    securities as a deposit payment (&#147;initial margin&#148;). It
    is expected that the initial margin that the Trust will pay may
    range from approximately 1% to approximately 5% of the value of
    the securities or commodities underlying the contract. In
    certain circumstances, however, such as periods of high
    volatility, the Trust may be required by an exchange to increase
    the level of its initial margin payment. Additionally, initial
    margin requirements may be increased generally in the future by
    regulatory action. An outstanding futures contract is valued
    daily and the payment in case of &#147;variation margin&#148;
    may be required, a process known as &#147;marking to the
    market.&#148; Transactions in listed options and futures are
    usually settled by entering into an offsetting transaction, and
    are subject to the risk that the position may not be able to be
    closed if no offsetting transaction can be arranged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Limitations on Use of Futures and Options on
    Futures.</I>&#160;&#160;The Trust&#146;s use of futures and
    options on futures will in all cases be consistent with
    applicable regulatory requirements and in particular the rules
    and regulations of the CFTC. Under such regulations the Trust
    currently may enter into such transactions without limit for
    bona fide hedging purposes, including risk management and
    duration management and other portfolio strategies. The Trust
    may also engage in transactions in futures contracts or related
    options for non-hedging purposes to enhance income or gain
    provided that the Trust will not enter into a futures contract
    or related option (except for closing transactions) for purposes
    other than bona fide hedging, or risk management including
    duration management if, immediately thereafter, the sum of the
    amount of its initial deposits and premiums on open contracts
    and options would exceed 5% of the Trust&#146;s liquidation
    value, i.e., net assets (taken at current value); provided,
    however, that in the case of an option that is
    <FONT style="white-space: nowrap">in-the-money</FONT>
    at the time of the purchase, the
    <FONT style="white-space: nowrap">in-the-money</FONT>
    amount may be excluded in calculating the 5% limitation. The
    above policies are non-fundamental and may be changed by the
    Trust&#146;s board of trustees at any time. Also, when required,
    an account of cash equivalents designated on the books and
    records will be maintained and marked to market on a daily basis
    in an amount equal to the market value of the contract. The
    Trust reserves the right to comply with such different standard
    as may be established from time to time by CFTC rules and
    regulations with respect to the purchase or sale of futures
    contracts or options thereon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Segregation and Cover Requirements.</I>&#160;&#160;Futures
    contracts, interest rate swaps, caps, floors and collars, short
    sales, reverse repurchase agreements and dollar rolls, and
    listed or OTC options on securities, indices and futures
    contracts sold by the Trust are generally subject to earmarking
    and coverage requirements of either the CFTC or the SEC, with
    the result that, if the Trust does not hold the security or
    futures contract underlying the instrument, the Trust will be
    required to designate on its books and records an ongoing basis,
    cash, U.S.&#160;government securities, or other liquid high
    grade debt obligations in an amount at least equal to the
    Trust&#146;s obligations with respect to such instruments. Such
    amounts fluctuate as the obligations increase or decrease. The
    earmarking requirement can result in the Trust maintaining
    securities positions it would otherwise liquidate, segregating
    assets at a time when it might be disadvantageous to do so or
    otherwise restrict portfolio management.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    C-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y93113tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Strategic Transactions Present Certain
    Risks.</I>&#160;&#160;With respect to hedging and risk
    management, the variable degree of correlation between price
    movements of hedging instruments and price movements in the
    position being hedged create the possibility that losses on the
    hedge may be greater than gains in the value of the Trust&#146;s
    position. The same is true for such instruments entered into for
    income or gain. In addition, certain instruments and markets may
    not be liquid in all circumstances. As a result, in volatile
    markets, the Trust may not be able to close out a transaction
    without incurring losses substantially greater than the initial
    deposit. Although the contemplated use of these instruments
    predominantly for hedging should tend to minimize the risk of
    loss due to a decline in the value of the position, at the same
    time they tend to limit any potential gain which might result
    from an increase in the value of such position. The ability of
    the Trust to successfully utilize Strategic Transactions will
    depend on the Advisor&#146;s and the
    <FONT style="white-space: nowrap">Sub-Advisors&#146;</FONT>
    ability to predict pertinent market movements and sufficient
    correlations, which cannot be assured. Finally, the daily
    deposit requirements in futures contracts that the Trust has
    sold create an on going greater potential financial risk than do
    options transactions, where the exposure is limited to the cost
    of the initial premium. Losses due to the use of Strategic
    Transactions will reduce net asset value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Regulatory Considerations.</I>&#160;&#160;The Trust has
    claimed an exclusion from the term &#147;commodity pool
    operator&#148; under the Commodity Exchange Act and, therefore,
    is not subject to registration or regulation as a commodity pool
    operator under the Commodity Exchange Act.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    C-3
</DIV><!-- END PAGE WIDTH -->
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