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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000900092-09-001096.txt : 20091105
<SEC-HEADER>0000900092-09-001096.hdr.sgml : 20091105
<ACCEPTANCE-DATETIME>20091105154408
ACCESSION NUMBER:		0000900092-09-001096
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20090831
FILED AS OF DATE:		20091105
DATE AS OF CHANGE:		20091105
EFFECTIVENESS DATE:		20091105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK LTD DURATION INCOME TRUST
		CENTRAL INDEX KEY:			0001233681
		IRS NUMBER:				200096695
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21349
		FILM NUMBER:		091161081

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		888-825-227

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK LIMITED DURATION INCOME TRUST
		DATE OF NAME CHANGE:	20030611

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK MANAGED DURATION INCOME TRUST
		DATE OF NAME CHANGE:	20030529

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK MANAGED DURATION TRUST
		DATE OF NAME CHANGE:	20030516
</SEC-HEADER>
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<HTML>
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   <TITLE>blw.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="center">
<FONT face="ArialMT,Arial,Helvetica,sans-serif">UNITEDSTATES</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">SECURITIESANDEXCHANGECOMMISSION</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">Washington,D.C.20549</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM N-CSR</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INVESTMENT COMPANIES</FONT></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Company Act file number 811-21349</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name of Fund: BlackRock Limited Duration Income Trust (BLW)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Limited Duration Income Trust, 40 East 52</FONT><SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nd </FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Street, New York, NY 10022.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Registrant&#146;s telephone number, including area code: (800) 882-0052, Option 4</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of fiscal year end: 08/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of reporting period: 08/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 1 &#150; Report to Stockholders</FONT></P>

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<IMG src="brtax6ar0809x1x1.jpg" border=0>
<BR>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS</FONT><BR>
<BR>
<FONT size=5 face="DIN-Regular,Arial,Helvetica,sans-serif">Annual Report</FONT><BR>
<BR>
<FONT face="DIN-Regular,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (BHL)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (BLW)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc.</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc.</FONT></P>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NOT FDIC INSURED</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">MAY LOSE VALUE</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NO BANK GUARANTEE</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=78%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Table of Contents</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=right style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Page</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dear Shareholder</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Annual Report:</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Summaries</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Derivative Financial Instruments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Disclosure of Expenses</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Financial Statements</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedules of Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Cash Flows</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Notes to Financial Statements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Report of Independent Registered Public Accounting Firm</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Important Tax Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC Portfolio Summary</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC Financial Statements:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedule of Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Operations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Cash Flows</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC Notes to Financial Statements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC Report of Independent Registered Public Accounting Firm</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plan</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers and Directors</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additional Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">89</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">2 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Dear Shareholder</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The past 12 months reveal two distinct economic and market backdrops &#151; one of extreme investor pessimism and decided weakness, and another of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">economic data and upside surprises in corporate earnings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ticular, August marked the municipal market&#146;s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lost during 2008.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market, while less-risky fixed income investments posted stable, modest returns.</FONT></P>
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     <TD width=57%></TD>
     <TD width=25%></TD>
     <TD width=16%></TD></TR>
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	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Returns as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">6-month</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">12-month</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US equities (S&amp;P 500 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40.52%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18.25)%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Small cap US equities (Russell 2000 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48.25</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21.29)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International equities (MSCI Europe, Australasia, Far East Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.47</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14.95)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.61)</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.77</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Taxable fixed income (Barclays Capital US Aggregate Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.95</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.94</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax-exempt fixed income (Barclays Capital Municipal Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.61</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.67</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36.31</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* Formerly a Merrill Lynch Index.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an
index.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bulence, as ever, BlackRock&#146;s full resources are dedicated to the management of our clients&#146; assets. We invite you to visit </FONT><FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">www.blackrock.com/funds </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for our</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">continuing to serve you in the months and years ahead.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<IMG src="brtax6ar0809x3x1.jpg" border=0>
<BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Announcement to Shareholders</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (&#147;Barclays&#148;) in which Barclays&#146; Board of Directors had</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accepted BlackRock&#146;s offer to acquire Barclays Global Investors (&#147;BGI&#148;). At a special meeting held on August 6, 2009, BlackRock&#146;s proposed purchase
of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGI was approved by an overwhelming majority of Barclays&#146; voting shareholders, an important step toward closing the transaction. The combination of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.</FONT><BR>
<BR>
<FONT color="#4d4d4d" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">THIS PAGE NOT PART OF YOUR FUND REPORT </FONT><FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">3</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (BHL) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks high current income, with
a secondary objective of long-term capital appreciation.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned (2.65)% based on market price and (2.16)% based on net asset value (&#147;NAV&#148;). For the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">same period, the closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NAV basis. All returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which widened during the period, accounts for the difference between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and relatively low levels of lever-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">age (less than 20%). On balance, that positioning benefited the Fund relative to its more highly levered Lipper competitors, although returns would have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been higher over the trailing six-month period had the Fund maintained a higher leverage balance. The Fund&#146;s conservative positioning was a detractor dur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the last six months given the market&#146;s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">benefited performance in 2008, to a balance of less than 3%, which has benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=27%></TD>
     <TD width=8%></TD>
     <TD width=16%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on New York Stock Exchange (&#147;NYSE&#148;)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January 31, 2008</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;11.03)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.53%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.06</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.72</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution rate is not constant and is subject to
change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents loans outstanding as a percentage of total managed assets, which
is the total assets of the Fund (including any assets attributable to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">borrowings), minus the sum of liabilities (other than borrowing representing financial leverage). For a discussion of leveraging techniques utilized
by</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund, please see The Benefits and Risks of Leveraging on page 10.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.03</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.66</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12.88)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6.53</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.53</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.31</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12.44)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition of the Fund&#146;s long-term investments:</FONT>&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
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&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">94%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">99%</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">4 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide
investors with a high current income by investing primarily in a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">diversified portfolio of floating rate debt securities and instruments, including floating or variable rate loans, bonds, preferred securities (including convert-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ible preferred securities), notes or other debt securities or instruments that pay a floating rate of interest.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned (16.27)% based on market price and (23.82)% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance based on price and performance based on NAV. Unlike other funds in the Lipper category, the Fund invests a significant amount of its portfolio in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fixed-rate, high yield corporate bonds, and a portion in high yield floating rate loan interests (&#147;FRNs&#148;). During the 12 months, fixed-rate, high yield bonds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outperformed leveraged loans and this contributed to performance. Conversely, the Fund&#146;s credit quality has generally been skewed towards the lower credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality tiers, which had a negative impact on performance during the market&#146;s fall in 2008. Though it has benefited the Fund in 2009 as markets rallied, on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">balance, the positioning detracted relative to the Lipper category. The Fund&#146;s allocation to high yield FRNs also hampered results as these issues underper-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formed. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in 2008, to a balance of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than 3%, which further benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
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     <TD width=12%></TD>
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     <TD width=7%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD></TR>
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<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January 31, 2005</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;8.80)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.93%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0875</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.0500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right colspan=8>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The Monthly
Distribution per Share was decreased to &#36;0.0785. The Yield on</FONT>&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate.</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The new distribution rate is not constant and is subject to further change in the future.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents loans outstanding as a percentage of total managed assets, which is the total
assets of the Fund (including any assets attributable to</FONT>&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any borrowings), minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques
utilized</FONT>&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the Fund, please see The Benefits and Risks of Leveraging on page 10.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.80</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.77</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31.09)%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.04</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.70</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.74</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.94</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37.30)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.94</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5.35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition of the Fund&#146;s long-term investments and credit quality allocations</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Fund&#146;s corporate bond investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B/B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC/Caa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CC/Ca</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#148;) or Moody&#146;s
Investors</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Service (&#147;Moody&#146;s&#148;) ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 5</FONT></P>

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



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks high current
income and such preservation of capital as is consistent with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned (3.88)% based on market price and (8.88)% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. The per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group includes unleveraged continuously offered closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end funds. All returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which narrowed during the period, accounts for the difference between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and low levels of leverage (less</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than 20%). On balance, that positioning benefited the Fund versus its more highly levered Lipper competitors. The Fund also had about 20% of its portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in high yield corporate bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund&#146;s conservative position-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing was a detractor given the market&#146;s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which bene-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fited performance in 2008, to a balance of less than 3%, which further benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=29%></TD>
     <TD width=6%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;12.26)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.79%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.089835</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.078020</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The
Monthly Distribution per Share was decreased to &#36;0.081500. The Yield</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution
rate.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The new distribution rate is not constant and is subject to further change in the future.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents loans outstanding as a percentage of managed assets, which is
the total assets of the Fund, including any assets attributable to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any borrowing that may be outstanding, minus the sum of accrued liabilities (other than debt representing financial leverage). For a
discussion</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.26</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.49</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15.39)%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.68</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.79</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.93</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19.79)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.96</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition of the Fund&#146;s long-term investments and credit quality allocations of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s corporate bond investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B/B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC/Caa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D/D</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s
ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">6 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_9"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (BLW) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
and capital appreciation.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned 6.40% based on market price and (1.57)% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper High Current Yield Funds (Leveraged) category posted an average return of (2.57)% on a market price basis and (10.55)% on a NAV basis. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on price and performance based on NAV. The Fund&#146;s Lipper category is composed primarily of high yield securities. The Fund tends to invest 25% to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30% of its portfolio in investment-grade bonds, which helped relative performance as these securities outperformed high yield securities. Exposure to mort-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gage-backed securities and an overall conservative positioning in high yield securities also aided results. At the same time, the Fund typically invests about</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30% to 40% of its portfolio in bank loans; this detracted modestly from relative performance as loans underperformed high yield securities during the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period. The Fund&#146;s allocation to investment-grade credit, while performing strongly, was a detractor in the last six months of the period when returns trailed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that of high yield securities. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008, to a balance of less than 18%, which further benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=29%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=11%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">July 30, 2003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;14.09)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.03%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0825</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.9900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The
Monthly Distribution per Share was decreased to &#36;0.0700. The Yield on</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The new distribution rate is not constant and is subject to further change in the future.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the Fund&#146;s market price and net asset value per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.09</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.57</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.29)%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.83</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.83</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.95</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.53)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.81</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.86</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition of the Fund&#146;s long-term investments and credit quality allocations</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Fund&#146;s corporate bond and US government securities investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46%</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Government Sponsored</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agency Obligations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Treasury Obligations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC/Caa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign Agency Obligations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s
ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes US Government Sponsored Agency securities
and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Treasury Obligations, which are deemed AAA/Aaa by the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisor.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 7</FONT></P>

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



<!--$$/page=-->
<A name="page_10"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc. (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is a continuously offered closed-end
fund that seeks high current income and such preservation of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned (4.69)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">conservative positioning was a detractor given the market&#146;s strong returns. During the period, the Fund moved from a larger cash and short-term investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=29%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=13%></TD>
     <TD width=11%></TD>
     <TD width=9%></TD>
     <TD width=4%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November 3, 1989</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield based on Net Asset Value as of August 31, 2009 (&#36;7.16)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.021903</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.257890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Fund is a continuously offered closed-end fund that does not trade on an exchange.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=7>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield based on net asset value is calculated by dividing the current annualized
distribution per share by the net asset value.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The
table below summarizes the change in the Fund&#146;s NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net
Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.16</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.98</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.28)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.98</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5.54</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense Example for Continuously Offered Closed-End Funds</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Actual</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hypothetical</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beginning</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ending</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beginning</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ending</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses Paid</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses Paid</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">March 1, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">During the Period</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD align=center colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">March 1, 2009 August 31, 2009 During the Period</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate, Inc.</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,000</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,232.80</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.72</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,017.39</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.88</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses are equal to the annualized expense ratio of 1.55%, multiplied by
the average account value over the period, multiplied by 184/365 (to reflect the one-half year</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it
invests.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See &#147;Disclosure of Expenses for Continuously Offered Closed-End Funds&#148; on page 11 for further information on how expenses were
calculated.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">8 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_11"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc. (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is a continuously offered
closed-end fund that seeks high current income and such preservation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Fund returned (4.70)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">conservative positioning was a detractor given the market&#146;s strong returns. During the period, the Fund moved from a larger cash and short-term investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=29%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=13%></TD>
     <TD width=11%></TD>
     <TD width=9%></TD>
     <TD width=3%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March 26, 1999</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield based on Net Asset Value as of August 31, 2009 (&#36;7.76)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.44%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.022653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.266721</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Fund is a continuously offered closed-end fund that does not trade on an exchange.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=7>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield based on net asset value is calculated by dividing the current annualized
distribution per share by the net asset value.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The
table below summarizes the change in the Fund&#146;s NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net
Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.76</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.67</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.50)%</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.67 &#36;6.02</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense Example for Continuously Offered Closed-End Funds</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Actual</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hypothetical</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beginning</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ending</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beginning</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ending</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses Paid</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Account Value</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses Paid</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">March 1, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">During the Period</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">March 1, 2009 August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">During the Period</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate II, Inc.</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,000</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,233.70</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,016.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.54</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses are equal to the annualized expense ratio of 1.68%, multiplied by
the average account value over the period, multiplied by 184/365 (to reflect the one-half year</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it
invests.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See &#147;Disclosure of Expenses for Continuously Offered Closed-End Funds&#148; on page 11 for further information on how expenses were
calculated.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 9</FONT></P>

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



<!--$$/page=-->
<A name="page_12"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc., BlackRock Floating Rate Income Strategies Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock Limited Duration Income Trust (each a &#147;Fund&#148; and collec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tively, the &#147;Funds&#148;) may utilize leverage to seek to enhance the yield and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NAV. However, these objectives cannot be achieved in all interest rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">environments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may utilize leverage through borrowings or through entering into</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reverse repurchase agreements and dollar rolls. In general, the concept of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leveraging is based on the premise that the cost of assets to be obtained</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from leverage will be based on short-term interest rates, which normally will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be lower than the income earned by each Fund on its longer-term portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments. To the extent that the total assets of each Fund (including the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets obtained from leverage) are invested in higher-yielding portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, each Fund&#146;s shareholders will benefit from the incremental</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net income.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The interest earned on securities purchased with the proceeds from lever-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">age is paid to shareholders in the form of dividends, and the value of these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">portfolio holdings is reflected in the per share NAV. However, in order to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">benefit shareholders, the yield curve must be positively sloped; that is,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term interest rates must be lower than long-term interest rates. If the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">yield curve becomes negatively sloped, meaning short-term interest rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exceed long-term interest rates, income to shareholders will be lower than if</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund had not used leverage.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">To illustrate these concepts, assume a Fund&#146;s capitalization is &#36;100 million</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and it borrows for an additional &#36;30 million, creating a total value of &#36;130</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">million available for investment in long-term securities. If prevailing short-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">term interest rates are 3% and long-term interest rates are 6%, the yield</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">curve has a strongly positive slope. In this case, the Fund pays borrowing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">costs and interest expense on the &#36;30 million of borrowings based on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lower short-term interest rates. At the same time, the securities purchased</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the Fund with assets received from the borrowings earn the income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on long-term interest rates. In this case, the borrowing costs and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest expense of the borrowings is significantly lower than the income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned on the Fund&#146;s long-term investments, and therefore Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders are the beneficiaries of the incremental net income.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If short-term interest rates rise, narrowing the differential between short-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and long-term interest rates, the incremental net income pickup on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares will be reduced or eliminated completely. Furthermore, if prevailing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term interest rates rise above long-term interest rates of 6%, the yield</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">curve has a negative slope. In this case, the Fund pays interest expense on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the higher short-term interest rates whereas the Fund&#146;s total portfolio earns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income based on lower long-term interest rates.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Furthermore, the value of the Fund&#146;s portfolio investments generally varies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inversely with the direction of long-term interest rates, although other fac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tors can influence the value of portfolio investments. In contrast, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">redemption value of the Fund&#146;s borrowings do not fluctuate in relation to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates. As a result, changes in interest rates can influence the Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NAV positively or negatively in addition to the impact on Fund performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from leverage from borrowings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The use of leverage may enhance opportunities for increased income to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds and shareholders, but as described above, it also creates risks</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as short- or long-term interest rates fluctuate. Leverage also will generally</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cause greater changes in each Fund&#146;s NAV, market price and dividend rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than a comparable portfolio without leverage. If the income derived from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities purchased with assets received from leverage exceeds the cost</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of leverage, each Fund&#146;s net income will be greater than if leverage had</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not been used. Conversely, if the income from the securities purchased is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not sufficient to cover the cost of leverage, each Fund&#146;s net income will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than if leverage had not been used, and therefore the amount avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able for distribution to shareholders will be reduced. Each Fund may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">required to sell portfolio securities at inopportune times or at distressed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">values in order to comply with regulatory requirements applicable to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of leverage or as required by the terms of leverage instruments which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may cause the Funds to incur losses. The use of leverage may limit a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds&#146; ability to invest in certain types of securities or use certain types of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hedging strategies. Each Fund will incur expenses in connection with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of leverage, all of which are borne by the shareholders of each Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and may reduce income.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Investment Company Act of 1940, the Funds are permitted</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to borrow through their credit facility up to 33</FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif"><SUP> 1 </SUP>/<SUB> 3 </SUB></FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">% of their total managed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets. As of August 31, 2009, BlackRock Limited Duration Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">had no outstanding leverage and the other Funds had outstanding leverage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from borrowings as a percentage of their total managed assets as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=46%></TD>
     <TD width=53%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Percent of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leverage</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">10 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Derivative Financial Instruments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may invest in various derivative instruments, including swap</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements, financial futures contracts, foreign currency exchange contracts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and options, as specified in Note 2 of the Notes to Financial Statements,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which constitute forms of economic leverage. Such instruments are used to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">obtain exposure to a market without owning or taking physical custody of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities or to hedge market and/or interest rate risks. Such derivative</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instruments involve risks, including the imperfect correlation between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of a derivative instrument and the underlying asset, possible default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the counterparty to the transaction and illiquidity of the derivative instru-</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment. The Funds&#146; ability to successfully use a derivative instrument</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depends on the investment advisor&#146;s ability to accurately predict pertinent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market movements, which cannot be assured. The use of derivative instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments may result in losses greater than if they had not been used, may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require the Funds to sell or purchase portfolio securities at inopportune</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">times or for distressed values, may limit the amount of appreciation the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds can realize on an investment or may cause the Funds to hold a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">security that it might otherwise sell. The Funds&#146; investments in these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instruments are discussed in detail in the Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Expenses for Continuously Offered Closed-End Funds</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders of BlackRock Senior Floating Rate Fund, Inc. and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc. may incur the following charges:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) expenses related to transactions, including early withdrawal fees; and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) operating expenses, including administration fees, and other Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses. The examples on the previous pages (which are based on a hypo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">thetical investment of &#36;1,000 invested on March 1, 2009 and held through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009) are intended to assist shareholders both in calculating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses based on an investment in each Fund and in comparing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">these expenses with similar costs of investing in other mutual funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The tables provide information about actual account values and actual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses. In order to estimate the expenses a shareholder paid during</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the period covered by this report, shareholders can divide their account</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value by &#36;1,000 and then multiply the result by the number under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">heading entitled &#147;Expenses Paid During the Period.&#148;</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The tables also provide information about hypothetical account values and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hypothetical expenses based on each Fund&#146;s actual expense ratio and an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assumed rate of return of 5% per year before expenses. In order to assist</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders in comparing the ongoing expenses of investing in these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds and other funds, compare the 5% hypothetical example with the 5%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hypothetical examples that appear in other funds&#146; shareholder reports.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The expenses shown in the tables are intended to highlight shareholders&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ongoing costs only and do not reflect any transactional expenses, such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as early withdrawal fees. Therefore, the hypothetical examples are useful</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in comparing ongoing expenses only, and will not help shareholders deter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mine the relative total expenses of owning different funds. If these trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actional expenses were included, shareholder expenses would have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been higher.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 11</FONT></P>

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<A name="page_14"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=16%></TD>
     <TD width=12%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E*Trade Financial Corp. (a)</FONT>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">273,000 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">480,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">480,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., 8.25%, 5/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clean Harbors, Inc., 7.63%, 8/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">401,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Americas LLC, 7.63%, 5/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">277,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">278,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">556,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FCE Bank Plc:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 1/16/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">129,742</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 1/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192,462</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">238,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Corp., 3.88%, 6/15/13 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">693,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">931,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">440</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">448,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MGM Mirage, 11.13%, 11/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">259,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems, Inc., 4.88%, 1/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">383</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">344,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,165</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,159,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPM Holdings, Inc., 10.63%, 9/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">202,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cablevision Systems Corp., Series B, 8.00%, 4/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">725,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DIRECTV Holdings LLC, 8.38%, 3/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">666,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,392,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Holdings LLC, 11.50%, 7/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Levi Strauss &amp; Co., 8.63%, 4/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">616,094</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc., 7.75%, 5/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,455,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 7.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,416,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avio SpA:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.39%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">468</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">393,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2, 3.01%, 12/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">420,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawker Beechcraft Acquisition Co., LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LC Facility Deposit, 2.28%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,391</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26% &#150; 2.60%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">294,670</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,125,441</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=5%></TD>
     <TD width=14%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (BHL)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 3.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,172 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,854,027</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,301</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">995,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Corp. (a)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche Term Loan C, 9.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">908</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499,164</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequent Tranche Term Loan C, 9.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,836</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Goodyear Tire &amp; Rubber Co., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 4/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">691,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,091,783</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Automobiles &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Co., Term Loan, 3.28% &#150; 3.51%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">498</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">431,615</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Building Materials Corp. of America, Term Loan Advance,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.06%, 2/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">741</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">676,428</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials (Blitz 06-103 GmbH),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 2.74%, 12/04/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,076,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,753,258</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nuveen Investments, Inc., Term Loan, 3.49% &#150; 3.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/13/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">598</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485,499</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 7.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">813,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brenntag Holding GmbH &amp; Co. KG, Facility B2, 2.27%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">929,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cognis GmbH, Facility C, 2.62%, 9/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">847,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc., Tranche B Term Loan, 2.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">987</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">941,326</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Matrix Acquisition Corp. (fka MacDermid, Inc.), Tranche B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26%, 4/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,557</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,292,256</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan, 6.50%, 5/06/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,241,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.77%, 7/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Original Term Loan (First Lien), 3.52% &#150; 3.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,239</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,021,448</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc., Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">987</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">977,389</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,614,226</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ARAMARK Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LC Facility Letter of Credit, 0.22%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">111,797</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan, 2.47%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,881</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,759,753</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliance Laundry Systems LLC, Term Loan, 2.79% &#150; 4.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/27/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">737</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">706,447</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Inc., Term B Loan, 7.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kion Group GmbH (formerly Neggio Holdings 3 GmbH):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.51%, 12/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">317,188</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.76%, 12/29/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">317,188</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synagro Technologies, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26% &#150; 2.27%, 4/02/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">987</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">777,582</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp., Term B-2 Loan, 2.64% &#150; 2.65%, 10/24/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">209</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">198,498</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,689,703</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp., Initial Term Loan (First Lien), 2.37%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/29/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">960,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 3.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Americas LLC, Additional Term B Dollar Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 11/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487,887</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co., L.P., Term Loan B, 2.56%, 10/07/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,509</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graphic Packaging International, Inc., Incremental Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 3.08% &#150; 3.35%, 5/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,480</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,442,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit Kappa Acquisitions (JSG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C1 Term Loan Facility, 4.12% &#150; 4.87%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">662,379</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B1, 3.87% &#150; 4.73%, 12/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">665,768</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc., U.S. Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan Debtor in Possession, 10.00%, 1/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">720</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">726,993</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,422,511</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">12 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_15"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity
Credit Trust (BHL)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Laundry Corp., Delay Draw Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.28% &#150; 3.43%, 11/14/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,730</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,470,989</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 4.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCM Ireland Holdings Ltd. (Eircom):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.37%, 9/30/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,866</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.62%, 9/30/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,938</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawaiian Telcom Communications, Inc., Tranche C</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 5/30/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,972</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,932,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., Replacement Term Loan, 2.76%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">182,138</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Time Warner Telecom Holdings Inc., Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 1/07/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Finance SL SA, Euro Facility (Second Lien), 7.70%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/17/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,437,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,292,418</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Baldor Electric Co., Term Loan, 5.25%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493,214</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electronic Equipment, Instruments &amp;</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Components &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Flextronics International Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Closing Date Loan, 2.53% &#150; 2.85%, 10/1/2014</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">761</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">682,443</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 2.76%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">219</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,104</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">L-1 Identity Solutions Operating Co., Term Loan, 6.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">678</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">678,839</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Matinvest 2 SAS/Butterfly Wendel US, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Deutsche Connector):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-2 Facility, 2.97%, 6/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">886</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">496,037</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C-2 Facility 3.22%, 6/22/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">732</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,463,277</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc., Term B Loan, 2.68%, 5/04/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">513</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">478,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Volnay Acquisition Co., I (aka CGG) B1 Term Loan Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.93% &#150; 4.58%, 1/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">421</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">407,944</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">886,294</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 7/09/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,394,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">517,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Bolthouse Farms, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56%, 12/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">182,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,094,701</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 2.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co. Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.51%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,241</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">223</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,177</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">835,304</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,894</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,915,765</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,103,487</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 2.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bausch &amp; Lomb, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 3.51% &#150; 3.85%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/24/2015</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92,698</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Parent Term Loan, 3.85%, 4/24/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">386</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,232</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Dollar Term Loan, 3.26% &#150; 3.61%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/25/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,323</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,268,924</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Finance LLC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.26% &#150; 3.60%, 5/20/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 940,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Iasis Healthcare:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.26%, 3/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,037</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 2.26%, 3/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">347</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">326,645</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Line of Credit, 0.16%, 3/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,448</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,273,726</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 10.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical, Inc. (Chronic Care), Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.35%, 9/30/12 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">275</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">124,094</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.51% &#151; 2.62%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,233</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,011,726</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita Inc., Tranche B-1 Term Loan, 1.77% &#150; 2.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/05/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">767,666</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fresenius AG:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B1, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">712</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">715,118</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">430</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">431,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,667</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,423,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HealthSouth Corp., Term Loan, 2.52% &#150; 2.53%, 3/10/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,753</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,695,173</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">343</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">309,417</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbion, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan, 3.51%, 8/23/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">474</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414,358</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 3.51%, 8/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">474</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414,358</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vanguard Health Holding Co. II, LLC (Vanguard Health System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc.), Replacement Term Loan, 2.51%, 9/23/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">858</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">834,974</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,295,312</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Technology &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunquest Information Systems, Inc. (Misys Hospital Systems,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc.), Term Loan, 3.52% &#150; 3.74%, 10/13/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">491</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">447,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 3.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLB Worldwide Holdings, Inc. (Wembley, Inc.), First Priority</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 9/01/09 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc., Term B-2 Loan, 3.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,525</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,228,509</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penn National Gaming, Inc., Term Loan B, 2.03% &#150; 2.21%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/03/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">936</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910,054</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan (First Lien), 2.88%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">987</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">735,522</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VML US Finance LLC (aka Venetian Macau), Term B:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Project Loan, 6.10%, 5/25/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,908</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Project Loan, 6.10%, 5/27/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">291,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,880,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jarden Corp., Term Loan B3, 3.10%, 1/24/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,428</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,409,490</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,221</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,132,407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,541,897</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Products &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.28%, 4/24/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">341</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">311,733</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 6.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amadeus Global Travel Distribution SA, GmbH</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(WAM Acquisition):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 2.28%, 7/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">955</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">835,558</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C, 2.78%, 7/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">955</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">835,558</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,977</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,692,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.01% &#150; 3.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">741</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">616,994</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.01% &#150; 3.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,027</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">854,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.01% &#150; 3.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">986</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">819,922</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 13</FONT></P>

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



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<A name="page_16"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity
Credit Trust (BHL)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Solar Capital Corp.), New US Term Loan, 6.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 892,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.95% &#150; 4.09%, 2/28/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">226</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">218,615</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,765,787</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 6.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dynegy Holdings Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term LC Facility Term Loan, 4.02%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,925</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 4.02%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,176</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mirant North America, LLC, Term Loan, 2.01%, 1/03/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">677</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">646,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NRG Energy, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.50%, 2/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">154,241</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.01% &#150; 2.35%, 2/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,506,337</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC (TXU):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,226</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">379,036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,679</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,540,677</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,818,462</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp., Term Loan, 3.65% &#150; 3.88%, 12/03/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">842,978</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">736</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">676,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Internet &amp; Catalog Retail &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">236</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">233,672</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp., Term B Facility, 5.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/20/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">991</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000,531</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LN Acquisition Corp. (Lincoln Industrial):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan (First Lien), 2.83%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/11/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">227,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial U.S. Term Loan (First Lien), 2.78% &#150; 2.83%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/11/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">677</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">607,474</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar Financial Corp., Tranche A Term Loan, 2.31%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">299</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290,244</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar International Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit-Linked Deposit, 3.36% &#150; 3.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">533</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">496,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance, 3.51%, 1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,467</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,364,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oshkosh Truck Corp., Term Loan B, 6.60% &#150; 6.64%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/06/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">504</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501,171</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,486,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 28.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AlixPartners, LLP, Tranche C Term Loan, 2.28% &#150; 2.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alpha Topco Ltd. (Formula One), Facility B2, 2.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">938</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">789,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bresnan Communications, LLC, Additional Term Loan B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 2.51% &#150; 2.61%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">448</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">429,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings Inc. (Cablevision), Incremental B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02% &#150; 2.07%, 3/29/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,719</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,662,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalina Marketing Corp., Initial Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">797</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">748,603</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,824,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC, Term Loan, 2.27%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,463</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,326,430</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Operating, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Replacement Term Loan, 6.25%, 3/06/14 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,284</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,191,296</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B1, 7.94%, 3/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,499,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">672</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,729</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gray Television, Inc., Term Loan B, 3.78%, 12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">480</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">346,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co., Ltd., Tranche A Term Loan, 5.26%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,011</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,556,311</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanley-Wood, LLC (FSC Acquisition), Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52% &#150; 2.54%, 3/08/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208,715</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hargray Acquisition Co./DPC Acquisition LLC/HCP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition LLC, Term Loan (First Lien), 2.72%, 6/27/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,974</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harland Clarke Holdings Corp. (fka Clarke American Corp.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.76% &#150; 3.10%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">525</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">428,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan, 2.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,143</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intelsat Corp. (fka PanAmSat Corp.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-2-B Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">624,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-2-C Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">624,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2-A Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">624,539</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Advertising Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 5.50%, 9/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan E, 5.50%, 3/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">741</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">734,145</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 3/06/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">818,408</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C1, 3.78%, 3/04/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">818,408</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local TV Finance, LLC Term Loan, 2.27%, 5/07/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">964</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">658,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCC Iowa LLC (Mediacom Broadband Group):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche D-1 Term Loan, 2.01%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">351,197</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche E Term Loan, 6.50%, 11/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">823</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">823,951</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NTL Cable Plc B-7 Facility Term Loan, 5.39%, 3/09/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">469</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">709,198</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NV Broadcasting, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, Debtor in Possession, 13.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">239</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">236,238</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 5.25%, 11/01/13 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,639</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409,710</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fixed Rate Term Loan, 9.75%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Term Loan, 6.01%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielson Finance LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A Dollar Term Loan, 2.28%, 8/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">763</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">709,903</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B Dollar Term Loan, 4.03%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,592</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,492,607</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Parkin Broadcasting, LLC Term Loan, 5.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/13 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">336</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,042</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment), Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 2.73%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,751</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,455,341</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,395</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,402,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tribune Co., Debtor in Possession Term Loan, 9.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">351,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UPC Financing Partnership, Facility U, 4.54%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,093,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media Investment Holdings Ltd. (fka NTL):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-1 Facility Term Loan, 3.89%, 7/30/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">206</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">308,698</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Facility, 3.62%, 7/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">165</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">236,378</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 5.39%, 3/09/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">281</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424,260</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color Press Inc. and World Color (USA) Corp. (fka</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quebecor World Inc.), Advance, 9.00%, 7/21/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">645,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,599,366</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essar Steel Algoma Inc. (fka Algoma Steel Inc.), Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 2.77%, 6/20/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">990</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">890,909</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">14 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_17"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity
Credit Trust (BHL)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=12%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Lien Term Loan B, 3.13%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">407,773</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.48%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460,313</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multiline Retail &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar General Corp., Tranche B-1 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.01% &#150; 3.24%, 7/07/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,458,958</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC, Initial Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">352</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,806</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vulcan Energy Corp. (fka Plains Resources Inc.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B3 Loan, 5.50%, 8/12/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">816,931</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC, Term B Loan, 2.34% &#150; 2.65%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,291</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,213,236</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp., Term Loan, 4.06%, 12/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,389</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,286,169</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,499,405</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Personal Products &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Safety Razor Co., LLC Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.52%, 1/30/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">975,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott Co., Inc., Tranche B Acquisition Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26% &#150; 2.60%, 1/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">482</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">478,611</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott Corp., Tranche C Acquisition Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26%, 1/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">216</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">214,523</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">693,134</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Professional Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Booz Allen Hamilton Inc., Tranche B Term Loan, 4.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/31/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">993</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">992,503</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adesa, Inc., (KAR Holdings, Inc.), Initial Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52%, 10/20/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52% &#150; 2.85%, 9/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">552</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">507,469</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">882,802</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanesbrands Inc., Term B Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.02% &#150; 5.25%, 9/05/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel International Finance Ltd., Tranche A, 3.13%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,116,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetroPCS Wireless, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56% &#150; 2.75%, 11/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,272</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,195,985</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ntelos Inc., Term B Advance, 5.75%, 7/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">498,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,810,985</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 116.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">131,470,515</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;146,223,408*) &#151; 124.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140,367,876</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (24.4)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,505,826)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;112,862,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;146,223,408</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,824,269</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,679,801)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (5,855,532)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=11%></TD>
     <TD width=17%></TD>
     <TD width=15%></TD>
     <TD width=16%></TD>
     <TD width=17%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,279</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash Sweep Series</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(2,365,561)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13,793</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund&#146;s industry classifications refer to any</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">one or more of the industry sub-classifications used by one or more widely recog-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nized market indexes or ratings group indexes, and/or as defined by Fund manage-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment. This definition may not apply for purposes of this report, which may combine</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such industry sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000 USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,434</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/01/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 9,015,715 EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,450,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (231,252)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 2,682,215 GBP</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,641,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/28/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,965</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (220,287)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Currency Abbreviations:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euro</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Pound</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Dollar</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Accounting Standards Board Statement of Financial Accounting Standards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No. 157, &#147;Fair Value Measurements&#148; clarifies the definition of fair value, establishes</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a framework for measuring fair values and requires additional disclosures about the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair value</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices
for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical or</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are not active, inputs other than quoted</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prices that are observable for the assets or liabilities (such as interest rates, yield</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">curves, volatilities, prepayment speeds, loss severities, credit risks and default</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s policy regarding valuation of investments and other significant accounting poli-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 15</FONT></P>

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



<!--$$/page=-->
<A name="page_18"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity
Credit Trust (BHL)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=56%></TD>
     <TD width=10%></TD>
     <TD width=12%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 480,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,416,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,975,159</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">115,392,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,495,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;140,367,876</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,965</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (231,252)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60,517</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,482</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (231,252)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are foreign currency exchange
contracts</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and unfunded loan commitments, which are valued at the unrealized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">appreciation/depreciation on the instrument.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B></TD>
</TR>
<TR>
	<TD colspan=4><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,841,355</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(418,772)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,001,736)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(981,612)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,056,121</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,495,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized
appreciation/depreciation</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the Statements of Operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of other financial instruments for unobservable</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B></TD>
</TR>
<TR>
	<TD colspan=4><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 60,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 60,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are unfunded loan commitments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">16 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_19"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=17%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Street Referenced Linked Notes 2000-1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ltd. Series 2005-8A Class D, 15.13%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/15/41 (a)(b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 1,350</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 528,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Asset-Backed Securities &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">528,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Masonite Worldwide Holdings (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,955</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">847,630</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E*Trade Financial Corp. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">248,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,613</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">403</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Medis Technologies Ltd. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">176,126</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,196</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Buffets Restaurants Holdings, Inc. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">688</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sirius XM Radio, Inc. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">435,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292,973</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euramax International (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">467</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,026</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">311,678</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd. (b)(c)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">349,782</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,215</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">953,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TiVo, Inc. (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">206,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 2.6%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,791,770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Air Lines, Inc., 12.75%, 7/15/12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">288,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., 11.00%, 11/01/15 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Goodyear Tire &amp; Rubber Co., 5.01%, 12/01/09 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,992,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lear Corp., 8.75%, 12/01/16 (c)(d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">137,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,186,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPG International I, Inc., 7.87%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,787,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials, Inc. Series WI,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.75%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ply Gem Industries, Inc., 11.75%, 6/15/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">334,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,381,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E*Trade Financial Corp. (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.50%, 11/30/17 (e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140,738</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.16%, 8/31/19 (f)(g)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">756,976</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">724</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">304,080</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">301</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72,335</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 14.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/15/18 (b)(e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,083</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,328,212</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Pacific Corp., 9.00%, 2/01/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">440</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 397,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc., Subordinate Note (f):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien, 10.00%, 1/29/19 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">894</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">894,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Third Lien, 5.00%, 1/29/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">279</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">139,683</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,430,783</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Banks &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Glitnir Banki HF (b)(c)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.15%, 4/20/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,837</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.38%, 9/25/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,337</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series EMTN, 3.00%, 6/30/10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,878</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71,052</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clean Harbors, Inc., 7.63%, 8/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">401,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">285</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">297,824</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp., 11.00%, 10/15/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">985</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">908,662</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,607,486</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction Materials &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nortek, Inc., 10.00%, 12/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,570</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,460,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Consumer Finance &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Credit Co. LLC, 3.26%, 1/13/12 (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">815</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">678,487</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 4.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berry Plastics Holding Corp., 4.50%, 9/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,235</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,609,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Americas LLC, 7.63%, 5/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208,425</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graphic Packaging International, Inc., 9.50%, 6/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">420</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">430,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Packaging Dynamics Finance Corp., 10.00%, 5/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,570</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">502,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit Kappa Funding Plc, 7.75%, 4/01/15 (h)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">810,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solo Cup Co., 10.50%, 11/01/13 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wise Metals Group LLC, 10.25%, 5/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,347,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,044,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 5.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FCE Bank Plc, 7.125%, 1/16/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,113,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GMAC LLC (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 3/02/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">187,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.88%, 9/15/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">276,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.88%, 8/28/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,380</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,131,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.00%, 11/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,457,575</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">812,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">476,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,288,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Duane Reade, Inc., 11.75%, 8/01/15 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">340</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">346,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tyson Foods, Inc., 10.50%, 3/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">334,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">681,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc. (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 12/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">530</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 12/15/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,389</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">972,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Little Traverse Bay Bands of Odawa Indians, 10.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/15/14 (b)(c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">352,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MGM Mirage, 11.125%, 11/15/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">390</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">422,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shingle Springs Tribal Gaming Authority, 9.38%, 6/15/15 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,450</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 17</FONT></P>

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



<!--$$/page=-->
<A name="page_20"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income
Strategies Fund, Inc. (DVF)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Snoqualmie Entertainment Authority, 4.68%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/01/14 (a)(b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">305</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 149,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Travelport LLC, 4.986%, 9/01/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">810</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">587,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tropicana Entertainment LLC Series WI, 9.63%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tunica-Biloxi Gaming Authority, 9.00%, 11/15/15 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">645</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">574,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,503,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Standard Pacific Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 4/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 8/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley-Martin Communities LLC, 9.75%, 8/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">306,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">781,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliance Data Systems Corp., 1.75%, 8/01/13 (f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">370</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">329,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.88%, 9/24/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">218,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.25%, 3/31/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems, Inc., 4.88%, 1/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">549</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,087,325</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 2.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AES Eastern Energy LP Series 99-B, 9.67%, 1/02/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">258,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">497,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dynegy Holdings, Inc., 8.38%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">526,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Energy Future Holdings Corp., 11.25%, 11/01/17 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,060</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">606,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NRG Energy, Inc., 8.50%, 6/15/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">243,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co. LLC, 10.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/16 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">845</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">468,895</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,600,763</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp. (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.75%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,530</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">963,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.50%, 12/01/15 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,278</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190,476</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,154,376</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USI Holdings Corp., 4.32%, 11/15/14 (a)(b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">490</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leisure Equipment &amp; Products &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brunswick Corp., 11.25%, 11/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">565</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">591,837</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPM Holdings, Inc., 10.63%, 9/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">202,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ESCO Corp., 4.50%, 12/15/13 (a)(b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">920</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">821,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RBS Global, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.50%, 8/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">183,080</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.88%, 9/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">405,262</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Titan International, Inc., 8.00%, 1/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">442,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,054,192</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Marine &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navios Maritime Holdings, Inc., 9.50%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">123,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 3.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group, Inc., 10.13%, 10/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">320</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings, Inc., 8.50%, 4/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">182,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canadian Satellite Radio Holdings, Inc., 12.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,035,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local Insight Regatta Holdings, Inc., 11.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">832</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">316,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TL Acquisitions, Inc., 10.50%, 1/15/15 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,570</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,428,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media, Inc., 6.50%, 11/15/16 (b)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">906,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,186,810</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aleris International, Inc. (c)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.00%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">370</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 925</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 12/15/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RathGibson, Inc., 11.25%, 2/15/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,390</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ryerson, Inc., 7.86%, 11/01/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,075</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">913,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,416,325</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 3.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlas Energy Operating Co., LLC, 12.13%, 8/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">448,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlas Energy Resources LLC, 10.75%, 2/01/18 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">155</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">156,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chesapeake Energy Corp., 9.50%, 2/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">464,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Denbury Resources, Inc., 9.75%, 3/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,210,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forest Oil Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.50%, 2/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">643,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 6/15/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">188,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SandRidge Energy, Inc., 4.22%, 4/01/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">830,368</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,940,968</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 5.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,689</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,065,996</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clearwater Paper Corp., 10.63%, 6/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203,537</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.73%, 5/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,282,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 5/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,820</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">987,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Holdings LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.50%, 7/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">156,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 4.23%, 8/01/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,240,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,936,183</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,260,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Management &amp; Development &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realogy Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 4/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">410</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">243,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.38%, 4/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,385</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">560,925</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">804,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Semiconductors &amp; Semiconductor Equipment &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avago Technologies Finance Pte. Ltd., 5.86%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Spansion, Inc., 3.79%, 6/01/13 (b)(c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,410</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,251,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,627,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BMS Holdings, Inc., 8.35%, 2/15/12 (a)(b)(e)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">466</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,489</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., 6.40%, 3/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Michaels Stores, Inc., 11.38%, 11/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">782,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Auto Group, Inc., 7.75%, 12/15/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">355</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">312,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,222,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCM Ireland Preferred Equity Ltd., 8.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/15/17 (b)(e)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">302</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,579</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc., 7.75%, 5/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">970,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Castle International Corp., 9.00%, 1/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel Group Ltd. (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.88%, 1/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,070</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">954,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.13%, 1/15/15 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,129</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,876,181</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">iPCS, Inc., 2.61%, 5/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">325</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,474,235</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 57.7%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,137,098</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">18 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_21"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income
Strategies Fund, Inc. (DVF)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Airways Group, Inc., Loan, 2.76%, 3/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">730</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 393,105</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 2.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,930</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,647,680</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">874</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">668,955</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Corp. (c)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche C Loan (Debtor in Possession),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">908</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499,164</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequent Tranche C Loan (Debtor in Possession),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,836</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intermet Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit, 0.16%, 11/09/10 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85,522</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 5.65%, 11/09/10 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,569</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1st Lien Credit Facility, 5.65%, 11/08/10 (c)(d)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">115</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,978</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1st Lien Credit Facility, 5.65%, 11/08/10 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">147</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,446</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,039,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beverages &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Culligan International Co., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.28%, 4/24/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179,201</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 3.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">444</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">451,874</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Edwards (Cayman Islands II) Ltd., Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 2.85%, 5/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">276</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">171,303</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc., Tranche B Term Loan, 2.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">242</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230,610</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan B, 6.50%, 5/06/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">633,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.77%, 7/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,375,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 3.52% &#151; 3.75%, 7/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">407,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc. Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">990</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">979,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,250,188</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Term B Loan, 7.00%, 4/04/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">401,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp., Second Lien, Term Loan, 6.26% &#150; 6.37%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/28/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">466,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co., LP, B Term Loan, 2.56%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/07/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,509</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container U.S. Term Loan Debtor in</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Possession, 10.00%, 7/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">440,639</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">877,148</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Corp., Term Loan, 3.28% &#150; 3.43%, 11/14/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,728</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,468,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawaiian Telcom Communications, Inc., Tranche C</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 5/30/14 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,518</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">921,245</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">324</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318,003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paetec Holdings Corp., Incremental Term Loan, 2.76%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,507</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,318,755</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generac Acquisition Corp., Term Loan (First Lien), 2.78%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/10/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414,087</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc., Term B Loan, 2.68%, 5/04/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">571</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">532,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MEG Energy Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.60%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">457,990</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 2.60%, 4/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">484</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,439,588</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">McJunkin Corp., Term Loan, 3.51%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 475,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">517,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">992,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co., Inc. :</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.51%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151,845</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">562</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">565,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,468</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,496,111</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,300,608</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Dollar Term Loan, 3.26% &#150; 3.61%, 3/25/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">647,648</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Finance LLC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.26%, 5/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">739</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">705,506</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,489,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 2.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical, Inc. (Chronic Care):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Debtor in Possession), 11.00%, 11/14/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 4.35%, 9/30/12 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">525</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">236,906</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,947</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.51% &#150; 2.62%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">585</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">544,964</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita, Inc., Tranche B-1 Term Loan, 1.77% &#150; 2.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/05/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">275</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">263,885</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fresenius AG:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,441</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,039</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A-1 Term Loan, 2.10%, 11/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,491,174</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 2.85%, 11/18/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">387</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">364,407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,164,072</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Golden Nugget, Inc., Second Lien Term Loan, 3.52%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Green Valley Ranch Gaming, LLC, Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.88%, 8/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc., Term B-2 Loan, 3.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">438</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">352,521</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lake at Las Vegas Joint Venture/LLV-1, LLC.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Loan Credit-Linked Deposit Account,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.35%, 12/12/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 14.35% &#150; 15.00%, 12/22/12 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,215</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,305</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan (Second Lien), 5.98%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/26/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VML US Finance LLC (aka Venetian Macau), Term B:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Project Loan, 6.10%, 5/25/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Project Loan, 6.10%, 5/25/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">548</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,585,988</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Residential Services LLC, Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 12.00%, 4/17/15 (e)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,020</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">889,871</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audio Visual Services Group Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 7.10%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,592</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan (First Lien), 2.85%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">465,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">846,260</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 19</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=right>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF)</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.01% &#150; 3.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,134</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,775,203</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.01% &#150; 3.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,816</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc. (Solar Capital Corp.), Tranche B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan, 3.95% &#150; 4.09%, 2/28/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">325</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313,181</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,542,052</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC (TXU):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,102</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">837,669</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">734</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">558,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,395,808</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp., Term Loan, 3.65% &#150; 3.88%, 12/03/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">397</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">338,590</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">491</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">451,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Internet &amp; Catalog Retail &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">472</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">467,344</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp., Term B Facility, 5.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/20/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">876</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">884,892</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 2.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar International Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit-Linked Deposit, 3.35% &#150; 3.36%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">744,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance, 3.51%, 1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,046,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,790,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 16.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group Holdings, Inc., Loan, 8.27%, 3/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,205</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,054,198</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AlixPartners, LLP, Tranche C Term Loan, 2.28% &#150; 2.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/12/13 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,195</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cebridge Connections, Second Lien Term Loan, 4.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/05/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,802,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">960,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC, Tranche A Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 2.27% &#150; 4.25%, 11/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">789</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">745,163</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Term Loan B1, 0%, 3/25/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,515</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,514,242</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EB Sports Corp., Loan, 7.57%, 5/01/12 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">890</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489,262</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ellis Communications KDOC, LLC Loan, 10.00%, 12/30/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,939</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">543,006</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co. Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mezzanine, 17.50%, 11/14/14 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,221</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">933,183</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan, 5.26%, 6/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,536</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,188,521</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan, 2.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">453,286</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Media Corp., Series E Incremental Loan, 5.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">247</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">244,715</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lavena Holding 3 GmbH (Prosiebensat.1 Media AG)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 6/30/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediacom Illinois, LLC (fka Mediacom Communications,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC), Tranche D Term Loan, 4.50%, 3/31/17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">498,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,035,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A Dollar Term Loan, 2.28%, 8/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">603</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">561,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B Dollar Term Loan, 4.03%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,260</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,180,367</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penton Media, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 5.49%, 2/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.51% &#150; 2.73%, 2/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">654,925</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment) Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 2.73%, 7/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">325</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270,156</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">496</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499,228</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=16%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Pan Europe Communications, Term Loan, 3.76%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 982,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media Investment Holdings Ltd., C Facility, 3.62%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/17/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP 145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">207,726</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color Press Inc. and World Color (USA) Corp.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(fka Quebecor World Inc.), Advance, 9.00%, 6/30/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">198,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,991,624</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euramax International, Inc., Domestic Term Loan:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.00%, 6/29/13 (e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 626</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">269,062</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Cash Pay), 10.00%, 6/29/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">643</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">276,616</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RathGibson Inc., Loan (Debtor in Possession),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50% &#150; 10.75%, 2/10/10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,148</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,147,507</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,693,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.48%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,302</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Advance (First Lien), 3.13%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">576</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">530,104</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">598,406</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multiline Retail &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar General Corp., Tranche B-2 Term Loan, 3.01%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/07/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240,243</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC, Initial Advance Loan, 6.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">288</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265,259</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ScorpionDrilling Limited, Loan (Second Lien), 8.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/08/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,369,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turbo Beta Ltd. Dollar Facility, 14.50%, 3/15/18 (e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,738</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,216,786</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vulcan Energy Corp. (fka Plains Resources Inc), Term B3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 5.50%, 8/12/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">739,688</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,591,233</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC, Term B Loan, 2.34% &#150; 2.65%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/20/12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">835</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">806,982</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Acquisition Date Term Loan, 2.26%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/18/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">369</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">366,804</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C Acquisition Date Term Loan, 2.26%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/18/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,641</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495,445</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aspect Software, Inc. Loan (Second Lien), 7.31%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/11/12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,512,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 58.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,469,878</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beneficial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Interests (i)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JG Wentworth LLC Preferred Equity Interests</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 271</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">228,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Buffets, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Other Interests &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">228,602</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 16.75% (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Preferred Stocks &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,240</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">20 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<A name="page_23"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income
Strategies Fund, Inc. (DVF)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=60%></TD>
     <TD width=3%></TD>
     <TD width=17%></TD>
     <TD width=1%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Warrants (j)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Buffets Restaurants Holdings, Inc. (expires 4/29/14)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">304</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turbo Cayman Ltd. (No Expiration)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Warrants &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;177,149,788) &#151; 119.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,167,846</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund, 0.22% (k)(l)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,578</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,578</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;2,371,578) &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,578</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Purchased</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco LLC, expiring December</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2019 at USD 942.86, Broker Goldman Sachs &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Options Purchased (Cost &#151; &#36;12,711) &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;179,534,077*) &#151; 121.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130,552,424</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (21.2)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,996,029)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;107,556,395</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;180,146,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,424,595</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(53,018,491)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (49,593,896)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Represents a payment-in-kind security which may pay interest/dividends in addi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional par/shares.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Convertible security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents a zero-coupon bond. Rate shown reflects the current yield as of report</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) All, or a portion of security, pledged as collateral in connection with swaps.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Other interests represent beneficial interest in liquidation trusts and other reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zation entities and are non-income producing.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Warrants entitle the Fund to purchase a predetermined number of shares of com-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mon stock and are non-income producing. The purchase price and number of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares are subject to adjustment under certain conditions until the expiration date.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(k) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,371,578</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash Sweep Series</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(5,592,405)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,999</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(l) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=4%></TD>
     <TD width=6%></TD>
     <TD width=1%></TD>
     <TD width=15%></TD>
     <TD width=3%></TD>
     <TD width=3%></TD>
     <TD width=1%></TD>
     <TD width=13%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">industry sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date (Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 195,257 EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/15/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (5,452)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 397,270 EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,149)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 3,161,838</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,264,500</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche Bank AG 9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,636)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">326,927</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CAD</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">355,000</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Barclays Bank Plc 10/28/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,622</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP 165,000 USD</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">269,693</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/28/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,102)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (92,717)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate swaps outstanding as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=5 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty Expiration</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.82% (m) 3-month</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LIBOR</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chase Bank NA</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2013 USD 20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,751,189)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(m) Pays fixed rate and receives floating rate.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issues &#151; buy protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000) (Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Host Hotel &amp;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goldman Sachs</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Resorts LP</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank USA</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March 2014</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 1,275 &#36; (177,446)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Masco</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corp.</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chase Bank NA</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March 2014 USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55,080)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mohawk</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Industries,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc.</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.45%</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chase Bank NA</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March 2014 USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(49,615)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brunswick</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goldman Sachs September</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corp.</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank USA</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">561</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Standard</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pacific</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Suisse</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">September</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corp.</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,739</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (270,841)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on traded index &#151; sold protection outstanding as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Receive</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Index</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=5 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party Expiration Rating</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aces High</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Morgan</FONT>&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 6,736</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(2,024,770)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield Index</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley</FONT>&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2010</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Services, Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=13>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issues &#151; sold protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Receive</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=5 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party Expiration Rating</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BAA</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A&#150;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (96,206)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ferrovial</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank AG</FONT>&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2012</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Junior Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using Standard &amp; Poor&#146;s weighted average ratings of the underlying securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the index.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The maximum potential amount the Fund may pay should a negative credit</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">event take place under the terms of the agreement. See Note 2 of the Notes to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using Standard &amp; Poor&#146;s rating of the issuer.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 21</FONT></P>

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



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<A name="page_24"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income
Strategies Fund, Inc. (DVF)</FONT></B></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Currency Abbreviations:</FONT><BR>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">CAD </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canadian Dollar</FONT><BR>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">EUR </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euro</FONT><BR>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">GBP </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Pound</FONT><BR>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">USD </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Dollar</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Fund adopted Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments,&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for similar assets or liabilities in markets that are active, quoted prices for identi-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cal or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=46%></TD>
     <TD width=31%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,283,119</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,578</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,654,697</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,215</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,103,415</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,916,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,535,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">528,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,436</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,033,683</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,553,048</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">228,602</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warrants</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,349,027</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;130,539,424</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,922</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (4,249,645)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,010</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 64,932</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (4,249,645)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are swaps, foreign currency exchange
contracts,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">options purchased and unfunded loan commitments. Swaps, foreign currency</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange contracts and unfunded loan commitments are valued at the unreal-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ized appreciation/depreciation on the instrument and options purchased are</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown at market value.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">22 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_25"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income
Strategies Fund, Inc. (DVF)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=36%></TD>
     <TD width=8%></TD>
     <TD width=1%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset-Backed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Stocks</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interests</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Warrants</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,146,004</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,146,004</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,893,500)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,893,500)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 466,236</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,033</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (50,717)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,373,735</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,794,287</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,472,926)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,472,926)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,019</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">403</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,084,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,399,735</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 228,602</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,775,162</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 528,255</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,436</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,033,683</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,553,048</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 228,602</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;27,349,027</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized appreciation/depreciation on the
Statements of Operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of other financial instruments for unobservable inputs</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,010</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,010</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are unfunded loan commitments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 23</FONT></P>

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



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<A name="page_26"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Masonite Worldwide Holdings (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,758</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,365,511</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GEO Specialty Chemicals, Inc. (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,117</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">430</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,143</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Medis Technologies Ltd. (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71,654</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,421</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trico Marine Services, Inc. (a)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119,185</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">810,458</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co., Ltd. (a)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,289</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,699</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co., Ltd. (a)(b)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,951</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">220,043</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Western Forest Products, Inc. (a)(b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,448</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,056</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,798</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,638,331</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Goodyear Tire &amp; Rubber Co., 5.01%, 12/01/09 (c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,483,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPG International I, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.87%, 7/01/12 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,502,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 7/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,644,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials, Inc., Series WI,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.75%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,634,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,168</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">490,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">116,671</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (b)(d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,990</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">694,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GEO Specialty Chemicals, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 3/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">844</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">548,704</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 3/31/15 (b)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">852</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">553,506</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc., Third Lien Subordinate Note,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/29/19 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">442</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">220,823</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,323,033</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clean Harbors, Inc., 7.63%, 8/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">802,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction Materials &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nortek, Inc., 10.00%, 12/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,540</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,362,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clondalkin Acquisition BV, 2.63%, 12/15/13 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,200,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown European Holdings SA, 6.25%, 9/01/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,504</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Owens Brockway Glass Container, Inc., 6.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">198,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Packaging Dynamics Finance Corp., 10.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,350</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">752,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,172,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FCE Bank Plc, 7.13%, 1/16/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,189,667</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (b)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,095,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Corp., 3.88%, 6/15/13 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,237,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,332,875</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AmeriQual Group LLC, 9.50%, 4/01/12 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 162,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Duane Reade, Inc., 11.75%, 8/01/15 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">191,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">354,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">918,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC, 10.88%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,320</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,267,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 2.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Real Estate Partners LP, 7.13%, 2/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc., 10.00%, 12/15/18 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">413</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">289,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Little Traverse Bay Bands of Odawa Indians, 10.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/15/14 (a)(b)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,565</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">688,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,727,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.88%, 9/24/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,020</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">872,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.25%, 3/31/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,782,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,109,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC, 10.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,005</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,328,312</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,437,712</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp. (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.75%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">403,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.50%, 12/01/15 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,700</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">888,231</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,291,431</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPM Holdings, Inc., 10.63%, 9/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunstate Equipment Co., LLC, 10.50%, 4/01/13 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,005,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.50%, 4/15/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">420</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">426,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 7.63%, 4/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,025,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cablevision Systems Corp. Series B, 8.00%, 4/15/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">975</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">996,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,244</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">472,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,920,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FMG Finance Property Ltd., 4.36%, 9/01/11 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ryerson, Inc., 7.86%, 11/01/14 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">765,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,030,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SandRidge Energy, Inc., 4.22%, 4/01/14 (c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,328,589</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co., Ltd., 11.00%, 7/29/15 (b)(d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,176</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">466,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 5/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,085,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.73%, 5/01/12 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,925</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,677,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Holdings LLC, Series B, 4.23%, 8/01/14 (c)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,240,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,469,072</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (c)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">999,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Elan Finance Plc, 4.44%, 11/15/11 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,350,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,349,600</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">24 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_27"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income
Strategies Fund, Inc. (FRA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Semiconductors &amp; Semiconductor Equipment &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avago Technologies Finance Pte. Ltd., 5.86%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/01/13 (c)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 846,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Spansion, Inc., 3.79%, 6/01/13 (a)(b)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,870</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,547,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,393,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., 6.40%, 3/15/14 (c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc., 7.75%, 5/15/16 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,425,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Castle International Corp., 9.00%, 1/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel Group Ltd., 9.13%, 1/15/15 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">278</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">244,987</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">iPCS, Inc., 2.61%, 5/01/13 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,230,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,165,187</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 28.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,689,604</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avio SpA:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar Mezzanine Term Loan, 4.26%, 12/13/16 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,123</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">955,402</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.39%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,661</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,395,506</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2, 3.01%, 12/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,771</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,487,671</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawker Beechcraft Acquisition Co., LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit Facility Deposit, 2.28%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">137</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,306</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26% &#150; 2.60%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,325</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,733,406</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">IAP Worldwide Services, Inc., Term Loan (First-Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 12/30/12 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">175</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,292</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,800,583</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delta Air Lines, Inc., Credit- Linked Deposit Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.11% &#150; 2.28%, 4/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,093,823</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Airways Group, Inc., Loan, 2.76%, 3/21/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">786,210</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,880,033</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 3.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,119,199</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,551</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,187,394</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Corp. (a)(f):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche Term Loan C, 10.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,269</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequent Tranche Term Loan C, 9.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GPX International Tire Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 12.00%, 4/11/12 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 10.25%, 3/30/12 (a)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,280</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384,097</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,072,316</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beverages &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Culligan International Co., Loan (Second Lien), 5.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/24/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179,201</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Building Materials Corp. of America, Term Loan Advance,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.06%, 2/22/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,968</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,795,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PGT Industries, Inc., Tranche A-2 Term Loan, 7.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/14/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,752</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,086,352</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,881,852</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RiskMetrics Group Holdings, LLC, Term B Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.60%, 1/10/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,449</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,407,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 5.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland Inc., Term B Borrowing, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,177</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,197,465</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.85%, 5/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">490</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">303,800</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc., Tranche B Term Loan, 2.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/26/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,401,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan, 6.50%, 5/06/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,483,688</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.), Original Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (First Lien), 3.52% &#150; 3.75%, 7/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,960</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,263,701</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc., Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,462</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,416,704</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,066,758</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Inc., Term B Loan, 7.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">751,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John Maneely Co., Term Loan, 3.52% &#150; 3.76%, 12/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">846</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">663,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp., Term B-2 Loan, 2.64% &#150; 2.65%, 10/24/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">533</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,807</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,920,745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan (First Lien), 2.37%, 5/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">419</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">401,943</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 6.26% &#150; 6.37%, 11/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">466,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">868,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction Materials &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Headwaters Inc., Term Loan B1 (First Lien), 9.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/30/11</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,012</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">979,576</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B Term Loan, 2.56%, 10/07/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105,644</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C, 6.75%, 4/27/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,087</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,084,386</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graphic Packaging International, Inc., Incremental Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 3.08% &#150; 3.35%, 5/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,970</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,920,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc., U.S. Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Debtor in Possession, 10.00%, 1/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,155</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,167,020</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,277,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributors &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Keystone Automotive Operations, Inc., Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.77% &#150; 5.75%, 1/12/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,419</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">773,397</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Service Corp., Term Loan, 3.28% &#150; 3.43%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/14/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,715</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,308,208</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">774</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">758,381</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., Incremental Term Loan, 2.76%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">159,006</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Finance SL SA Euro Facility (Second Lien), 7.70%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/17/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,437,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,355,297</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Baldor Electric Co., Term Loan, 5.25%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">986,429</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generac Acquisition Corp., Lien Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.78%, 11/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">548</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">459,740</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,446,169</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc., Term B Loan, 2.68%, 5/04/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,118,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MEG Energy Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.60%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">986</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">915,980</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 2.60%, 4/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">968</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,932,946</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 2.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 7/09/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,184,567</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DSW Holdings, Inc., Loan, 2.52%, 10/27/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">919</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">827,500</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 25</FONT></P>

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



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<A name="page_28"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income
Strategies Fund, Inc. (FRA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">McJunkin Corp., Term Loan, 3.51%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 475,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,035,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">364,690</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,886,789</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 3.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.51%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">390</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">392,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">682</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">686,302</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,541</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,557,222</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%, 10/06/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,925</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,968,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,604,942</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Dollar Term Loan, 3.26% &#150; 3.61%, 3/25/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,158,828</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Finance LLC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.26% &#150; 3.60%, 5/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">940,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,303,603</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 6.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical, Inc. (Chronic Care):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan Debtor in Possession, 11.00%, 11/14/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 4.35%, 9/30/12 (a)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">338,437</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">206,215</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,319</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,024,123</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita, Inc., Tranche B-1 Term Loan, 1.77% &#150; 2.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/05/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">959,583</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fresenius AG:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B1, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,478</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,485,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">903</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">907,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A-1 Term Loan, 2.10%, 11/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,512</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,278,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 2.85%, 11/18/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,098</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,915,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vanguard Health Holding Co., II, LLC (Vanguard Health</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">System, Inc.), Replacement Term Loan, 2.51%, 9/23/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,769</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,721,591</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,868,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 2.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Golden Nugget, Inc., Second Lien Term Loan, 3.52%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Green Valley Ranch Gaming, LLC, Second Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.88%, 8/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-1 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">167,785</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-2 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,974,117</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-3 Loan, 3.50% &#150; 3.60%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">184</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">147,842</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penn National Gaming, Inc., Term Loan B, 2.01 &#150; 2.21%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/03/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,136</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,104,234</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan (Second Lien), 2.88%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">979</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">729,086</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Travelport LLC (fka Travelport Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Original Post-First Amendment and Restatement</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit Loan, 3.10%, 8/23/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">178</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,153</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Dollar Term Loan, 2.76% &#150; 3.10%, 8/23/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">889</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">798,171</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VML US Finance LLC (aka Venetian Macau), Term B:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Project Loan, 6.10%, 5/25/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">383</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Project Loan, 6.10%, 5/27/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">864</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">790,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,429,333</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Residential Services LLC, Term Loan (Second</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lien), 12.00%, 4/17/15 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,779,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jarden Corp., Term Loan B3, 3.10%, 1/24/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,372</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,353,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Simmons Bedding Co., Tranche D Term Loan, 10.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,166</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,076,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,184</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,098,083</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,307,748</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 4.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audio Visual Services Group, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 7.10%, 2/28/14 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan (First Lien), 2.85%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">620,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,977</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,692,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp. Initial:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 3.01% &#150; 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">790</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">658,169</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 3.01% &#150; 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,629</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,852,089</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-3 Term Loan, 3.01% &#150; 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RedPrairie Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.97%, 1/20/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">214,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.44% &#150; 5.25%, 7/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">562</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Solar Capital Corp.) Additional Term Loan B, 6.75%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">894,696</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.95% &#150; 4.09%, 2/28/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,261</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,182,782</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,967,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC (TXU):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,529</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,921,710</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">742,929</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,945</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,472,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,136,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp., Term Loan, 3.65% &#150; 3.88%, 12/03/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,519</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,294,833</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">491</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">451,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Internet &amp; Catalog Retail &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">708</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">701,016</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leisure Equipment &amp; Products &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77% &#150; 3.08%, 6/08/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,366,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fender Musical Instruments Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Loan, 2.54%, 6/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">165</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">132,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Loan, 2.85%, 6/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,760,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp., Term B Facility, 5.25%, 11/20/15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,529</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,554,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 3.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NACCO Materials Handling Group, Inc., Loan, 2.26% &#150; 3.41%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/21/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar Financial Corp. Tranche A Term loan, 2.31%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,492</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,447,461</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar International Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit-Linked Deposit, 3.36% &#150; 3.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,067</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">992,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance, 3.51%, 1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,933</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,728,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oshkosh Truck Corp., Term B Loan, 6.60% &#150; 6.64%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/06/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,032</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,026,883</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,183,744</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">26 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<A name="page_29"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income
Strategies Fund, Inc. (FRA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 23.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group Holdings, Inc., Loan, 8.27%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/01/10 (d)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,095</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,833,388</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AlixPartners, LLP, Tranche C Term Loan, 2.28% &#150; 2.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,590</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,546,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bresnan Communications, LLC, Additional Term Loan B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 2.51% &#150; 2.61%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">946</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">906,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalina Marketing Corp., Initial Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,523</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,431,695</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,032,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.27% &#150; 4.25%, 11/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,110</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,993,002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan (Second Lien), 4.79%, 5/05/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,802,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Term Loan B1, 7.94%, 3/25/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,463,267</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co., Ltd. (fka Education Media):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mezzanine, 17.50%, 11/14/14 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,527,027</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan, 5.26%, 6/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,633</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,037,464</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanley-Wood, LLC (FSC Acquisition), Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52% &#150; 2.54%, 3/08/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,478</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">623,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harland Clarke Holdings Corp. (fka Clarke American Corp.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.76%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800,538</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan, 2.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,741,572</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intelsat Subsidiary Holding Co., Ltd., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.78%, 7/13/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,896</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,808,521</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Knology, Inc., Term Loan, 2.51%, 6/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">724</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">687,989</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Advertising Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan Incremental, 5.50%, 9/28/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">207</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,055</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan Incremental, 5.50%, 9/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,233</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,214,611</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan E, 5.50%, 9/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 3/06/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C1, 3.78%, 3/04/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCC Iowa LLC (Mediacom Broadband Group), Tranche A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 1.76%, 3/31/10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">544</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">535,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCNA Cable Holdings LLC (OneLink Communications),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (PIK facility), 8.31%, 3/01/13 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,236</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">469,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediacom Broadband (Term Loan E), 6.50%, 11/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,868</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,871,343</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediannuaire Holding (Pages Jaunes), Term Loan D,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.77%, 4/08/16</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">188,758</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,297</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,833,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">317</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NTL Cable Plc, Second Lien, 3.62% &#150; 4.19%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/17/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,210,543</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NextMedia Operating, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 8.25%, 11/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">129,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan (First Lien), 8.25%, 11/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">266</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (Second Lien), 11.25%, 11/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,772</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212,674</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A Dollar Term Loan, 2.28%, 8/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,809</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,684,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B Dollar Term Loan, 4.03%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,778</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,541,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penton Media, Inc., Loan (Second Lien), 5.49%, 2/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment), Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 2.73%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,757</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,460,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,739</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,755,786</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UPC Financing Partnership, Facility U,4.54%, 12/31/17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,540,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media NTL, Term Loan, 4.40%, 6/03/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,513,178</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color Press Inc. and World Color (USA) Corp. (fka</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quebecor World Inc.), Term Loan, 9.00%, 6/30/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,290,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,549,913</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=6%></TD>
     <TD width=11%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Energy Transfer Equity, LP, Term Loan, 2.21%, 11/01/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 968,571</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Lien Term Loan B, 3.13%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">664</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">611,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 5.13%, 5/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">386,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.48%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,810</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,045,290</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multiline Retail &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar General Corp., Tranche B-2 Term Loan, 3.01%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/07/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,975</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,897,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC (a)(f):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">577</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">530,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">588</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">541,363</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coffeyville Resources, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Letter of Credit, 6.50%, 12/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">194</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190,216</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche D Term Loan, 8.50%, 12/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,559</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,523,964</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vulcan Energy Corp. (fka Plains Resources Inc.), Term B3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 5.50%, 8/12/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,479,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,265,853</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC, Term B Loan, 2.34% &#150; 2.65%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,297</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,151,381</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp., Term Loan, 4.06%, 12/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,619</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,499,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Finance Holdings LLC, Loan, 6.73%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/01/13 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,983</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">396,576</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,047,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalent Pharma Solutions, Inc. (fka Cardinal Health</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409, Inc.), Euro Term Loan, 2.74%, 4/15/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,173,123</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Acquisition Date Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26%, 1/18/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">738</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">733,608</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C Acquisition Date Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26%, 1/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">259</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">257,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,164,014</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Management &amp; Development &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mattamy Funding Partnership, Loan, 2.63%, 4/11/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">968</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">774,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realogy Corp., Initial Term B Loan, 3.28%, 10/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,960</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,493,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,267,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/20/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">938,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel International Finance Ltd., Tranche A, 3.13%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,187,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ntelos Inc., Term Loan B Advance, 5.75%, 7/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,185,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 87.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">206,963,770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beneficial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Interests (g)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">J.G. Wentworth LLC Preferred Equity Interests</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;(h)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">262,849</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Other Interests &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">262,849</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 27</FONT></P>

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



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<A name="page_30"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income
Strategies Fund, Inc. (FRA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=60%></TD>
     <TD width=21%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 16.75% (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Preferred Stocks &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;330,781,619) &#151; 117.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">277,574,444</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund, 0.22% (i)(j)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,018,379</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,018,379</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;2,018,379) &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,018,379</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Purchased</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco LLC, expiring December 2019</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 942.86, Broker Goldman Sachs &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Options Purchased (Cost &#151; &#36;19,556) &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;332,819,554*) &#151; 117.9%</FONT></B>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">279,612,823</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (17.9)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(42,453,259)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;237,159,564</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;333,081,083</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,045,238</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(59,513,498)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (53,468,260)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Represents a payment-in-kind security which may pay interest/dividends in addi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional par/shares.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Convertible security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Other interests represent beneficial interest in liquidation trusts and other reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zation entities and are non-income producing.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Amount is less than &#36;1,000.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,018,379</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,993</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash Sweep Series</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,634,669)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;26,105</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund&#146;s industry classifications refer to any
one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report which may combine industry</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=4%></TD>
     <TD width=1%></TD>
     <TD width=5%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=19%></TD>
     <TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=10 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date (Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 439,329 EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">315,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/15/09 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,267)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD14,031,553 EUR 10,059,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(389,413)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Royal Bank</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 703,165 EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Scotland Plc</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,053)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 290,090 CAD</FONT>&nbsp;</TD>
	<TD align=center colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">315,000 Barclays Bank Plc 10/28/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,327</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 6,118,751 GBP 3,743,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/28/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,014</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (379,392)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issues &#151; buy protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000) Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan Chase</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corp.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/20/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 3,000 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(230,284)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Host Hotels &amp;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goldman Sachs</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Resorts LP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank USA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/20/14</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(347,933)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Masco Corp.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan Chase</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/20/14</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(110,160)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mohawk</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan Chase</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Industries,</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.45%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/20/14</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(99,231)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (787,608)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issues &#151; sold protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Receive</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=right colspan=5 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party Expiration Ratings</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Co.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.80%</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UBS AG 3/20/10</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC USD 10,000 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(321,270)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using Standard &amp; Poor&#146;s rating of the issuer.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The maximum potential amount the Fund may pay should a negative credit</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">event take place as defined under the terms of the agreement. See Note 2 of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Currency Abbreviations:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">CAD</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canadian Dollar</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euro</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Pound</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Dollar</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, Financial Accounting Standards Board Statement of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Accounting Standards No. 157, &#147;Fair Value Measurements&#148; (&#147;FAS 157&#148;).</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FAS 157 clarifies the definition of fair value, establishes a framework for measuring</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fair values and requires additional disclosures about the use of fair value measure-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments. Various inputs are used in determining the fair value of investments, which</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices
for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">28 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_31"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income
Strategies Fund, Inc. (FRA)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=36%></TD>
     <TD width=13%></TD>
     <TD width=5%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 47,341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,515,611)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(49,905)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 47,341</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,565,516)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,413,145</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are swaps, options purchased, foreign currency</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,018,379</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange contracts and unfunded loan commitments. Swaps, foreign currency</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,431,524</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange contracts and unfunded loan commitments are valued at the unreal-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ized appreciation/depreciation on the instrument and options purchased are</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown at market value.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">220,043</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64,866,572</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,389,930</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,890</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">217,496,435</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,143</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,823,032</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,573,840</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other Interests</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">262,849</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57,664,864</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;279,592,823</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Stocks</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interests</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,036</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;27,972,884</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;27,977,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,318,545)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,318,545)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (140,889)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,598,443)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,739,332)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,770,999)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,770,999)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,963,921</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53,288,943</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 262,849</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,515,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,143</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,823,032</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;54,573,840</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 262,849</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,664,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized appreciation/depreciation on the
Statements of Operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of other financial instruments for unobservable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (49,905)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (49,905)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are unfunded loan commitments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 29</FONT></P>

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



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<A name="page_32"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Credit Auto Owner Trust Series 2009-A Class A3B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77%, 5/15/13 (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,135</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,373,195</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest Only &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sterling Bank Trust Series 2004-2 Class Note, 2.08%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/30/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,549</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,431,764</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sterling Coofs Trust Series 1, 2.36%, 4/15/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,819</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,236,448</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,668,212</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Asset-Backed Securities &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,041,407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sirva (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,109</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,545</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction &amp; Engineering &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USI United Subcontractors (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,111</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,444</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euramax International (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">234</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,512</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">87,501</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Air Freight &amp; Logistics &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Park-Ohio Industries, Inc., 8.38%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">905</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">571,281</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Airlines Pass Through Trust Series 1999-1,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.32%, 4/15/11</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">520</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">512,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lear Corp., 8.75%, 12/01/16 (a)(b)(c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">525</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Automobiles &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Capital BV, 9.50%, 6/01/10</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPG International I, Inc., 10.50%, 7/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">536,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E*Trade Financial Corp. (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.99%, 8/31/19 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425,479</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.50%, 11/30/17 (f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, 10.62%, 1/15/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,651</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,113,420</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (d)(f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,105</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (d)(f)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">759</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">197,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,080,449</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Pacific Corp., 9.00%, 2/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">992,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ames True Temper, Inc., 4.51%, 1/15/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,085</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,834,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Innophos, Inc., 8.88%, 8/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,158,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Terra Capital, Inc., Series B, 7.00%, 2/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,137</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,999,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DI Finance, Series B, 9.50%, 2/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,326</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,357,983</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Waste Services, Inc., 9.50%, 4/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,065</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,044,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,402,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Consumer Finance &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Credit Co. LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.38%, 2/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,706,791</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.26%, 1/13/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">565</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470,363</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.80%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,665</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,540,202</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,717,356</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berry Plastics Holding Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 9/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">510</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 367,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.88%, 9/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Americas LLC, 7.75%, 11/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">885</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">876,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Impress Holdings BV, 3.63%, 9/15/13 (a)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,370</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,251,837</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pregis Corp., 12.38%, 10/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,020</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,818,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,722,387</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GMAC LLC, 6.88%, 8/28/12 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,731</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,505,970</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Structured Asset Repackaged Trust, 1.00%, 1/21/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,082</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,049,539</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,555,509</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cincinnati Bell, Inc., 7.25%, 7/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,330</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,290,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche Telekom International Finance BV, 8.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/15/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,258,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,907,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">952,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Communications International, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 7.50%, 2/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,880,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 2/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">610</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">588,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Corp., 3.88%, 6/15/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,775,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Acquisition Finance SA, 10.75%, 12/01/15 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">967,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Windstream Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.13%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,480</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,480,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.63%, 8/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">990</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">993,712</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,094,557</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electric Utilities &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Elwood Energy LLC, 8.16%, 7/05/26</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,438</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electronic Equipment, Instruments &amp; Components &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sanmina-SCI Corp., 8.13%, 3/01/16</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">517,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Compagnie Generale de Geophysique-Veritas:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">242,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.75%, 5/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">420</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">396,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North American Energy Partners, Inc., 8.75%, 12/01/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">767,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Duane Reade, Inc., 11.75%, 8/01/15 (d)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">459,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (d)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,810</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,846,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., 10.00%, 10/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">525,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC, 10.88%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,830</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,676,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,201,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tenet Healthcare Corp. (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.00%, 5/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">812</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">832,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 5/01/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">332</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">357,730</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Viant Holdings, Inc., 10.13%, 7/15/17 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,948</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,771,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,961,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Real Estate Partners LP:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.13%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,860</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,772,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 2/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,480</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,406,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(c)(d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,344</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">288,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc. (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 12/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">720</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">514,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 12/15/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,881</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,316,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tropicana Entertainment LLC Series WI, 9.63%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/14 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">234</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,298,794</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">30 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_33"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=71%></TD>
     <TD width=9%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline/Benchcraft, LLC, 4.50%, 11/03/12 (d)(e)(f) USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">iPayment, Inc., 9.75%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">612,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">iPayment Investors LP, 12.75%, 7/15/14 (d)(f)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,759</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,189,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems, Inc., 4.88%, 1/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,995,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The AES Corp., 8.75%, 5/15/13 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,803</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,845,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,243,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NRG Energy, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 2/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.38%, 2/01/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">454,219</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,747,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp. (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.75%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.50%, 12/01/15 (f)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,678</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,966,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,989,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AGY Holding Corp., 11.00%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,343,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accuride Corp., 8.50%, 2/01/15 (b)(c)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">170,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,125</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,343,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synventive Molding Solutions, Sub-Series A, 14.00%, 1/14/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">720</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">287,888</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,144,638</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Marine &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navios Maritime Holdings, Inc., 9.50%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">676</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">591,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 3.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group, Inc., 10.13%, 10/15/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,807,344</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMP Susquehanna Corp., 4.75%, 5/15/14 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">194</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,880</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Holdings II, LLC (b)(c):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.25%, 9/15/10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,155</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,283,494</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 10.25%, 9/15/10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">765</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850,106</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Inc., 6.50%, 10/01/27 (b)(c)(e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EchoStar DBS Corp.,:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 10/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 2/01/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,575</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">598,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Network Communications, Inc., 10.75%, 12/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC, 10.00%, 8/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,491,775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ProtoStar I Ltd., 18.00%, 10/15/12 (b)(c)(d)(e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,454</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,381,644</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rainbow National Services LLC (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.38%, 9/01/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,134</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,275,030</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.75%, 9/01/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">925</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">934,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TL Acquisitions, Inc., 10.50%, 1/15/15 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,965</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,518,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,390,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Freeport-McMoRan Copper &amp; Gold, Inc., 8.38%, 4/01/17</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,277,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berry Petroleum Co., 8.25%, 11/01/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chesapeake Energy Corp., 6.38%, 6/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">592,313</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EXCO Resources, Inc., 7.25%, 1/15/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Encore Acquisition Co., 6.00%, 7/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">OPTI Canada, Inc., 8.25%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,805</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,173,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Overseas Shipholding Group, Inc., 8.75%, 12/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,148,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sabine Pass LNG LP, 7.50%, 11/30/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,515</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,227,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SandRidge Energy, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.22%, 4/01/14 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,245,552</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.63%, 4/01/15 (f)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Whiting Petroleum Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 5/01/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 5/01/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,390</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,376,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,196,140</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Domtar Corp., 7.88%, 10/15/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.73%, 5/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 5/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">635</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">344,487</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">996,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Professional Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FTI Consulting, Inc., 7.75%, 10/01/16</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">341,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Investment Trusts (REITs) &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rouse Co. LP, 5.38%, 11/26/13 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,640</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,238,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BMS Holdings, Inc., 8.35%, 2/15/12 (a)(d)(f)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,122</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.40%, 3/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,980,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.75%, 3/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,606,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Group 1 Automotive, Inc., 8.25%, 8/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,512,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lazydays RV Center, Inc., 11.75%, 5/15/12 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,454</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sonic Automotive, Inc., Series B, 8.63%, 8/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,135</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,649,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,762,615</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Levi Strauss &amp; Co., 8.63%, 4/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,285,833</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quiksilver, Inc., 6.88%, 4/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">575</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,650,958</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reynolds American, Inc., 7.63%, 6/01/16</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,055,033</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.75%, 5/15/16 (d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,182,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.38%, 11/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254,475</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel Group Ltd. (d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.88%, 1/15/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">999,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.13%, 1/15/15 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,467</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,174,044</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetroPCS Wireless, Inc., 9.25%, 11/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">264,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,875,556</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 25.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138,405,020</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avio SpA:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.39%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">995</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">836,162</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2, 3.01%, 12/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">840,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawker Beechcraft Acquisition Co. LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit Facility Deposit, 2.28%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">156</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">115,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26% &#150; 2.60%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,637</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,965,395</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">IAP Worldwide Services, Inc. Term Loan (First-Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 12/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">108,249</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,865,804</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Airways Group, Inc., Loan, 2.76%, 3/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,190</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,179,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,004</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,418,134</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,876</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,436,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dayco Products LLC &#150; (Mark IV Industries, Inc.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Replacement Term B Loan, 8.75%, 6/21/11 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">854</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">352,803</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 31</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Corp. (b)(c):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche C Loan Debtor in Possession,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,538</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,495,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequent Tranche C Loan Debtor in Possession,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.50%, 12/31/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">462</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mark IV Industries:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Replacement Term B Loan, 8.50%, 5/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Term Loan, Debtor in Possession Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.50%, 5/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,048,011</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beverages &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Culligan International Co., Loan (Second Lien), 5.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/24/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">537,604</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">InBev NV/SA, Bridge Loan, 1.95%, 7/15/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,421,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Le-Nature&#146;s, Inc., Tranche B Loan, 9.39% &#150; 9.42%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/30/11 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">195,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,153,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Building Materials Corp. of America, Term Loan Advance,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.06%, 2/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,586</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,359,709</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custom Building Products, Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.75%, 4/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,404,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials (Blitz 06-103 GmbH),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 2.74%, 12/04/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,076,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Subcontractors, First Lien Term Loan, 2.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/27/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,962,658</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, Term Loan, 4.81%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">462</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">198,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nuveen Investments, Inc., Term Loan, 3.49% &#150; 3.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,359</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,103,211</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,301,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 3.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">889</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">903,747</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brenntag Holdings Gmbh &amp; Co. KG:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility 2, 4.27%, 7/17/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">413,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility 3A (Second Lien), 5.65%, 7/17/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">115</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,147</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility 3B Second Lien, 5.65%, 7/17/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B6B, 3.60%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">218</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">297,235</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan B6A, 3.60%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">383,929</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cognis GmbH:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility A (French) 3.27%, 9/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">803</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">988,926</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B (French) 3.27%, 9/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">197</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">242,186</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.85%, 5/31/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">278,290</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ElectricInvest Holding Co. Ltd. (Viridian Group Plc)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Junior Term Facility:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 12/21/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">894</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">819,938</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.04%, 12/21/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">937,698</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc., Tranche B Term Loan, 2.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/26/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,237</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,179,629</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ineos US Finance LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term A4 Facility, 7.00%, 12/14/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">334</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267,699</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B2 Facility, 7.50%, 12/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,631</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,239,581</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term C2 Facility, 8.00%, 12/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,631</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,239,581</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan, 6.50%, 5/06/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,075</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,103,531</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.77%, 7/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,787,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Loan), 3.52% &#150; 3.75%, 7/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,960</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,263,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rockwood Specialties Group, Inc., Term Loan H, 6.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">940</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">946,544</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc., Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,732</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,714,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,599,523</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ARAMARK Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit, 0.22%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 172,822</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan, 2.47%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,907</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,720,334</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Inc., Term B Loan, 5.60%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">635</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">636,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EnviroSolutions Real Property Holdings, Inc., Initial Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 10.50%, 7/07/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,707</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kion Group GmbH (formerly Neggio Holdings 3 GmbH):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.51%, 12/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.76%, 12/29/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">259</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,412</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synagro Technologies, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26% &#150; 2.27%, 4/02/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,715</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,138,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp., Term B-2 Loan, 2.64% &#150; 2.65%, 10/24/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">880</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">834,806</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,205,207</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Communications Equipment &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Safenet, Inc., Term Loan (First Lien), 2.77%, 4/12/14</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">696</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,227</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan (First Lien), 2.37%, 5/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,431</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,373,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second-Lien Term Loan, 6.26% &#150; 6.37%, 11/28/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">699,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,072,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction &amp; Engineering &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brand Energy &amp; Infrastructure Services, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FR Brand Acquisition Corp.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Lien Term Loan B, 2.31% &#150; 2.63%, 2/07/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,510</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 6.31% &#150; 6.44%, 2/07/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">690,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">717,510</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantis Plastic Films, Inc., Term Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.25%, 3/22/12 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co., LP, B Term Loan, 2.56%, 10/07/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">873,017</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graphic Packaging International, Inc., Incremental Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 3.08% &#150; 3.35%, 5/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,324</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,291,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprise, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C, 2.57%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">198</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">188,044</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C-1 Term Loan, 2.57%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc., U.S. Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Debtor in Possession, 10.00%, 7/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,301</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,313,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc. (b)(c):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deposit Funded Facility, 4.50%, 11/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">87,705</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B, 2.57%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">99,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container, Revolving Credit US,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.01% &#150; 4.50%, 11/01/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">459</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">437,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container, Canadian Revolving Credit,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.28% &#150; 5.00%, 11/02/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145,116</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,493,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributors &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Keystone Automotive Operations, Inc., Loan, 3.77% &#150; 5.75%</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/12/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,419</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">773,397</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Service Corp., Term Loan, 3.28% &#150; 3.43%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,690</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,986,905</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education Management, LLC, Term Loan C, 2.38%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">748</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">714,995</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,701,900</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">32 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_35"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional Service Industries, Inc., Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 3.02%, 10/31/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">620</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 310,223</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCM Ireland Holdings Ltd. (Eircom):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.37%, 9/30/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,970</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,567,463</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.62%, 9/30/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,970</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,567,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawaiian Telcom Communications, Inc., Tranche C Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 4.75%, 5/30/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,921</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,165,804</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">343,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., Replacement Term Loan, 2.76%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">422</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">397,514</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Time Warner Telecom Holdings Inc., Term Loan B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 1/07/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,055</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,028,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Telecomunicazioni S.P.A., A1 Term Loan Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.95% &#150; 3.02%, 9/22/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">577,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,647,026</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electric Utilities &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TPF Generation Holdings, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic LC Deposit (First Lien), 2.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142,317</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Revolving Deposit, 2.28%, 12/15/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,613</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Loan), 2.26%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">429</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">405,181</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">592,111</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Electrical Components International Holdings Co. (ECI)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (Second Lien), 11.50%, 5/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generac Acquisition Corp., Term Loan (First Lien), 2.78%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,464</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,227,277</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,252,277</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electronic Equipment, Instruments &amp; Components &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Flextronics International Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Closing Date Loan, 2.52% &#150; 2.85%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,820</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,424,445</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 2.76%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,098</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">984,037</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Matinvest 2 SAS/Butterfly Wendel US, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Deutsche Connector):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-2 Facility, 2.97%, 6/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">445</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249,061</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B-2 Facility, 2.97%, 6/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,586</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C-2 Facility, 3.22%, 6/22/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">719</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">402,826</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C-2 Facility, 3.22%, 6/22/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,536</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,140,491</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc. Term B Loan, 2.68%, 5/04/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,082</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,940,767</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MEG Energy Corp., Initial Term Loan, 2.60%, 4/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trinidad USA Partnership LLP, US Term Loan, 2.78%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,022</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">868,678</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,258,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 7/09/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,881,995</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DSW Holdings Inc., Loan, 4.27%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/21/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">421,667</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">776,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">872</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">841,462</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,921,374</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.51%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 281,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,054</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Michael Foods, Term Loan B, 6.50%, 4/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,478</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,494,122</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,822</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,833,438</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,468</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,496,111</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,597,206</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Dollar Term Loan, 3.26% &#150; 3.61%, 3/25/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,678</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,610,226</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Finance LLC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.26% &#150; 3.60%, 5/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,463</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,351,688</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,961,914</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical Inc. (Chronic Care):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan Debtor in Possession, 11.00%, 11/14/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 4.35%, 9/30/12 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">875</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">394,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">410</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">382,005</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.51% &#150; 2.62%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,041</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,490,958</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalent Pharma Solutions, Inc. (fka Cardinal Health</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409, Inc.), Euro Term Loan, 2.74%, 4/10/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,960</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,346,245</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita, Inc., Tranche B-1 Term Loan, 1.77% &#150; 2.10%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/05/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">719,687</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,824</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,703,243</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HealthSouth Corp., Term Loan, 2.52% &#150; 2.53%, 3/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,312</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,235,586</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">721</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,307</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vanguard Health Holding Co. II, LLC (Vanguard Health</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">System, Inc.), Replacement Term Loan, 2.51%, 9/23/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,317</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,281,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,234,772</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Technology &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunquest Information Systems, Inc. (Misys Hospital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Systems, Inc.), Term Loan, 3.52% &#150; 3.74%, 10/13/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,474</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,343,569</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLB Worldwide Holdings, Inc. (Wembley, Inc.), First Priority</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 9/01/09 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,989</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,093,953</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCM Merger Inc. (Motor City Casino), Term B Loan, 8.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/13/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,503</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,402,917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Green Valley Ranch Gaming, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 3.88%, 8/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (New), 2.54% &#150; 4.00%, 2/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">471</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-1 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">391,498</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-2 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">613</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493,529</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-3 Loan, 3.50% &#150; 3.60%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">704</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">566,874</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">OSI Restaurant Partners, LLC, Revolving Credit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 2.56%, 6/14/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,482</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penn National Gaming, Inc., Term Loan B, 2.01% &#150; 2.21%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/03/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,828</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,720,123</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan (First Lien), 2.88%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,940</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,445,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Travelport LLC (fka Travelport Inc.), Loan, 8.49%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,607</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,580,008</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,354,229</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline/Benchcraft, LLC., Term Loan, 4.04%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/03/11 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jarden Corp., Term Loan B3, 3.10%, 1/24/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">816</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">805,133</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Simmons Bedding Co., Tranche D Term Loan, 10.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,157,918</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">947</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">878,467</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,846,891</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 33</FONT></P>

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



<!--$$/page=-->
<A name="page_36"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Central Garden &amp; Pet Co., Tranche B Term Loan, 1.77%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/30/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">991</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 929,582</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amadeus IT Group SA/Amadeus Verwaltungs GmbH:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B3 Facility, 2.54%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">388,217</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B4 Facility, 2.54%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">184</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,783</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term C3 Facility, 3.04%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">388,217</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term C4 Facility, 3.04%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">184</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,783</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audio Visual Services Group, Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.10%, 12/28/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp., US Term Loan, 3.27%, 11/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,460</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,961,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,664</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,052,266</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,237</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,029,624</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">563</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">467,929</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RedPrairie Corp., Term Loan B, 3.44% &#150; 5.25%, 7/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">605</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">523,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc. (Solar Capital Corp.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incremental Term Loan, 6.75%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,197</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,189,931</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B U.S. Term Loan, 3.95% &#150; 4.09%, 2/28/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,972</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verifone, Inc., Term B Loan, 3.02%, 10/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">864,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,535,556</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC (TXU):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,188</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,182,903</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.78% -3.79%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,233</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,473,543</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,656,446</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Conseco, Inc., Term Loan, 6.50%, 10/10/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">729</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">554,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leisure Equipment &amp; Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77% &#150; 3.08%, 6/08/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">968</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">841,725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp., Term B Facility, 5.25%, 11/23/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,783</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,800,956</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Blount, Inc., Term Loan B, 2.02% &#150; 3.25%, 8/09/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">651</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">612,091</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LN Acquisition Corp. (Lincoln Industrial), Initial Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 6.07%, 1/09/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,110,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NACCO Materials Handling Group, Inc., Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26% &#150; 3.44%, 3/21/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">329,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar Financial Corp., Tranche A Term Loan, 2.31%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">970,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar International Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance, 3.51%, 1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,447</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,205,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit-Linked Deposit, 3.36% &#150; 3.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/19/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,165,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oshkosh Truck Corp., Term B Loan, 6.60% &#150; 6.64%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/06/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,570</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,562,971</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Standard Steel, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 8.25%, 7/02/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,734</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 9.00%, 7/02/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">369</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">291,416</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,306,012</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Marine &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Acquisition Holding I BV (fka Dockwise):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.60%, 1/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">812,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2, 3.47%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">812,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,624,936</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 11.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acosta, Inc., Term Loan, 2.54%, 7/28/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">970</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 917,863</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group Holdings, Inc., Loan, 8.27%, 3/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,048</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">916,694</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AlixPartners, LLP, Tranche C Term Loan, 2.28% &#150; 2.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,446</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,406,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alpha Topco Limited (Formula One):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 2.51%, 12/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">840</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">706,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.51%, 12/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility D, 3.76%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">740,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantic Broadband Finance, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B-2-B, 6.75%, 6/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">935</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">935,386</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2-A Term Loan, 2.85%, 9/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,372</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings Inc (Cablevision), Incremental B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02% &#150; 2.07%, 3/29/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,630</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,542,399</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalina Marketing Corp., Initial Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,075</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,009,897</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,713</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,564,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC, Term Loan, 2.27%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,932,774</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Operating, LLC, New Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 3/06/14 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,282</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,045,871</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Term Loan B1, 4.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">749,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">735,531</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gray Television, Inc., Term Loan B, 3.78%, 12/31/14 (f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">726</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">523,926</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HIT Entertainment, Inc., Term Loan (Second Lien), 5.98%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/26/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co. Ltd., Mezzanine, 17.50%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/14/14 (f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,615</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,442,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanley-Wood, LLC (FSC Acquisition), Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52% &#150; 2.54%, 3/08/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,478</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">623,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harland Clarke Holdings Corp. (fka Clarke American Corp.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.79% &#150; 3.10%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,469</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,268</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan, 2.28%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,479,143</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intelsat Corp. (fka PanAmSat Corp.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B-2-A, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">588</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">554,572</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B-2-B, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">587</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">555,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B-2-C, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">587</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">555,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Knology, Inc., Term Loan, 2.51%, 6/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">458,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Media Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B Incremental, 5.50%, 9/28/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,223</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,204,895</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 5.50%, 9/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 6/30/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C1, 3.78%, 6/30/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility D, 4.90%, 12/28/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">904</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">194,454</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCNA Cable Holdings LLC (OneLink Communications),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 8.31%, 3/01/13 (f)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,855</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">704,759</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediacom Illinois, LLC (fka Mediacom Communications,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC), Tranche D Term Loan, 3.96%, 3/31/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCC Iowa LLC (Mediacom Broadband Group), Tranche E</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 6.50%, 1/03/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,428</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,757</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,533,358</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mission Broadcasting, Inc., Term B Loan, 2.35%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,873</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,573,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">317</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NV Broadcasting, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan Debtor in Possession, 13.00%, 2/25/10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 5.25%, 11/01/13 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">821</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">205,367</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,526,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nexstar Broadcasting, Inc., Term B Loan, 2.09% &#150; 2.24%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,771</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,487,936</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">34 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<A name="page_37"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A Dollar Term Loan, 2.28%, 8/09/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,302</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,211,586</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B Dollar Term Loan, 4.03%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,718</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,547,420</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Parkin Broadcasting, LLC, Term Loan, 5.25%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/13 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,127</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penton Media, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 5.49%, 2/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.51% &#150; 2.74%, 2/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">736,791</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ProtoStar Ltd. (b)(c):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Debtor in Possession Term Loan, 18.00%, 10/15/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,842</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolver, 18.00%, 9/30/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">407</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">398,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Cable Acquisition Co. Inc. (dba Choice TV),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (Second Lien), 7.81%, 2/15/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">692</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Springer:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 2.69%, 9/16/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">820</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">760,086</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C-2, 3.35%, 5/05/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">553,254</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan E-2, 3.29%, 9/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan E2-U, 3.29%, 9/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">311</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">287,989</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Facility, 2.73%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,268</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,054,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,496</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,504,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Telecommunications Management, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multi-Draw Term Loan, 3.76%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">146,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.76%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">922</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">580,545</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UPC Financing Partnership, Facility U, 4.54%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,013</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,940,858</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media Investment Holdings Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B1 Facility, 3.89%, 7/30/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">380</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B2 Facility, 3.89%, 3/09/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">303,947</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Facility, 3.62%, 7/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,865,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color Press Inc. and World Color (USA) Corp.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(fka Quebecor World Inc.), Advance, 9.00%, 6/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,290,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yell Group Plc Facility B2, 3.49%, 10/29/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,453,041</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65,058,163</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essar Stell Algoma Inc. (fka Algoma Steel Inc.), Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 2.77%, 6/20/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">445,455</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Lien Term Loan B, 3.13%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,895</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,744,426</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.48%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">244</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,763</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mach Gen, LLC Synthetic, LC Loan (First Lien), 0.35%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/22/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,696</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,032,885</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC (b)(c):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">546</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">502,477</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,007</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">926,778</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coffeyville Resources, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Letter of Credit, 6.50%, 12/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95,108</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche D Term Loan, 8.50%, 12/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">780</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">761,982</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Drummond Co., Inc., Term Advance, 1.51%, 2/14/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,075</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,042,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Niska Gas Storage Canada ULC Canadian, Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">451</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425,849</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Niska Gas Storage US, LLC, US Term B Loan, 2.02%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Niska Gas Storage US, LLC, Wild Goose Acquisition</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Draw-US Term B, 2.02%, 5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,312</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,068</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,147,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,977,275</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 2.34% &#150; 2.46%, 12/20/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,897</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,833,036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Loan, 2.34% &#150; 2.65%, 12/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,366,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp., Term Loan, 4.06%, 12/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,593</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,401,374</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Finance Holdings LLC, Loan, 6.73%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/01/13 (f)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,029</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,720,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Personal Products &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Safety Razor Co., LLC, Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.52%, 1/30/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,950,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Management &amp; Development &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enclave, Term Loan B, 6.14%, 3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">395,397</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgian Towers, Term Loan, 6.14%, 3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pivotal Promontory, LLC, Second Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.75%, 8/31/11 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">805,272</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bankruptcy Management Solutions, Inc., Term Loan (First</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lien), 4.27%, 7/31/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">945</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">538,792</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/20/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,172,916</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eye Care Centers of America, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77% &#150; 3.16%, 3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">522</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,296</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">OSH Properties, LLC (Orchard Supply), Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.72%, 12/04/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,245,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,924,212</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanesbrands Inc., Term B Loan, 5.02% &#150; 5.25%, 9/05/13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">872</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">872,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">St. John Knits International, Inc., Term Loan, 10.00%, 3/23/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">631</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">454,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Springer, Term Loan E, 3.29%, 9/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,719</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,368,066</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trading Companies &amp; Distributors &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beacon Sales Acquisition, Inc., Term B Loan, 2.26% &#150; 2.60%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/30/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,191</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,119,187</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cellular South, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.01%, 5/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.01% &#150; 4.00%, 5/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,403,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel International Finance Ltd., Tranche A, 3.13%,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,092,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,973,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 47.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">263,340,708</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Foreign Agency Obligations</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peru Government International Bond, 8.38%, 5/03/16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,871</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,699,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turkey Government International Bond, 7.00%, 9/26/16</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,093</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,385,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Foreign Agency Obligations &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,084,917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beneficial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Interests (g)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">J.G. Wentworth LLC Preferred Equity Interests</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">502,843</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Critical Care Systems International, Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline Benchcraft Equity LLC</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Other Interests &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">504,368</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 35</FONT></P>

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



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=18%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC (b)(h)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">177</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 45,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMP Susquehanna Radio Holdings Corp. (h)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,243</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Preferred Stocks &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">U.S. Government Sponsored</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Agency Obligations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Agency Obligations &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fannie Mae, 7.25%, 1/15/10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 17,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,450,245</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Mortgage-Backed Securities &#151; 24.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fannie Mae Guaranteed Pass Through Certificates:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/15/24 (i)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,104,748</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 12/01/28 &#150; 11/01/33 (j)(k)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,563</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,876,101</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total U.S. Government Sponsored</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Agency Obligations &#151; 27.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150,431,094</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">U.S. Treasury Obligations</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">U.S. Treasury Notes:</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.38%, 9/15/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,428,747</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.25%, 8/15/15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,815</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,967,572</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total U.S. Treasury Obligations &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,396,319</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Warrants (l)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synventive Molding Solutions (expires 1/15/13) (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMP Susquehanna Radio Holdings Corp. (expires</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/26/19) (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,701</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turbo Cayman Ltd. (No Expiration) (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Warrants &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;662,132,560) &#151; 105.4%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">581,336,469</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund, 0.22% (m)(n)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,671,566</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,671,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;96,671,566) &#151; 17.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,671,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Purchased</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco LLC, expiring December</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2019 at USD 942.86, Broker Goldman Sachs &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Options Purchased</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Premiums Paid &#151; &#36;44,978) &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;758,849,104*) &#151; 122.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">678,054,035</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (22.9)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(126,549,501)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;551,504,534</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=21%></TD>
     <TD width=21%></TD>
     <TD width=18%></TD>
     <TD width=13%></TD>
     <TD width=4%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=right colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 759,386,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,364,256</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(90,696,738)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (81,332,482)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Convertible security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Represents a payment-in-kind security which may pay interest/dividends in addi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional par/shares.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Other interests represent beneficial interest in liquidation trusts and other reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zation entities and are non-income producing.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Security is perpetual in nature and has no stated maturity date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Represents or includes a to-be-announced transaction. The Trust has committed to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchasing (selling) securities for which all specific information is not available at</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this time.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goldman Sachs &amp; Co.</FONT>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;126,104,748</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,285,686</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) All or a portion of security has been pledged as collateral for financial futures</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(k) All or a portion of security has been pledged as collateral in connection with open</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swap contracts.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(l) Warrants entitle the Trust to purchase a predetermined number of shares of com-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mon stock and are non-income producing. The purchase price and number of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares are subject to adjustment under certain conditions until the expiration date.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(m) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund</FONT>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 96,671,566</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 176,533</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(n) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine industry</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date (Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 4,838,602 EUR 3,396,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (30,749)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 19,093,897</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR 13,675,000</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche Bank AG 9/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(511,105)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 8,998,740 GBP 5,505,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/28/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (505,066)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts purchased as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Face</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issue</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50 5-Year U.S. Treasury Bond December 2009</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 5,740,422</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,078</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">36 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_39"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income
Trust (BLW)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=4%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=5%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=2%></TD>
     <TD width=8%></TD>
     <TD width=1%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on traded indexes &#151; buy protection outstanding as of August 31,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Index</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty Expiration</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Suisse</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">June</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,671,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LCDX Index</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 930</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (83,859)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Currency Abbreviations:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,373,195</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euro</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,545</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Pound</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">132,134,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Dollar</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179,430,318</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Fund adopted Financial Accounting Standards</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign Agency Obligations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,084,917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Government Sponsored Agency Obligations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150,431,094</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Treasury Obligations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,396,319</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487,900,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset-Backed Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,668,212</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices
for</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81,956</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,270,943</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,910,390</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">504,368</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93,435,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;678,008,035</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,078</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">82,788</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (625,713)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,812</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,678</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (625,713)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are swaps, futures, options purchased and foreign</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts. Swaps, futures and foreign currency exchange</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts are shown at the unrealized appreciation/depreciation on the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instrument and options purchased are shown at market value.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset-Backed</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bonds</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests Interests</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;27,080,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,546</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,082,546</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,382,877)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,382,801)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,780)</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(875,732)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,027,612)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,021)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,908,145)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(491,063)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,418,888)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,909,951)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,671,992</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 81,956</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,637,662</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74,659,767</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">502,843</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85,554,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,668,212</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 81,956</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,270,943</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;83,910,390</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 504,368</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;93,435,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left colspan=10>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of other financial instruments for unobservable inputs</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,812</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,812</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are unfunded loan commitments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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



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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=31%></TD>
     <TD width=18%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Defined</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Limited</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Opportunity</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Duration</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BHL)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(DVF)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(FRA)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BLW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 140,367,876</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 128,180,846</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 277,594,444</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 581,382,469</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; affiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,578</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,018,379</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,671,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,965</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,622</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on unfunded loan commitments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60,517</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,010</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,812</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency at value</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">649,034</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,367</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,476,153</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,591</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,910,422</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,789</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash pledged as collateral in connection with swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments sold receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,838,747</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">619,692</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,512,374</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,654,815</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">729,682</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,268,686</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,394,297</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,445,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Principal paydown receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income receivable &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">241</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premiums paid</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,565</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989,746</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,946</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77,396</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74,945</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,822</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">554</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Margin variation receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,188</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepaid expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48,790</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,771</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88,878</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60,055</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,457</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81,592</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,990</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">269,647</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total assets</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145,723,216</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,678,036</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">294,238,547</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">690,810,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank overdraft</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,252</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95,339</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">406,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">541,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash held as collateral in connection with swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on unfunded loan commitments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,154,306</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,108,878</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments purchased payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,147,449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,080,921</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,737,531</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">137,777,131</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deferred income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,469</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,562</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">163,303</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">114,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">172,075</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249,395</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income dividends payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,398</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">722</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,503</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,994</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,696</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,490</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer&#146;s and Directors&#146; fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">258</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">453</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119,793</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,296</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73,465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other affiliates payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">430</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">366</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121,578</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">89,864</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,633</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,657</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">399,955</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,861,166</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,121,641</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57,078,983</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">139,305,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,862,050</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,556,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 237,159,564</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 551,504,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Consist of</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5,6</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 127,810,765</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 229,575,720</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 349,498,291</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 701,342,104</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Distributions in excess of net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(925,324)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(710,207)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(786,997)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,953,716)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,005,928)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(68,140,448)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(56,737,331)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(65,590,423)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,017,463)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(53,168,670)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(54,814,399)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(81,293,431)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,862,050</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,556,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 237,159,564</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 551,504,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.53</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.93</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.95</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment at cost &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 146,223,408</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 177,162,499</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 330,801,175</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 662,177,538</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment at cost &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,371,578</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,018,379</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,671,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency at cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 648,966</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 99,953</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,469,138</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,006</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Par value per share</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares outstanding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,008,704</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,306,154</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,336,820</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,889,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares authorized</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200 million</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200 million</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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     <TD width=61%></TD>
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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate Fund II, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment at value &#151; Master Senior Floating Rate (the &#147;Master LLC&#148;)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,548,298</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,735,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital shares sold receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">441,324</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepaid expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192,030</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101,804</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total assets</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313,181,652</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151,145,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income dividends payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">888,978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">386,592</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Contributions payable to the Master LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">440,318</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Administration fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65,564</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,418</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other affiliates payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,393</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">773</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital shares redeemed payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,006</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer&#146;s and Directors&#146; fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">238</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,760</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,522</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total liabilities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,519,257</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">798,355</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 311,662,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,347,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Consist of</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 677,826,264</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 227,132,287</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,249,054</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,729</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized loss</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(314,988,118)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(52,616,500)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(52,424,805)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,282,471)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 311,662,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,347,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.16</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.76</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cost &#151; investment in Master LLC</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 364,973,103</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 175,018,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares outstanding, par value &#36;0.10 per share, 1 billion shares
authorized</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,520,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,386,559</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">39</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Defined</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Limited</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Opportunity</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Duration</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BHL)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(DVF)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(FRA)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BLW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Income</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,932,361</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15,151,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,292,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 39,980,390</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility and other fees</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173,968</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,364</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">613,979</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">580,427</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,215</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,647</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,098</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">188,455</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,126,544</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,308,996</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,938,252</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,749,272</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,275,472</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">924,328</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,919,277</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,819,087</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">149,397</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203,610</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">187,206</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowing costs</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,577</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">258,417</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">314,968</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting services</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,989</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,840</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transfer agent</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,776</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,646</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,391</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custodian</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,343</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,355</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,903</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,970</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer and Directors</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,993</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,723</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,071</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71,284</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Printing</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,679</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,994</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,152</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Registration</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,511</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,215</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,197</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,579</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Miscellaneous</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,495</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47,295</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66,551</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">103,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,869,027</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,496,044</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,700,161</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,491,535</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">434,636</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">853,832</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,324,413</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101,955</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,303,663</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,349,876</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,024,574</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,593,490</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees waived by advisor</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(719)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(674)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(828)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,344)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees paid indirectly</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(396)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(344)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,203)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,536)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,302,548</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,348,858</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,022,543</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,561,610</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,823,996</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,960,138</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,915,709</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,187,662</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss) from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,240,206)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(47,826,125)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(48,127,734)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(50,345,439)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(875,528)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,732,047)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">933,553</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97,366</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,854,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">531,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,465,026</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,159,464</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TBA sale commitments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,619,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,261,039)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,026,972)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,729,155)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,468,788)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,969,670)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,962,138)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,868,889)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18,022,517)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(190,796)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(898,237)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">795,049</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(132,057)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,201,825)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(312,776)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,547,153)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,749,994)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unfunded corporate loans</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,544</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,951</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">132,703</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,545</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,306,747)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,137,200)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,488,290)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,814,023)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total realized and unrealized loss</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,567,786)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(59,164,172)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55,217,445)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(59,282,811)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Decrease in Net Assets Resulting from Operations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (5,743,790)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (46,204,034)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (34,301,736)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (22,095,149)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Note 9 of the Notes to Financial Statements for details of
borrowings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TR>
     <TD width=67%></TD>
     <TD width=21%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Operations (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Blackrock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate Fund II, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Income</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Investment income allocated from the Master LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21,423,940</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,905,686</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190,457</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88,396</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility and other fees</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">357,209</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166,414</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,067,282)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,424,066)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,904,324</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,736,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Administration</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">732,567</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">544,168</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transfer agent</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318,401</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tender offer</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,871</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">123,117</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,999</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Printing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,628</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,412</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Registration</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,024</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,631</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer and Directors</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,257</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">584</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Miscellaneous</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,356</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,418,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">855,680</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,486,074</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,880,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized and Unrealized Gain (Loss) Allocated from the Master LLC</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss) from investments, swaps and foreign currency</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,004,504)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,895,082)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation on investments, swaps, foreign currency and unfunded corporate loans</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,952,665)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,973,635)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total realized and unrealized loss</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,957,169)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,868,717)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Decrease in Net Assets Resulting from Operations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (28,471,095)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (12,987,967)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">41</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (BHL)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,823,996</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,088,383</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,261,039)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,116</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,306,747)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,289,284</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,743,790)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,018,783</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,810,137)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,435,571)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(88,324)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(481,911)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions to shareholders</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,898,461)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,917,482)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net proceeds from the issuance of shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,448,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to issuance of shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(200,500)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">809,153</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,341</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase in net assets resulting from capital share transactions</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">809,153</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,471,841</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total increase (decrease) in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,833,098)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,573,142</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,695,148</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,006</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,862,050</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 127,695,148</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Distributions in excess of net investment income</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (925,324)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,438,090)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,960,138</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,628,678</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,026,972)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,105,495)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,137,200)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(28,460,128)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46,204,034)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,936,945)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,947,075)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,910,360)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,882,990)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(443,389)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions to shareholders</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,830,065)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,353,749)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">883,415</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">205,747</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(62,150,684)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43,084,947)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169,707,079</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212,792,026</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,556,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 169,707,079</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Distributions in excess of net investment income</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (710,207)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (175,645)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">42</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=51%></TD>
     <TD width=26%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,915,709</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,533,760</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,729,155)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,426,510)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,488,290)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(26,845,871)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,301,736)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,738,621)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(23,842,077)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(28,321,303)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">298,574</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(57,845,239)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(39,059,924)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">295,004,803</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">334,064,727</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 237,159,564</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 295,004,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (786,997)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 848,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (BLW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">November 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007 to</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 37,187,662</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,919,013</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 55,219,613</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,468,788)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,118,166)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,120,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,814,023)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(40,618,831)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,221,592)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,095,149)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,817,984)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,118,103</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(42,793,064)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43,898,690)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,967,739)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,229,742)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,074,826)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions to shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(42,793,064)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43,898,690)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55,272,307)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,057,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(64,888,213)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(66,716,674)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,096,679)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">616,392,747</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">683,109,421</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">699,206,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 551,504,534</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 616,392,747</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 683,109,421</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (2,953,716)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,360,775)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 800,386</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">43</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TR>
     <TD width=17%></TD>
     <TD width=37%></TD>
     <TD width=25%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,486,074</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,675,323</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,004,504)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,362,509)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,952,665)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18,260,695)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(28,471,095)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,947,881)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,470,993)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(26,664,539)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from capital share transactions</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(41,795,738)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(73,502,678)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(87,737,826)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(106,115,098)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">399,400,221</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,515,319</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 311,662,395</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 399,400,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,249,054</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,069</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,880,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,299,609</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,895,082)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,857,340)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,973,635)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,921,385)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,987,967)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,479,116)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends to Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,332,675)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,294,014)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from capital share transactions</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,969,362)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,450,688)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(36,290,004)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(61,223,818)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">186,637,049</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">247,860,867</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,347,045</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 186,637,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 113,729</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 85,109</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Cash Flows</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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<TR valign="bottom">
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Limited</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Defined</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Opportunity</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Strategies</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Duration</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Trust</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BHL)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(DVF)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(FRA)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BLW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Provided by Operating Activities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (5,743,790)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (46,204,034)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (34,301,736)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (22,095,149)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by operating activities:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in interest receivable &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">538,756</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,582,682</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,533,481</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,225,321</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in dividend receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(554)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in interest receivable &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(241)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in swap receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141,449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">291,066</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,166</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,870</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in margin variation receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,789)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Increase) decrease in prepaid expenses</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(47,766)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,477)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(76,763)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,674</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in other assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(105,630)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(81,512)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(38,928)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(163,711)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase (decrease) in other liabilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">399,955</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(221,688)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in investment advisor payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,954)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(71,270)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(85,740)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(80,497)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in interest expense payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(116,002)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(30,952)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,892)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(178,414)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in other affiliates payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(405)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(784)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,109)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,334)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase (decrease) in accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,780</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47,709</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,300)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in swaps payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(38,414)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(717,602)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,980)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,232)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in officers and directors payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,915</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premium received</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">234,740</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,673</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600,834</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">575,252</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premium paid</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(259,956)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(272,513)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,838,750)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(169,500)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,132,122</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,925,734</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,346,253</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65,900,247</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amortization of premium and discount on investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,296,304)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(868,065)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,813,385)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,550,465)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in-kind Income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,566)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(969,233)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,164,458)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,556,888)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash collateral on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,600,000)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Proceeds from sales and paydowns of long-term securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,235,530</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">108,732,811</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">209,126,755</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,854,428,848</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases of long-term securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(63,427,541)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(56,652,968)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(139,581,244)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,699,772,959)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net proceeds (purchases) from sales of short-term investments</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,770,645</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,220,827</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(383,710)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(94,471,566)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash provided by operating activities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,989,113</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,730,271</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">89,196,087</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105,141,769</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Used for Financing Activities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash receipts from borrowings</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,000,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,601,456</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash payments from borrowings</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(61,500,000)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(86,500,000)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(185,500,000)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(82,138,964)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash dividends paid to shareholders</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,189,746)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,127,334)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(23,613,150)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(42,904,068)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in bank overdraft</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,905</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash used for financing activities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,689,746)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(63,627,334)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(87,069,245)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(107,441,576)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Impact from Foreign Exchange Fluctuations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash impact from foreign exchange fluctuations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,605</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,456</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71,755</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,449</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in cash</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,302,972</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(890,607)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,198,597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,244,358)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash and foreign currency at beginning of year.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256,484</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,009,763</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,277,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,303,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash and foreign currency at end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,559,456</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 119,156</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,476,153</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 59,386</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Flow Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash paid for interest</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 550,638</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 884,784</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,362,305</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 280,369</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to
average</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total assets.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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



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<A name="page_48"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=37%></TD>
     <TD width=26%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (BHL)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.33</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.87</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.55)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.21</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.68</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.09)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.62)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.10)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to issuance of shares</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.53</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.31</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.66</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.16)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.79%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.65)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11.44)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.78%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.94%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.52%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,862</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 127,695</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,141</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage, end of period per &#36;1,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,180</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,317</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675
per share sales charge from initial offering price of &#36;15.00 per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc. (DVF)</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.94</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.70</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.38</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.61</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.83</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.77</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.84</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.88)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.41)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.23)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.25</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.77)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.82)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.80)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.60</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.07</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.72)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.80)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.70)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.75)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.38)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.76)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.80)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.70)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.75)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to issuance of shares</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.94</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.50</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.70</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.38</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.80</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.77</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.16</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.85</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.53</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(23.82)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.17)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.99%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.42%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16.27)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16.08)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.19%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18.36%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8.53)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.66%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.48%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.66%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.20%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.40%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.63%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.88%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 169,707</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 212,792</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 224,156</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 219,748</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 65,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 72,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 101,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,247</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 64,335</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 95,465</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 86,132</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,543</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage, end of period per &#36;1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,975</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,591</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,955</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,524</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,167</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=32%></TD>
     <TD width=12%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.25</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.32</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.54</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.04)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.03)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.07)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.08</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.90)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.58)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.47</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.31</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.29)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.55)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.54)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.37)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.11)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.29)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.55)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.54)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.37)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.12)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.93</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.25</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.32</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.49</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.70</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.49</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.85</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8.88)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.56)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.74%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.27%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.88)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.28)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.85%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.91%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.47)%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.61%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.33%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.60%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.33%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.31%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.18%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.18%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.49%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.88%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.34%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of year (000)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 237,160</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 295,005</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 334,065</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 353,713</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 354,114</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 101,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 135,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 123,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,591</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 102,272</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 133,763</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 101,916</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 117,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage, end of year per &#36;1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,241</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,906</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,122</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,616</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,865</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">48</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (BLW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">November 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007 to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.01</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.17</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.13</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.74</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.46</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.46</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.61)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.76)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.49)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.03</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.43</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.60)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.62)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.38</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.16)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.19)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.41)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.52)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.33)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.49)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.03)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.16)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.19)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.50)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.54)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.48)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.50)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.01</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.17</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.13</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.57</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.68</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.85</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.48</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.95</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.57)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.60)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.85%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.17%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.40%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.70)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.03)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.31%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.30)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.72%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.39%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.20%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.39%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.20%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.38%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.19%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.69%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.76%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.83%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.91%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.42%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.84%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.10%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.42%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.34%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 551,505</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 616,393</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 638,109</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 699,206</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 704,961</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 739,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 64,538</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,287</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 220,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 176,010</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 159,416</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11,705</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 120,295</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 172,040</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 179,366</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 186,660</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 195,845</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">287%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">191%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">132%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage, end of period per &#36;1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,551</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,251</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,178</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,005</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,637</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes mortgage dollar roll transactions. Excluding these transactions,
the portfolio turnover would have been 79%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes TBA transactions. Excluding these transactions, the portfolio
turnover would have been 24%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">49</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
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     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.98</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.60</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.92</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.01</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.91</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.39</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.51</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.60</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.37</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.83)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.62)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.32)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.08)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.44)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.11)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.28</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.44</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends from net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.38)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.51)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.60)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.53)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.37)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.16</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.98</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.60</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.92</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.01</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.69)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.32)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.07%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.53%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.44%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.43%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.41%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.67%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.84%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of year (000)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 311,662</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 399,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 505,515</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 601,807</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 676,703</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover for the Master LLC</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the early withdrawal
charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund&#146;s shares exists.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the year ended August 31, 2008, the Fund recorded a refund related
to overpayments of prior years&#146; tender offer fees, which increased net investment income per</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share &#36;0.02 and increased total investment return 0.24%. The expense ratio excluding the refund was 1.46%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes the Fund&#146;s share of the Master LLC&#146;s allocated expenses
and/or net investment income.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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     <TD width=42%></TD>
     <TD width=13%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc.</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.67</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.70</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.79</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.67</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.41</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.54</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.63</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.56</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.39</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.89)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.69)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.34)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.10)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.50</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends from net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.43)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.53)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.64)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.55)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.38)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.76</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.67</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.35</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.70</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.79</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.70)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.61)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.68%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.59%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.54%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.79%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.53%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.03%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,347</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 186,637</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 247,861</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 322,202</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 355,108</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover for the Master LLC</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the early withdrawal
charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund&#146;s shares exists.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the year ended August 31, 2008, the Fund recorded a refund related
to overpayments of prior years&#146; tender offer fees, which increased net investment income per</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share &#36;0.02 and increased total investment return 0.11%. The expense ratio excluding the refund was 1.64%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes the Fund&#146;s share of the Master LLC&#146;s allocated expenses
and/or net investment income.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">51</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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



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<A name="page_54"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">1. Organization and Significant Accounting Policies:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust (&#147;BHL&#148;), BlackRock Diversified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Strategies Fund, Inc. (&#147;DVF&#148;), BlackRock Floating Rate Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc. (&#147;FRA&#148;), BlackRock Limited Duration Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BLW&#148;), BlackRock Senior Floating Rate Fund, Inc. (&#147;Senior Floating Rate&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock Senior Floating Rate Fund II, Inc. (&#147;Senior Floating Rate II&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(collectively, referred to as the &#147;Funds&#148; or individually as the &#147;Fund&#148;) are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">registered under the Investment Company Act of 1940, as amended (the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#147;1940 Act&#148;). BHL and BLW are organized as Delaware Statutory trusts. DVF,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA, Senior Floating Rate and Senior Floating Rate II are organized as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland corporations. BHL, DVF, FRA and BLW are registered as diversi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fied, closed-end management investment companies. Senior Floating Rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Senior Floating Rate II are registered as continuously offered, non-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">diversified, closed-end management investment companies. The Funds&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements are prepared in conformity with accounting principles</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally accepted in the United States of America, which may require the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of management accruals and estimates. Actual results may differ from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">these estimates. The Boards of Directors and the Boards of Trustees of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds are referred to throughout this report as the &#147;Board of Directors&#148; or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the &#147;Board.&#148; The Funds determine and make available for publication the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net asset value of their shares on a daily basis.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to its commencement of operations on January 31, 2008, BHL had</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no operations other than those relating to organizational matters and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sale of 8,517 shares on November 13, 2007 to BlackRock Advisors, LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(the &#147;Manager&#148;), the Funds&#146; investment advisor, an indirect, wholly owned</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subsidiary of BlackRock, Inc. (&#147;BlackRock&#148;), for &#36;122,006. BHL will termi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nate no later than December 31, 2017.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II seek to achieve their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment objectives by investing all their assets in the Master Senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate LLC (the &#147;Master LLC&#148;), which has the same investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">objective and strategies as these Funds. The value of each Fund&#146;s invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment in the Master LLC reflects each Fund&#146;s proportionate interest in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets of the Master LLC. The performance of each Fund is directly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affected by the performance of the Master LLC. The financial statements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC, including the Schedule of Investments, are included else-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">where in this report and should be read in conjunction with Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate and Senior Floating Rate II&#146;s financial statements. The percentage of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC owned by Senior Floating Rate and Senior Floating Rate II</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at August 31, 2009 was 67% and 33%, respectively.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a summary of significant accounting policies followed by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Valuation of Investments: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds value their bond investments on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">basis of last available bid prices or current market quotations provided by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dealers or pricing services selected under the supervision of each Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board. Floating rate loan interests are valued at the mean between the last</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">available bid prices from one or more brokers or dealers as obtained from a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pricing service. In determining the value of a particular investment, pricing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services may use certain information with respect to transactions in</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such investments, quotations from dealers, pricing matrixes, market trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actions in comparable investments, various relationships observed in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market between investments and calculated yield measures based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">valuation technology commonly employed in the market for such invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments. The fair value of asset-backed and mortgage-backed securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are estimated based on models that consider the estimated cash flows</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of each tranche of the entity, establishes a benchmark yield and develops</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an estimated tranche specific spread to the benchmark yield based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the unique attributes of the tranche. Financial futures contracts traded on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchanges are valued at their last sale price. To be announced (&#147;TBA&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commitments are valued at the current market value of the underlying</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities. Swap agreements are valued utilizing quotes received daily by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds&#146; pricing service or through brokers, which are derived using daily</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swap curves and trades of underlying securities. Investments in open-end</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment companies are valued at net asset value each business day.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-term securities with maturities less than 60 days may be valued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at amortized cost, which approximates fair value. The Funds value their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments in Cash Sweep Series of BlackRock Liquidity Series, LLC at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fair value, which is ordinarily based upon their pro rata ownership in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets of the underlying fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity investments traded on a recognized securities exchange or the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NASDAQ Global Market System are valued at the last reported sale price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that day or the NASDAQ official closing price, if applicable. For equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on more than one exchange, the last reported sale</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price on the exchange where the stock is primarily traded is used. Equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on a recognized exchange for which there were no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sales on that day are valued at the last available bid price. If no bid price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is available, the prior day&#146;s price will be used, unless it is determined that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such prior day&#146;s price no longer reflects the fair value of the security.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Exchange-traded options are valued at the mean between the last bid and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ask prices at the close of the options market in which the options trade.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">An exchange-traded option for which there is no mean price is valued at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the last bid price. If no bid price is available, the prior day&#146;s price will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">used, unless it is determined that such prior day&#146;s price no longer reflects</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fair value of the option. Over-the-counter options and swaptions are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">valued by an independent pricing service using a mathematical model</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which incorporates a number of market data factors, such as the trades</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and prices of the underlying securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the event that application of these methods of valuation results in a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price for an investment which is deemed not to be representative of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value of such investment or are not available, the investment will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be valued by a method approved by the Board as reflecting fair value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Fair Value Assets&#148;). When determining the price for Fair Value Assets, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisor and/or sub-advisor seeks to determine the price that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund might reasonably expect to receive from the current sale of that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset in an arm&#146;s-length transaction. Fair value determinations shall be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based upon all available factors that the investment advisor and/or sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor deems relevant. The pricing of all Fair Value Assets is subsequently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reported to the Board or a committee thereof.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">52 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generally, trading in foreign securities is substantially completed each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">day at various times prior to the close of business on the New York Stock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Exchange (&#147;NYSE&#148;). The values of such securities used in computing the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets of each Fund are determined as of such times. Foreign currency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange rates will be determined as of the close of business on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NYSE. Occasionally, events affecting the values of such securities and such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange rates may occur between the times at which they are determined</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the close of business on the NYSE that may not be reflected in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">computation of each Fund&#146;s net assets. If events (for example, a company</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">announcement, market volatility or a natural disaster) occur during such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">periods that are expected to materially affect the value of such securities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">those securities will be valued at their fair value as determined in good</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">faith by the Board or by the investment advisor using a pricing service</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or procedures approved by the Board. Foreign currency exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts are valued at the mean between the bid and ask prices. Inter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">polated values are derived when the settlement date of the contract is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an interim date for which quotations are not available.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II record their investments in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC at fair value. Valuation of securities held by the Master LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is discussed in Note 1 of the Master LLC&#146;s Notes to Financial Statements,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are included elsewhere in this report.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Senior Floating Rate and Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate II implemented Financial Accounting Standards Board Statement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Financial Accounting Standards No. 157, &#147;Fair Value Measurements&#148;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about the use of fair value measurements. Various inputs are used in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determining the fair value of investments, which are as follows:</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prices for similar assets or liabilities in markets that are active, quoted</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prices for identical or similar assets or liabilities in markets that are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not active, inputs other than quoted prices that are observable for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets or liabilities (such as interest rates, yield curves, volatilities, pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payment speeds, loss severities, credit risks and default rates) or other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market-corroborated inputs</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the circumstances, to the extent observable inputs are not available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(including the Funds&#146; own assumptions used in determining the fair</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not neces-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sarily an indication of the risk associated with investing in those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in determining the fair valuation of the Funds&#146; investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=37%></TD>
     <TD width=39%></TD>
     <TD width=23%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment in</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">the Master LLC</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">the Master LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;312,548,298</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,735,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;312,548,298</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,735,659</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Transactions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency amounts are translated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into United States dollars on the following basis: (i) market value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment securities, assets and liabilities at the current rate of exchange;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and (ii) purchases and sales of investment securities, income and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses at the rates of exchange prevailing on the respective dates of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such transactions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds report foreign currency related transactions as components of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized gains for financial reporting purposes, whereas such components</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are treated as ordinary income for federal income tax purposes.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Asset-Backed and Mortgage-Backed Securities: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in asset-backed securities. Asset-backed securities are generally issued as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pass-through certificates, which represent undivided fractional ownership</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interests in an underlying pool of assets, or as debt instruments, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are also known as collateralized obligations, and are generally issued as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the debt of a special purpose entity organized solely for the purpose of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">owning such assets and issuing such debt. Asset-backed securities are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">often backed by a pool of assets representing the obligations of a number</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of different parties. The yield characteristics of certain asset-backed securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties may differ from traditional debt securities. One such major difference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is that all or a principal part of the obligations may be prepaid at any time</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">because the underlying assets (i.e., loans) may be prepaid at any time. As</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a result, a decrease in interest rates in the market may result in increases</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the level of prepayments as borrowers, particularly mortgagors, refinance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and repay their loans. An increased prepayment rate with respect to an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset-backed security subject to such a prepayment feature will have the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">effect of shortening the maturity of the security. If a Fund has purchased</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such an asset-backed security at a premium, a faster than anticipated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prepayment rate could result in a loss of principal to the extent of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">premium paid.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may purchase certain mortgage pass-through securities. There</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are a number of important differences among the agencies and instrumen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">talities of the US Government that issue mortgage related securities and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">among the securities that they issue. For example, mortgage-related securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties guaranteed by the Government National Mortgage Association</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;GNMA&#148;) are guaranteed as to the timely payment of principal and interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by GNMA and such guarantee is backed by the full faith and credit of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United States. However, mortgage-related securities issued by the Federal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Home Loan Mortgage Corporation (&#147;FHLMC&#148;) and Federal National</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mortgage Association (&#147;FNMA&#148;) include FNMA guaranteed Mortgage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pass-Through Certificates, which are solely the obligations of the FNMA,</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 53</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are not backed by or entitled to the full faith and credit of the United</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">States and are supported by the right of the issuer to borrow from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Treasury.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds invest a significant portion of their assets in securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">backed by commercial or residential mortgage loans or in issuers that hold</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mortgage and other asset-backed securities. Please see the Schedules of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments for these securities. Changes in economic conditions, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delinquencies and/or defaults on assets underlying these securities, can</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affect the value, income and/or liquidity of such positions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Forward Commitments, When-Issued and Delayed Delivery Securities:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may purchase securities on a when-issued basis and may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchase or sell securities on a forward commitment basis. Settlement of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such transactions normally occurs within a month or more after the pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chase or sale commitment is made. The Funds may purchase securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under such conditions only with the intention of actually acquiring them,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">but may enter into a separate agreement to sell the securities before the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">settlement date. Since the value of securities purchased may fluctuate prior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to settlement, the Funds may be required to pay more at settlement than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the security is worth. In addition, the purchaser is not entitled to any of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest earned prior to the settlement. When purchasing a security on a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delayed delivery basis, the Funds assume the rights and risks of ownership</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the security, including the risk of price and yield fluctuations. In the event</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of default by the counterparty, the Funds&#146; maximum amount of loss is the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unrealized gain of the commitment, which is shown on the Schedule of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments, if any.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Stock: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest in preferred stocks. Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stock has a preference over common stock in liquidation (and generally</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in receiving dividends as well) but is subordinated to the liabilities of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuer in all respects. As a general rule, the market value of preferred stock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with a fixed dividend rate and no conversion element varies inversely with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates and perceived credit risk, while the market price of convert-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ible preferred stock generally also reflects some element of conversion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value. Because preferred stock is junior to debt securities and other obliga-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions of the issuer, deterioration in the credit quality of the issuer will cause</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater changes in the value of a preferred stock than in a more senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">debt security with similar stated yield characteristics. Unlike interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payments on debt securities, preferred stock dividends are payable only if</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared by the issuer&#146;s board of directors. Preferred stock also may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subject to optional or mandatory redemption provisions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Floating Rate Loans: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest in floating rate loans,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are generally non-investment grade, made by banks, other financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutions and privately and publicly offered corporations. Floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loans are senior in the debt structure of a corporation. Floating rate loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally pay interest at rates that are periodically determined by reference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to a base lending rate plus a premium. The base lending rates are gener-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ally (i) the lending rate offered by one or more European banks, such as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more US banks or (iii) the certificate of deposit rate. The Funds consider</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">these investments to be investments in debt securities for purposes of their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policies.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds earn and/or pay facility and other fees on floating rate loans.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other fees earned/paid include commitment, amendment, consent, com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">missions and prepayment penalty fees. Facility, amendment and consent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees are typically amortized as premium and/or accreted as discount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">over the term of the loan. Commitment, commission and various other fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded as income. Prepayment penalty fees are recognized on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accrual basis. When a Fund buys a floating rate loan it may receive a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">facility fee and when it sells a floating rate loan it may pay a facility fee.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On an ongoing basis, the Funds may receive a commitment fee based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the undrawn portion of the underlying line of credit portion of a floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate loan. In certain circumstances, the Funds may receive a prepayment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">penalty fee upon the prepayment of a floating rate loan by a borrower.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other fees received by the Funds may include covenant waiver fees and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">covenant modification fees.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may invest in multiple series or tranches of a loan. A</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">different series or tranche may have varying terms and carry different</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">associated risks.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating rate loans are usually freely callable at the issuer&#146;s option. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds may invest in such loans in the form of participations in loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Participations&#148;) and assignments of all or a portion of loans from third</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parties. Participations typically will result in the Funds having a contractual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">relationship only with the lender, not with the borrower. The Funds will have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the right to receive payments of principal, interest and any fees to which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">it is entitled only from the lender selling the Participation and only upon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipt by the lender of the payments from the borrower.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with purchasing Participations, the Funds generally will have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no right to enforce compliance by the borrower with the terms of the loan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement relating to the loans, nor any rights of offset against the bor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rower, and the Funds may not benefit directly from any collateral supporting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the loan in which it has purchased the Participation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As a result, the Funds will assume the credit risk of both the borrower and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the lender that is selling the Participation. The Funds&#146; investments in loan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participation interests involve the risk of insolvency of the financial interme-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">diaries who are parties to the transactions. In the event of the insolvency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the lender selling the Participation, the Funds may be treated as general</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">creditor of the lender and may not benefit from any offset between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lender and the borrower.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Mortgage Dollar Roll Transactions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may sell mortgage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">backed securities and simultaneously contract to repurchase substantially</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar (same type, coupon and maturity) securities on a specific future</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date at an agreed upon price. During the period between the sale</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the repurchase, the Funds will not be entitled to receive interest and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal payments on the securities sold. The Funds account for dollar roll</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions as purchases and sales and realize gains and losses on these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">54 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mortgage dollar rolls involve the risk that the market value of the securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that each Fund is required to purchase may decline below the agreed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon repurchase price of those securities. If investment performance of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities purchased does not exceed that of the securities sold as part</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the dollar roll, the use of this technique will adversely impact the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment performance of each Fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Reverse Repurchase Agreements: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may enter into reverse</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">repurchase agreements with qualified third party broker-dealers. In a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reverse repurchase agreement, the Funds sell securities to a bank or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">broker-dealer and agree to repurchase the securities at a mutually agreed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon date and price. Interest on the value of the reverse repurchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements issued and outstanding is based upon competitive market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates determined at the time of issuance. The Funds may utilize reverse</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">repurchase agreements when it is anticipated that the interest income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to be earned from the investment of the proceeds of the transaction is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater than the interest expense of the transaction. Reverse repurchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements involve leverage risk and also the risk that the market value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the securities that the Funds are obligated to repurchase under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement may decline below the repurchase price. In the event the buyer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of securities under a reverse repurchase agreement files for bankruptcy or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">becomes insolvent, the Funds&#146; use of the proceeds from the agreement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may be restricted while the other party, or its trustee or receiver, determine</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">whether or not to enforce the Funds&#146; obligation to repurchase the securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">TBA Commitments: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may enter into TBA commitments to pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chase or sell securities for a fixed price at a future date. TBA commitments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are considered securities in themselves, and involve a risk of loss if the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the security to be purchased or sold declines or increases prior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to settlement date, which is in addition to the risk of decline in the value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Funds&#146; other assets.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Segregation and Collateralization: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In cases in which the 1940 Act and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interpretive positions of the Securities and Exchange Commission (&#147;SEC&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that a Fund either delivers collateral or segregates assets in con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nection with certain investments (e.g., dollar rolls, TBA&#146;s beyond normal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">settlement, foreign currency exchange contracts, financial futures contracts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and swaps), or certain borrowings (e.g., reverse repurchase agreements)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund will, consistent with SEC rules and/or certain interpretive letters</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued by the SEC, segregate collateral or designate on its books and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">records cash or other liquid securities having a market value at least</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equal to the amount that would otherwise be required to be physically seg-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regated. Furthermore, based on requirements and agreements with certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchanges and third party broker-dealers, each party has requirements to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">deliver/deposit securities as collateral for certain investments (e.g., finan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cial futures contracts, reverse repurchase agreements and swaps). As part</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of these agreements, when the value of these investments achieves a previ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ously agreed upon value (minimum transfer amount), each party may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">required to deliver additional collateral.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Transactions and Investment Income: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For financial reporting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purposes, certain Funds&#146; investment transactions are recorded on the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dates the transactions are entered into (the trade dates). Realized gains</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and losses on security transactions are determined on the identified cost</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">basis. Dividend income is recorded on the ex-dividend dates. Dividends</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from foreign securities where the ex-dividend date may have passed are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subsequently recorded when the Funds have determined the ex-dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date. Interest income is recognized on the accrual basis. The Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amortize all premiums and discounts on debt securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II record daily their propor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tionate share of the Master LLC&#146;s income, expenses and realized and unre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">alized gains and losses. In addition, both Funds accrue their own expenses.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Dividends and Distributions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends from net investment income are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared and paid monthly. Distributions of capital gains are recorded on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the ex-dividend dates. If the total dividends and distributions made in any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tax year exceeds net investment income and accumulated realized capital</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gains, a portion of the total distribution may be treated as a tax return</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of capital.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Income Taxes: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">It is each Fund&#146;s policy to comply with the requirements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Internal Revenue Code applicable to regulated investment companies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and to distribute substantially all of its taxable income to its shareholders.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Therefore, no federal income tax provision is required. Under the applicable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign tax laws, a withholding tax may be imposed on interest, dividends</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and capital gains at various rates.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund files US federal and various state and local tax returns. No</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax returns are currently under examination. The statute of limita-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions on the Funds&#146; US federal tax returns remains open for the two periods</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended August 31, 2009 for BHL, the four years ended August 31, 2009</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for DVF, FRA, Senior Floating Rate and Senior Floating Rate II, and the two</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years ended October 31, 2007 and the two periods ended August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 for BLW. The statutes of limitations on the Funds&#146; state and local</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tax returns may remain open for an additional year depending upon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the jurisdiction.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Recent Accounting Pronouncement: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In June 2009, Statement of Financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting Standards No. 166, &#147;Accounting for Transfers of Financial Assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; an amendment of FASB Statement No. 140&#148; (&#147;FAS 166&#148;), was issued.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FAS 166 is intended to improve the relevance, representational faithfulness</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and comparability of the information that a reporting entity provides in its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements about a transfer of financial assets; the effects of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfer on its financial position, financial performance, and cash flows;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a transferor&#146;s continuing involvement, if any, in transferred financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets. FAS 166 is effective for financial statements issued for fiscal years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and interim periods beginning after November 15, 2009. Earlier application</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is prohibited. The recognition and measurement provisions of FAS 166</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">must be applied to transfers occurring on or after the effective date.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, the disclosure provisions of FAS 166 should be applied to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfers that occurred both before and after the effective date of FAS 166.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The impact of FAS 166 on the Funds&#146; statement disclosures, if any, is cur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rently being assessed.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 55</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Deferred Compensation and BlackRock Closed-End Share Equivalent</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Plan: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the deferred compensation plan approved by each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s Board, non-interested Directors (&#147;Independent Directors&#148;) may defer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a portion of their annual complex-wide compensation. Deferred amounts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earn an approximate return as though equivalent dollar amounts have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been invested in common shares of other certain BlackRock Closed-End</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds selected by the Independent Directors. This has approximately the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">same economic effect for the Independent Directors as if the Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors had invested the deferred amounts directly in other certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Closed-End Funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The deferred compensation plan is not funded and obligations thereunder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">represent general unsecured claims against the general assets of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund. Each Fund may, however, elect to invest in Common Shares of other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain BlackRock Closed-End Funds selected by the Independent Directors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in order to match its deferred compensation obligations. Investments to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cover each Fund&#146;s deferred compensation liability, if any, are included in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other assets in the Statements of Assets and Liabilities. Dividends and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions from the BlackRock Closed-End Fund investments under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">plan are included in income &#151; affiliated in the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Other: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses directly related to a Fund are charged to that Fund. Other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operating expenses shared by several funds are pro rated among those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds on the basis of relative net assets or other appropriate methods.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the terms of the custody agreement, custodian fees may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reduced by amounts calculated on uninvested cash balances, which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown on the Statements of Operations as fees paid indirectly.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">2. Derivative Financial Instruments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may engage in various portfolio investment strategies both to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase the returns of the Funds and to economically hedge, or protect,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their exposure to certain risks such as credit risk, equity risk, interest rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk and foreign currency exchange rate risk. Losses may arise if the value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the contract decreases due to an unfavorable change in the value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the underlying security or if the counterparty does not perform under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contract. The Funds may mitigate counterparty risk through master netting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements included within an International Swap and Derivatives</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Association, Inc. (&#147;ISDA&#148;) Master Agreement between a Fund and each of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its counterparties. The ISDA Master Agreement allows each Fund to offset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with its counterparty certain derivative financial instruments&#146; payables</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or receivables with collateral held with each counterparty. The amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of collateral moved to/from applicable counterparties is based upon mini-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mum transfer amounts of up to &#36;500,000. To the extent amounts due to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds from their counterparties are not fully collateralized contractually</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or otherwise, the Funds bear the risk of loss from counterparty non-perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance. See Note 1 &#147;Segregation and Collateralization&#148; for information with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to collateral practices.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds&#146; maximum risk of loss from counterparty credit risk on over-the-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counter derivatives is generally the aggregate unrealized gain in excess of</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any collateral pledged by the counterparty to the Funds. For over-the-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counter purchased options, the Funds bear the risk of loss in the amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the premiums paid and change in market value of the options should</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the counterparty not perform under the contracts. Options written by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds do not give rise to counterparty credit risk, as written options</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">obligate the Funds to perform and not the counterparty. Certain ISDA Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements allow counterparties to over-the-counter derivatives to terminate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derivative contracts prior to maturity in the event a Fund&#146;s net assets decline</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by a stated percentage or a Fund fails to meet the terms of its ISDA Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements, which would cause the Fund to accelerate payment of any net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">liability owed to the counterparty. Counterparty risk related to exchange-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">traded financial futures contracts and options is minimal because of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">protection against defaults provided by the exchange on which they trade.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Financial Futures Contracts</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">: Certain Funds may purchase or sell financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">futures contracts and options on financial futures contracts to gain expo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sure to, or economically hedge against, changes in interest rates (interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate risk) or foreign currencies (foreign currency exchange rate risk).</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts are contracts for delayed delivery of securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at a specific future date and at a specific price or yield. Pursuant to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contract, the Funds agree to receive from or pay to the broker an amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of cash equal to the daily fluctuation in value of the contract. Such receipts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or payments are known as margin variation and are recognized by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds as unrealized gains or losses. When the contract is closed, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds record a realized gain or loss equal to the difference between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the contract at the time it was opened and the value at the time</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">it was closed. The use of financial futures transactions involves the risk of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an imperfect correlation in the movements in the price of financial futures</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts, interest rates and the underlying assets.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Exchange Contracts</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">: Certain Funds may enter into foreign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts as an economic hedge against either specific</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions or portfolio positions (foreign currency exchange rate risk). A</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign currency exchange contract is an agreement between two parties to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">buy and sell a currency at a set exchange rate on a future date. Foreign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts, when used by a Fund, help to manage the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">overall exposure to the foreign currency backing some of the investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">held by a Fund. The contract is marked-to-market daily and the change in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value is recorded by a Fund as an unrealized gain or loss. When the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contract is closed, a Fund records a realized gain or loss equal to the dif-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ference between the value at the time it was opened and the value at the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">time it was closed. The use of foreign currency exchange contracts involves</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the risk that counterparties may not meet the terms of the agreement or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unfavorable movements in the value of a foreign currency relative to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US dollar.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Options</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">: Certain Funds may purchase and write call and put options to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase or decrease their exposure to underlying instruments. A call option</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gives the purchaser of the option the right (but not the obligation) to buy,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and obligates the seller to sell (when the option is exercised), the underlying</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">56 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instrument at the exercise price at any time or at a specified time during</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the option period. A put option gives the holder the right to sell and obli-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gates the writer to buy the underlying instrument at the exercise price at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any time or at a specified time during the option period. When a Fund pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chases (writes) an option, an amount equal to the premium paid (received)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by a Fund is reflected as an asset (liability) and an equivalent liability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(asset). The amount of the asset (liability) is subsequently marked-to-mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket to reflect the current market value of the option purchased</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(written). When an instrument is purchased or sold through an exercise of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an option, the related premium paid (or received) is added to (or deducted</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from) the basis of the instrument acquired or deducted from (or added to)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the proceeds of the instrument sold. When an option expires (or a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enters into a closing transaction), a Fund realizes a gain or loss on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">option to the extent of the premiums received or paid (or gain or loss to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the extent the cost of the closing transaction exceeds the premium</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">received or paid). When a Fund writes a call option, such option is &#147;cov-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ered,&#148; meaning that a Fund holds the underlying instrument subject to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">being called by the option counterparty, or cash in an amount sufficient to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cover the obligation. When a Fund writes a put option, such option is cov-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ered by cash in an amount sufficient to cover the obligation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In purchasing and writing options, a Fund bears the risk of an unfavorable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">change in the value of the underlying instrument or the risk that the Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may not be able to enter into a closing transaction due to an illiquid mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket. Exercise of a written put option could result in a Fund purchasing a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">security at a price different from the current market value. The Funds may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">execute transactions in both listed and over-the-counter options.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Swaps</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">: Certain Funds may enter into swap agreements, in which a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a counterparty agree to make periodic net payments on a specified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount. These periodic payments received or made by the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded in the Statements of Operations as realized gains or losses,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respectively. Swaps are marked-to-market daily and changes in value are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recorded as unrealized appreciation (depreciation). When the swap is ter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">minated, the Fund will record a realized gain or loss equal to the difference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">between the proceeds from (or cost of) the closing transaction and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s basis in the contract, if any. Swap transactions involve, to varying</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">degrees, elements of interest rate, credit and market risk in excess of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts recognized on the Statements of Assets and Liabilities. Such risks</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">involve the possibility that there will be no liquid market for these agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, that the counterparty to the agreements may default on its obliga-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion to perform or disagree as to the meaning of the contractual terms in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the agreements, and that there may be unfavorable changes in interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates and/or market values associated with these transactions.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps &#151; Certain Funds may enter into credit default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swaps to manage their exposure to the market or certain sectors of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market, to reduce their risk exposure to defaults of corporate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or sovereign issuers or to create exposure to corporate and/or sov-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ereign issuers to which they are not otherwise exposed (credit risk). The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds enter into credit default agreements to provide a measure of</FONT></P>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">protection against the default of an issuer (as buyer of protection)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or gain credit exposure to an issuer to which they are not other-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wise exposed (as seller of protection). The Fund may either buy or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sell (write) credit default swaps on single-name issuers (corporate or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sovereign) or traded indexes. Credit default swaps on single-name</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuers are agreements in which the buyer pays fixed periodic payments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the seller in consideration for a guarantee from the seller to make a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific payment should a negative credit event take place (e.g., bank-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ruptcy, failure to pay, obligation accelerators, repudiation, moratorium or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">restructuring). Credit default swaps on traded indexes are agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which the buyer pays fixed periodic payments to the seller in consid-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">eration for a guarantee from the seller to make a specific payment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">should a write-down, principal or interest shortfall or default of all or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">individual underlying securities included in the index occurs. As a buyer,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Fund will either receive from the seller an amount equal to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount of the swap and deliver the referenced security or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underlying securities comprising of an index or receive a net settlement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of cash equal to the notional amount of the swap less the recovery</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the security or underlying securities comprising of an index. As</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a seller (writer), a Fund will either pay the buyer an amount equal to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount of the swap and take delivery of the referenced secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rity or underlying securities comprising of an index or pay a net settle-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of cash equal to the notional amount of the swap less the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recovery value of the security or underlying securities comprising</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of an index.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate swaps &#151; Certain Funds may enter into interest rate swaps</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to manage duration, the yield curve or interest rate risk by economically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hedging the value of the fixed rate bonds which may decrease when</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates rise (interest rate risk). Interest rate swaps are agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which one party pays a floating rate of interest on a notional princi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pal amount and receives a fixed rate of interest on the same notional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal amount for a specified period of time. Interest rate floors,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are a type of interest rate swap, are agreements in which one</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party agrees to make payments to the other party to the extent that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates fall below a specified rate or floor in return for a premium.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In more complex swaps, the notional principal amount may decline</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(or amortize) over time.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaptions &#151; Swap options (swaptions) are similar to options on securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties except that instead of selling or purchasing the right to buy or sell a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">security, the writer or purchaser of the swap option is granting or buying</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the right to enter into a previously agreed upon interest rate swap</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement at any time before the expiration of the option (interest rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk). In purchasing and writing swaptions, the Funds bear the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk of an unfavorable change in the price of the underlying interest rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swap or the risk that the Funds may not be able to enter into a closing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transaction due to an illiquid market. Exercise of a written swaption</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">could result in the Funds entering into an interest rate swap at a price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">different from the current market value. The Funds execute transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in over-the-counter swaptions.</FONT></P>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT>&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 133,
Accounting for</FONT></B>&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivative Instruments and Hedging Activities:</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Values of Derivative Instruments as of August 31, 2009*</FONT></B>&nbsp;</TD>
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	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset Derivatives</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=9>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statements of Assets</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Liabilities Location</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,078**</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on foreign</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,965</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,622</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,965</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,922</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 47,341</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 104,866</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability Derivatives</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=9>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statements of Assets</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Liabilities Location</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,751,189</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on foreign</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 231,252</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95,339</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 406,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 541,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,403,117</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,108,878</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 231,252</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,249,645</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,515,611</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 625,713</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">*</FONT>&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For open derivative instruments as of August 31, 2009, see the Schedules of Investments, which is also indicative of activity for the year ended August 31,
2009.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">**</FONT>&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes cumulative appreciation/depreciation of the financial futures contracts as reported in Schedules of Investments. Only current day&#146;s margin variation is
reported within the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets &amp; Liabilities.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Effect of Derivative Instruments on the Statements of Operations</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized Gain (Loss) From Derivatives Recognized in Income</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (875,528)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,879,082)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 933,553</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (570,536)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,692,962</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">697,705</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,255,357</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,193,595</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">667,902</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,852,965)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 817,434</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(3,034,342)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,188,910</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,290,961</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (190,796)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (991,052)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 795,049</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (21,853)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,970)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,800)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,740)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,105,948)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(340,969)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,660,349)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,837,217)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(110,204)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92,815</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,296,744)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,248,176)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (879,100)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(4,001,014)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">58</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL
REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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



<!--$$/page=-->
<A name="page_61"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">3. Investment Advisory Agreement and Other Transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">with Affiliates:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The PNC Financial Services Group, Inc. (&#147;PNC&#148;) and Bank of America</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (&#147;BAC&#148;) are the largest stockholders of BlackRock. BAC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">became a stockholder of BlackRock following its acquisition of Merrill</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) on January 1, 2009. Prior to that date,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">both PNC and Merrill Lynch were considered affiliates of the Funds under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">due to the restructuring of Merrill Lynch&#146;s ownership interest of BlackRock,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BAC is not deemed to be an affiliate under the 1940 Act.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL, DVF, FRA and BLW has entered into an Investment Advisory Agreement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or an Administration Agreement with the Manager to provide investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory and/or administration services.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager is responsible for the management of each Fund&#146;s portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and provides the necessary personnel, facilities, equipment and certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other services necessary to the operations of each Fund. For such services,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL pays a monthly fee at an annual rate of 1.00%, BLW pays a monthly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fee at an annual rate of 0.55% and DVF and FRA each pay a monthly fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at an annual rate of 0.75% of the average daily value of each Fund&#146;s net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets plus the proceeds of any outstanding borrowings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager, on behalf of BHL, DVF, FRA and BLW, has entered into a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">separate sub-advisory agreement with BlackRock Financial Management,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc. (&#147;BFM&#148;), an affiliate of the Manager, under which the Manager pays</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFM, for services it provides, a monthly fee that is an annual percentage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the investment advisory fee paid by the Funds to the Manager.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has agreed to waive its advisory fees by the amount of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory fees each Fund pays to the Manager indirectly through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its investment in affiliated money market funds. These amounts are shown</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as fees waived by advisor in the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the Funds reimbursed the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for certain accounting services, which are included in accounting services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the Statements of Operations. The reimbursements were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=45%></TD>
     <TD width=54%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Services</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,463</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,278</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,348</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Merrill Lynch, Pierce, Fenner &amp; Smith, Incorporated (&#147;MLPF&amp;S&#148;), a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wholly owned subsidiary of Merrill Lynch, received underwriting fees of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,462,804 from January 31, 2008 to August 31, 2008 in connection with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the issuance of the BHL&#146;s Shares. In addition, BHL reimbursed MLPF&amp;S</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;46,000 as a partial reimbursement of expenses incurred in connection</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with the issuance of the Fund&#146;s Shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II have entered into an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Administration Agreement with the Manager. The administration fee paid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Manager is calculated daily and paid monthly based on an annual</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate of 0.25% and 0.40%, respectively, of the average daily value of these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s net assets for the performance of administrative services (other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than investment advice and related portfolio activities) necessary for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operation of these Funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II entered into a separate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Distribution Agreement and Distribution Plan with BlackRock Investments,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC (&#147;BRIL&#148;), which replaced FAM Distributors, Inc. (&#147;FAMD&#148;) and BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Distributors, Inc. and its affiliates (&#147;BDI&#148;) (collectively, the &#147;Distributor&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the sole distributor of the Funds. FAMD is a wholly owned subsidiary of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Merrill Lynch Group, Inc. BIL and BDI are affiliates of BlackRock.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the Distributor received early with-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">drawal charges for Senior Floating Rate and Senior Floating Rate II in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of &#36;181,726 and &#36;31,438, respectively, relating to the tender of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund&#146;s shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subsidiary of PNC and an affiliate of the Manager, is the transfer agent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and dividend disbursing agent for Senior Floating Rate and Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate II. Transfer agency fees borne by the Funds are comprised of those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees charged for all shareholder communications including mailing of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholder reports, dividend and distribution notices, and proxy materials</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for shareholder meetings, as well as per account and per transaction fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">related to servicing and maintenance of shareholder accounts, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the issuing, redeeming and transferring of shares, check writing, anti-money</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">laundering services, and customer identification services.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate and Senior Floating Rate II may earn income on posi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive cash balances in demand deposit accounts that are maintained by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfer agent on behalf of the Funds. These amounts are included in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income &#151; affiliated in the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain officers and/or directors of the Funds are officers and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directors of BlackRock or its affiliates. The Funds reimburse the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for compensation to the Funds&#146; Chief Compliance Officer.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">4. Investments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases and sales (including paydowns and TBA and mortgage dollar</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">roll transactions and excluding short-term securities and US Government</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities) for the year ended August 31, 2009 were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=29%></TD>
     <TD width=47%></TD>
     <TD width=22%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchases</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sales</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 53,338,515</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 79,414,735</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 57,843,776</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 108,701,709</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,946,266</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 212,820,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,712,915,647</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,835,126,323</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, purchases and sales of US govern-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment securities for BLW were &#36;0 and &#36;23,000,000, respectively.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, purchases and sales for BLW</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">attributable to mortgage dollar rolls were &#36;1,240,666,602 and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,368,558,242, respectively.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 59</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
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     <TD width=10%></TD>
     <TD width=10%></TD>
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     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">5. Income Tax Information:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Reclassifications: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">following permanent differences as of August 31, 2009 attributable to amortization methods on fixed income securities, accounting for swap agreements,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign currency transactions, the reclassification of distributions, the expiration of capital loss carryforwards and the classification of investments were</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reclassified to the following accounts:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(64,746,799)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,546,632)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,498,907</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 452,375</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,290,731</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,012,461</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,065,904</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 480,545</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized loss</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(2,498,907)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(452,375)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,290,731)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(6,012,461)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,680,895</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,066,087</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The tax character of distributions paid during the fiscal years ended October 31, 2007, the fiscal period ended August 31, 2008 and the fiscal years ended</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2008 and August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ordinary income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,810,137</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13,947,075</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,842,077</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;42,793,064</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,470,993</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,332,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,435,571</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,910,360</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,321,303</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,664,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,294,014</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/2007 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,898,690</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,967,739</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-term capital gains</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,229,742</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,324</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,882,990</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">481,911</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,389</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,074,826</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total distributions</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,898,461</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16,830,065</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,842,077</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;42,793,064</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,470,993</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,332,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,917,482</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;21,353,749</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;28,321,303</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;26,664,539</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12,294,014</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/01/2007 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;43,898,690</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;55,272,307</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of August 31, 2009, the tax components of accumulated net losses were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed ordinary income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 619,326</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 786,625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,277,797</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 106,666</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital loss carryforward</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,063,204)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (25,687,627)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,121,314)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,930,795)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(282,849,718)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,618,235)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized losses*</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,885,511)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(96,331,698)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(90,836,739)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(118,693,400)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,591,948)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(39,273,673)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total accumulated net losses</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(14,948,715)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(122,019,325)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(112,338,727)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(149,837,570)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(366,163,869)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(76,785,242)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The differences between book-basis and tax-basis net unrealized losses is attributable primarily to the tax deferral of losses on wash sales, the difference between book and
tax</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for premiums and discounts on fixed income securities, book/tax differences in the accrual of income on securities in default, the realization for tax purposes of unrealized
gains</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">/(losses) on certain futures and foreign currency contracts, the timing and recognition of partnership income, the accounting for swap agreements, the classification of
investments,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the deferral of post-October currency and capital losses for tax purposes and the deferral of compensation to Trustees.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of August 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expires</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2010</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 87,904,309</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 864,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2011</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53,409,203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,719,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2012</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,221,818</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,383,383</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2013</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 691,829</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,166,095</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,755,694</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">945,546</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2015</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,237,399</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,561,691</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2016</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,444,704</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475,453</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;21,933,927</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,419,599</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,923,144</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2017</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,063,204</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,249,830</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,954,032</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,996,868</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,221,457</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,728,284</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,063,204</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,687,627</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;22,121,314</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;31,930,795</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;282,849,718</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;37,618,235</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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



<!--$$/page=-->
<A name="page_63"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">6. Market and Credit Risk:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the normal course of business, the Funds invest in securities and enter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into transactions where risks exist due to fluctuations in the market (market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk) or failure of the issuer of a security to meet all its obligations (credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk). The value of securities held by the Funds may decline in response</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to certain events, including those directly involving the issuers whose secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities are owned by the Funds; conditions affecting the general economy;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">overall market changes; local, regional or global political, social or eco-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nomic instability; and currency and interest rate and price fluctuations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Similar to credit risk, the Funds may be exposed to counterparty risk,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or the risk that an entity with which the Funds have unsettled or open</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions may default. Financial assets, which potentially expose the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds to credit and counterparty risks, consist principally of investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and cash due from counterparties. The extent of the Funds&#146; exposure to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit and counterparty risks with respect to these financial assets is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approximated by their value recorded in the Funds&#146; Statements of Assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Liabilities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">7. Capital Share Transactions:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL and BLW are authorized to issue an unlimited number of shares, par</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value &#36;0.001, all of which were initially classified as Common Shares. DVF</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and FRA are authorized to issue 200 million shares, par value &#36;0.10, all of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which were initially classified as Common Shares. The Board is authorized,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">however, to classify and reclassify any unissued shares without approval of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=39%></TD>
     <TD width=24%></TD>
     <TD width=19%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding for the year ended August 31, 2009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the period ended August 31, 2008 (and the year ended October 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007 for BLW) increased by the following amounts as a result of dividend</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reinvestments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period Ended</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,923</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,264</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">129,277</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,892</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,791</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107,367</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At August 31, 2009, the shares owned by an affiliate of the Manager of the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,877</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,021</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL&#146;s shares issued and outstanding during the period January 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008 (commencement of operations) to August 31, 2008 increased</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by 8,900,000 from shares sold. Organization costs of &#36;22,000 were</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expensed upon the commencement of operations. Offering costs incurred</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in connection with BHL&#146;s offering of Common Shares have been charged</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">against the proceeds from the initial Common Share offering in the amount</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of &#36;200,500.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=37%></TD>
     <TD width=17%></TD>
     <TD width=20%></TD>
     <TD width=13%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transactions in capital shares, with respect to Senior Floating Rate and Senior Floating Rate II, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares sold</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,495,709</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;22,066,554</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,490,899</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,601,922</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued to shareholders in reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189,466</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,198,984</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">182,375</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,499,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total issued</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,685,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,265,538</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,673,274</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,101,278</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares tendered</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,231,989)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(65,061,276)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,412,544)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(111,603,956)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,546,814)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(41,795,738)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,739,270)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (73,502,678)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior Floating Rate II</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares sold</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,475,221</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,697,009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,834,064</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,451,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued to shareholders in reinvestment of dividends</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,856</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">580,777</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,005</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,615</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total issued</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,559,077</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,277,786</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,875,069</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,817,215</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares tendered</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,697,156)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(39,247,148)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,873,162)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(71,267,903)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,138,079)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(14,969,362)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,998,093)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (45,450,688)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">8. Commitments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may invest in floating rate loans. In connection with these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, the Funds may also enter into unfunded corporate loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;commitments&#148;). Commitments may obligate the Funds to furnish tem-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">porary financing to a borrower until permanent financing can be arranged.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with these commitments, the Funds earn a commitment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fee, typically set as a percentage of the commitment amount. Such fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income, which is classified in the Statements of Operations as facility and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other fees, is recognized ratably over the commitment period. As of August</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31, 2009, the Funds had the following unfunded loan commitments:</FONT></P>
<P align="center">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 61</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=19%></TD>
     <TD width=10%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (concluded)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Borrower</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unfunded</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Underlying</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commitment</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loans</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 442</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NV Broadcasting, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 179</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 177</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 506</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 483</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 363</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 298</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 286</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 233</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 214</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 805</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 769</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vought Aircraft Industries, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,148</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 724</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 666</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NV Broadcasting, LLC</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 90</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 89</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 904</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ProtoStar Ltd.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 529</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 529</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">9. Borrowings:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On May 16, 2008, DVF and FRA renewed their revolving credit and security</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements (&#147;Citicorp Agreement&#148;) pursuant to a commercial paper asset</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securitization program with Citicorp North America, Inc. (&#147;Citicorp&#148;), as</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agent, certain secondary backstop lenders and certain asset securitization</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">conduits, as lenders (the &#147;Lenders&#148;). The agreement was renewed for one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year and at the time of renewal had maximum limits as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maximum Limit</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 91,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;155,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Citicorp Agreement, the conduits funded advances to each Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">through the issuance of highly rated commercial paper. Each Fund had</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">granted a security interest in substantially all of its assets to, and in favor</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of, the Lenders as security for its obligations to the Lenders. The interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate on each Fund&#146;s borrowings was based on the interest rate carried by</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the commercial paper plus a program fee. In addition, each Fund paid a</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">liquidity fee to the secondary backstop lenders and the agent. Under the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citicorp Agreement, the Funds were subject to certain conditions and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">covenants, which included among other things limitations on asset declines</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">over prescribed time periods. As a result of the decline in net assets attrib-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">utable to market conditions, certain terms of the facility were renegotiated</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">effective December 5, 2008, which included waivers of certain financial</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">covenants by the Lenders, an increase in program and liquidity fees under</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the facility and a reduction of the maximum limits.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On March 5, 2009, DVF and FRA terminated their revolving credit agree-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment with Citicorp and entered into a senior committed secured, 364-day</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">revolving line of credit and a separate security agreement (the &#147;SSB</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreement&#148;) with State Street Bank and Trust Company (&#147;SSB&#148;). The SSB</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreement has the same maximum limits as the renegotiated limits under</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Citigroup Agreement and are as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maximum Limit</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;103,000,000</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=82%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds have granted a security interest in substantially all of its assets</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to SSB.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advances are made by SSB to the Funds, at the Funds&#146; option (a) the higher</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 1.0% above the Fed Effective Rate or 1.0% above the Overnight LIBOR</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate and (b) 1.0% above 7-day, 30-day, or 60-day LIBOR Rate. In addition,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds pay a facility fee and a commitment fee based upon SSBs total</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commitment to the Funds. The fees associated with each of the agreements</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are included in the Statements of Operations as borrowing costs. Advances</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Funds as of August 31, 2009 are shown in the Statements of Assets</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Liabilities as loan payable.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL is a party to a senior committed secured, 364-day revolving line of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit and a separate security agreement (the &#147;BHL Agreement&#148;) with SSB</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dated April 9, 2008. The Agreement has a maximum limit of &#36;67.5 million.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL has granted a security interest in substantially all of its assets to SSB.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL renewed its revolving line of credit and security agreement with SSB</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">effective April 8, 2009. The renewed agreement expires March 4, 2010 and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the maximum commitment was reduced to &#36;55 million.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may not declare dividends or make other distributions on shares</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or purchase any such shares if, at the time of the declaration, distribution</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or purchase, asset coverage with respect to the outstanding short term bor-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rowings is less than 300%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the daily weighted average interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates for funds with loans under the revolving credit agreement were</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Daily Weighted</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.40%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.02%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the daily weighted average interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates for funds with reverse repurchase agreements were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Daily Weighted</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.87%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">10. Subsequent Events:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds paid a net investment income dividend on September 30, 2009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to shareholders of record on September 15, 2009 as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0785</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0815</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management&#146;s evaluation of the impact of all subsequent events on the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds&#146; financial statements was completed through October 30, 2009, the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date the financial statements were issued.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">62 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<A name="page_65"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">To the Shareholders and Boards of Directors/Trustees of:</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Diversified Income Strategies Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Senior Floating Rate Fund II, Inc.:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We have audited the accompanying statement of assets and liabilities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including the schedule of investments, of BlackRock Defined Opportunity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Trust as of August 31, 2009, and the related statements of opera-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions and cash flows for the year then ended, the statements of changes in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets for the year then ended and the period January 31, 2008 (com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mencement of operations) to August 31, 2008, and the financial highlights</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the year then ended and the period January 31, 2008 to August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008. We have also audited the accompanying statement of assets and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">liabilities, including the schedule of investments, of BlackRock Diversified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Strategies Fund, Inc. as of August 31, 2009, and the related state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments of operations and cash flows for the year then ended, the state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments of changes in net assets for each of the two years in the period then</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended, and the financial highlights for each of the four years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended and the period January 31, 2005 (commencement of opera-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions) to August 31, 2005. We have also audited the accompanying state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of assets and liabilities, including the schedule of investments, of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Strategies Fund, Inc. as of August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, and the related statements of operations and cash flows for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, the statements of changes in net assets for each of the two</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years in the period then ended, and the financial highlights for each of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">five years in the period then ended. We have also audited the accompany-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing statement of assets and liabilities, including the schedule of invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, of BlackRock Limited Duration Income Trust as of August 31, 2009,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the related statements of operations and cash flows for the year then</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended, the statements of changes in net assets for the year then ended,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the period November 1, 2007 to August 31, 2008, and the year ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2007, and the financial highlights for the year then ended, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period November 1, 2007 to August 31, 2008, and four years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended October 31, 2007. We have also audited the accompanying state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments of assets and liabilities of BlackRock Senior Floating Rate Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock Senior Floating Rate Fund II, Inc. as of August 31, 2009,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the related statements of operations for the year then ended, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">statements of changes in net assets for each of the two years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, and the financial highlights for each of the five years in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period then ended. BlackRock Defined Opportunity Credit Trust, BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Diversified Income Strategies Fund, Inc., BlackRock Floating Rate Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc., BlackRock Limited Duration Income Trust, BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate Fund, Inc., and BlackRock Senior Floating Rate Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">II, Inc. are collectively referred to as the &#147;Funds.&#148; These financial statements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and financial highlights are the responsibility of the Funds&#146; management.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Our responsibility is to express an opinion on these financial statements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and financial highlights based on our audits.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We conducted our audits in accordance with the standards of the Public</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company Accounting Oversight Board (United States). Those standards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that we plan and perform the audit to obtain reasonable assurance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about whether the financial statements and financial highlights are free</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of material misstatement. The Funds are not required to have, nor were we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">engaged to perform, audits of their internal control over financial reporting.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Our audits included consideration of internal control over financial report-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing as a basis for designing audit procedures that are appropriate</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the circumstances, but not for the purpose of expressing an opinion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the effectiveness of the Funds' internal control over financial reporting.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accordingly, we express no such opinion. An audit also includes examining,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a test basis, evidence supporting the amounts and disclosures in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements, assessing the accounting principles used and signifi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cant estimates made by management, as well as evaluating the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statement presentation. Our procedures included confirmation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of securities owned as of August 31, 2009, by correspondence with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">custodian and financial intermediaries; where replies were not received</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from financial intermediaries, we performed other auditing procedures.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We believe that our audits provide a reasonable basis for our opinion.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In our opinion, the financial statements and financial highlights referred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to above present fairly, in all material respects, the financial position of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Defined Opportunity Credit Trust as of August 31, 2009, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">results of its operations and its cash flows for the year then ended, changes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in its net assets for the year then ended and the period January 31, 2008</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to August 31, 2008, and the financial highlights for the year then ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the period January 31, 2008 to August 31, 2008, in conformity with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting principles generally accepted in the United States of America.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, in our opinion, the financial statements and financial high-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lights referred to above present fairly, in all material respects, the finan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cial position of BlackRock Diversified Income Strategies Fund, Inc. as of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009, the results of its operations and its cash flows for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year then ended, changes in its net assets for each of the two years in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period then ended, and the financial highlights for each of the four years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the period then ended and the period January 31, 2005 to August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2005, in conformity with accounting principles generally accepted in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United States of America. Additionally, in our opinion, the financial state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments and financial highlights referred to above present fairly, in all mate-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rial respects, the financial position of BlackRock Floating Rate Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc. as of August 31, 2009, the results of its operations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and its cash flows for the year then ended, changes in its net assets for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each of the two years in the period then ended, and the financial highlights</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for each of the five years in the period then ended, in conformity with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting principles generally accepted in the United States of America</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, in our opinion, the financial statements and financial high-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lights referred to above present fairly, in all material respects, the financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">position of BlackRock Limited Duration Income Trust as of August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, and the results of its operations and its cash flows for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, changes in its net assets for the year then ended, the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November 1, 2007 to August 31, 2008, and the year ended October 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007, and the financial highlights for the year then ended, the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November 1, 2007 to August 31, 2008, and four years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended October 31, 2007, in conformity with accounting principles gen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">erally accepted in the United States of America. Additionally, in our opinion,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial statements and financial highlights referred to above present</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fairly, in all material respects, the financial position of BlackRock Senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Fund, Inc. and BlackRock Senior Floating Rate Fund II, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as of August 31, 2009, and the results of their operations for the year then</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended, changes in their net assets for each of the two years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, and the financial highlights for each of the five years in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period then ended, in conformity with accounting principles generally</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accepted in the United States of America.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, New Jersey</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 30, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 63</FONT></P>

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<TR>
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     <TD width=9%></TD>
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	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Important Tax Information</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
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	<TD align=left colspan=7>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the taxable per share distributions paid by the Funds during the taxable year ended August 31, 2009:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Senior</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DVF</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FRA</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest-Related Dividends for Non-U.S. Residents*&#134;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">September 2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57.78%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.85%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75.25%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70.02%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77.87%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 2008 &#150; December 2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57.78%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.85%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76.83%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69.28%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76.97%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77.47%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57.78%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.85%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76.83%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69.28%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86.42%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">February 2009 &#150; August 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73.21%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100.00%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79.34%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73.88%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86.42%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Federal Obligation Interest**&#134;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#134;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expressed as a percentage of the ordinary income distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">*</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">**</FONT>&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The law varies in each state as to whether and what percentage of dividend income attributable to Federal Obligations is exempt from state income tax. We recommmend
that</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=18%></TD>
     <TD width=13%></TD>
     <TD width=8%></TD>
     <TD width=15%></TD>
     <TD width=21%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Master Portfolio Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Percent of</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset Mix</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">91%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:3px double #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">64</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GEO Specialty Chemicals, Inc. (a)(b)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,151</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15,030</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc. (b)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,206</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,302</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,332</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sirva (b)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,817</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,085</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335,138</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483,689</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd. (a)(b)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,109</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">541,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,024,779</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,050,196</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GEO Specialty Chemicals Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 3/31/15 (a)(c)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,538</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650,024</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 3/31/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,515</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,634,464</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., 8.25%, 5/15/17 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,015</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,060,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellman Holdings, Inc. (c):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Subordinate Note, 10.00%, 1/29/19</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Third Lien Subordinate Note, 5.00%, 1/29/19</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,266</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,132,873</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,478,036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clean Harbors, Inc., 7.63%, 8/15/16 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,604,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Crown Americas LLC, 7.63%, 5/15/17 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,181,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,210</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,203,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,385,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FCE Bank Plc:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 1/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250,882</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.88%, 2/15/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,213</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">403,095</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,238,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.88%, 6/15/13 (d)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,525</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,335,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.38%, 5/01/16 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,078,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,790</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,825,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MGM Mirage, 11.13%, 11/15/17 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,030</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,114,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems, Inc., 4.88%, 1/15/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,429</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,286,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,770</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,751,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPM Holdings, Inc., 10.63%, 9/01/14 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DIRECTV Holdings LLC, 8.38%, 3/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,050,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EchoStar DBS Corp., 6.38%, 10/01/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,002,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,052,500</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,891</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,146,234</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp., 6.73%, 5/01/12 (d)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">277,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Holdings LLC Series B, 4.23%, 8/01/14 (d)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,400</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,024,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,448,109</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Levi Strauss &amp; Co., 8.63%, 4/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,738,194</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc., 7.75%, 5/15/16 (a)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,122,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 8.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,298,359</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawker Beechcraft Acquisition Co. LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit Facility Deposit, 2.28%, 3/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">208,445</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.26%, 3/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,738</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,531,762</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,740,207</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delta Air Lines, Inc., Credit &#150; Linked Deposit Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.11% &#150; 2.28%, 4/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,470</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,312,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Airways Group, Inc., Loan, 2.76%, 3/21/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,475</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">794,152</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,106,740</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,003</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,978,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,446</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,638,787</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Goodyear Tire &amp; Rubber Co., Loan (Second Lien), 2.02%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/30/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,845,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,462,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Automobiles &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Co., Term Loan, 3.50%, 12/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,814</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,571,713</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Building Materials Corp. of America, Term Loan Advance,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.06%, 2/22/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,003</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,827,653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials (Blitz 06-103 GmbH):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 2.56%, 12/04/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">972</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">783,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 2.74%, 12/04/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">969</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,046,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,658,383</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, Term Loan, 4.81%, 12/15/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">924</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">397,499</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nuveen Investments, Inc., First Lien Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.49% &#150; 3.50%, 11/13/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,343</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,901,495</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,298,994</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 5.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland, Inc., Term Loan B, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,044</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,078,619</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brenntag Holding GmbH &amp; Co. KG:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition Facility 1, 2.27% &#150; 2.99%, 1/20/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.27%, 1/20/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,831</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,739,046</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Columbian Chemicals Acquisition LLC/Columbian</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chemicals Merger Sub, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.63%, 3/16/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,715</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,337,388</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.85%, 5/31/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">735</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 4.53%, 10/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">706,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.02%, 4/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,975</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,882,653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan, 6.50%, 5/06/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,625</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,674,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.77%, 7/30/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Original Term Loan (First Lien), 3.52% &#150; 3.75%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/31/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,967</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,094,034</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 65</FONT></P>

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



<!--$$/page=-->
<A name="page_68"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=8%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rockwood Specialties Group, Inc., Term Loan H, 6.00%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/15/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,815</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,826,941</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc., Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,120</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,078,162</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,643,307</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliance Laundry Systems LLC, Term Loan, 2.79% &#150; 4.75%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/27/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,251</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,199,457</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ARAMARK Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Letter of Credit Facility Letter of Credit, 0.22%, 1/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,981</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Term Loan, 2.47%, 1/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,549</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,320,976</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Term Loan B, 7.00%, 4/09/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John Maneely Co., Term Loan, 3.52% &#150; 3.76%, 12/09/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,142</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">895,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kion Group GmbH (fka Neggio Holdings 3 GmbH):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.51%, 12/29/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.76%, 12/29/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,594</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%, 5/12/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,812</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synagro Technologies, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.26% &#150; 2.27%, 4/02/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,716</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,138,841</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp., Term B-2 Loan, 2.64% &#150; 2.65%, 10/24/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,389</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,317,328</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,684,843</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp., Second-Lien Term Loan, 6.26% &#150; 6.37%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/28/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">932,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction Materials &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Headwaters Inc., Term Loan B1 (First Lien), 9.75%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/30/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,083</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,015,310</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co., LP:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B Term Loan, 2.56%, 10/07/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">423</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">411,657</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Term Loan, 6.75%, 4/27/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,242</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,238,433</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graphic Packaging International, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incremental Term Loan, 3.08% &#150; 3.35%, 5/16/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,594</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,529,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Loan, 2.33% &#150; 2.60%, 5/16/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">584</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">562,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canada Tranche C, 2.57%, 11/01/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canada Tranche C-1 Term Loan, 2.57%, 11/01/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,813</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deposit Funded LC Facility, 4.50%, 11/01/10 (b)(f)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59,874</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit Canadian, 2.82% &#150; 5.00%, 11/12/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">99,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit U.S., 2.82% &#150; 4.50%, 11/01/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">314</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">298,691</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B, 2.75%, 11/01/11 (b)(f)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,138</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan, Debtor in Possession, 10.00%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/28/10</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,412</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,426,599</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,861,663</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributors &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Keystone Automotive Operations, Inc., Loan, 3.77% &#150; 5.75%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/12/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,602</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,417,894</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Service Corp., Term Loan, 3.28% &#150; 3.43%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/14/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,950</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,357,393</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education Management LLC, Term Loan C, 2.38%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,413</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,351,023</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,708,416</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LPL Holdings, Inc., Tranche D Term Loan, 2.01% &#150; 2.35%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/28/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">928</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">854,291</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=5%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCM Ireland Holdings Ltd. (Eircom):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.37%, 9/30/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">985</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,283,732</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.62%, 9/30/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">985</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,283,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawaiian Telcom Communications, Inc., Tranche C</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 5/30/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,614</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">979,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,372</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,345,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., Replacement Term Loan, 2.76%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/28/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">605</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">569,883</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Time Warner Telecom Holdings Inc., Term Loan B Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02%, 1/07/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">628</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">612,412</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Finance SL SA, Euro Facility (Second Lien), 7.70%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,875,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,950,576</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generac Acquisition Corp., Term Loan (First Lien), 2.78%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/10/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,107</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,766,628</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electronic Equipment, Instruments &amp; Components &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Flextronics International Ltd.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Closing Date Loan, 2.53% &#150; 2.85%, 10/01/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,507</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,351,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 2.76%, 10/01/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">433</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">388,254</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">L-1 Identity Solutions Operating Co., Term Loan, 6.75%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/05/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,422</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,425,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Safenet, Inc., Loan (Second Lien), 6.27%, 4/12/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045,834</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,211,034</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brock Holdings III, Inc., Term B Loan, 2.85% &#150; 4.50%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/26/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,371</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,083,017</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Loan, 2.68%, 5/04/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,987</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,851,633</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (Second Lien), 6.02%, 5/04/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,246,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MEG Energy Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.60%, 4/02/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,233</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,144,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 2.60%, 4/03/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,209</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,123,207</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Volnay Acquisition Co. I (aka CGG), B1 Term Loan Facility,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.93%, 1/12/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,051</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,019,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,469,567</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.53%, 7/09/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,579,423</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DS Waters of America, Inc., Term Loan, 2.52%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/29/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,383</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,244,361</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DSW Holdings, Inc., Loan, 4.27%, 3/02/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">421,667</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,775</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,837,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">WM. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/16/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">779</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">752,173</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,834,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 2.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dean Foods, Term Loan B, 1.65% &#150; 1.98%, 4/02/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,197</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,142,458</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co., Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.51%, 4/12/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">442</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">444,851</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">610</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">613,984</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,273</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,287,755</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/06/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,677</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,762,905</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,251,953</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bausch &amp; Lomb Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.10% &#150; 3.85%, 4/24/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">247</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">233,938</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Parent Term Loan, 3.85%, 4/24/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">974</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">921,715</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">66 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<A name="page_69"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Dollar Term Loan, 3.26% &#150; 3.61%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/25/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,910</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,711,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Finance LLC),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.26%, 5/20/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,955</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,822,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">476,233</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Iasis Healthcare LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 2.26%, 3/14/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">584</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,832</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 2.26%, 3/14/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,689</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,591,747</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Line of Credit, 0.16%, 3/14/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">157</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,372</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,456,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 7.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical, Inc. (Chronic Care), Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.35%, 9/30/12 (b)(f)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">338,437</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.54%, 7/25/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">423,465</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.51%, 7/25/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,911</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,300,719</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita, Inc., Tranche B-1 Term Loan, 1.77% &#150; 2.10%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/05/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,375</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,279,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fresenius SE:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B1 Term Loan, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,510</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,522,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B2 Term Loan, 6.75%, 7/06/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,584</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,592,339</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,465</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,637,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HealthSouth Corp., Term Loan, 2.52% &#150; 2.53%, 3/10/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,455</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,341,388</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">561</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,308</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vanguard Health Holding Co. II, LLC (Vanguard Health</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">System, Inc.), Replacement Term Loan, 2.51%, 9/23/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,119</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,035,953</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,977,242</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Technology &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunquest Information Systems, Inc. (Misys Hospital Systems,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc.), Term Loan, 3.52% &#150; 3.74%, 10/13/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,474</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,343,569</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCM Merger Inc. (Motor City Casino), Term B Loan, 8.50%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/13/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,713</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,598,401</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Green Valley Ranch Gaming, LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 3.88%, 8/16/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">358,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (New), 2.54% &#150; 4.00%, 2/16/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">471</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-1 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">332,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-2 Loan, 3.50%, 1/28/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,432</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,987,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B-3 Loan, 3.50% &#150; 3.60%, 1/28/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">293,418</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lake at Las Vegas Joint Venture/LLV-1, LLC (b)(f):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First and Second Tranche Term Loan, 12.35% &#150; 15.00%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/22/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,646</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72,916</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Loan Credit-Linked Deposit Account, 12.35%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/22/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">361</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,222</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penn National Gaming, Inc., Term Loan B, 2.01% &#150; 2.21%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/03/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,678</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,546,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 2.88%, 5/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,940</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,445,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 6.35%, 11/05/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,800</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,288,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VML US Finance LLC (aka Venetian Macau), Term B Funded</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project Loan, 6.10%, 5/27/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,620</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,482,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,739,991</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Achievement Corp., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 3/25/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">886</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">752,715</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jarden Corp., Term Loan B3, 3.10%, 1/24/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,224</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,207,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Simmons Bedding Co., Tranche D Term Loan, 10.50%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,269</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,148,216</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,736</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,609,959</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,718,590</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audio Visual Services Group, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 7.10%, 8/28/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,560</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 124,776</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan (First Lien), 2.85%, 2/28/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,350</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">837,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp., US Term Loan, 3.27%, 11/09/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,213</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp., Initial Tranche:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan, 3.01% &#150; 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,816</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,346,359</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.01% &#150; 3.02%, 9/24/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,246</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,861,177</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RedPrairie Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tack-on-Loan, 3.69%, 7/20/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,516</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.44% &#150; 5.25%, 7/20/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">431</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">373,207</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc. (Solar Capital Corp.):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incremental Term Loan, 6.75%, 2/28/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">991,609</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B US Term Loan, 3.95% &#150; 4.09%, 2/28/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">844</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">815,129</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,324,118</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dynegy Holdings, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Letter of Credit Facility Term Loan, 4.02%, 4/02/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">971</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">933,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 4.02%, 4/02/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75,533</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NRG Energy, Inc., Term Loan, 2.01% &#150; 2.35%, 2/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,872</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,651,892</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(TXU), Initial Tranche:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,140</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,946,304</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan, 3.78% &#150; 3.79%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/10/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,291</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,788,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,395,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sequa Corp., Term Loan, 3.65% &#150; 3.88%, 12/03/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,383</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,031,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,713</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,576,113</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Internet Software &amp; Services &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Channel Master Holdings, Inc. (b)(f)(g):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolver, 8.31%, 11/15/04</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">128</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 9.00%, 11/15/04</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,014</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leisure Equipment &amp; Products &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fender Musical Instruments Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Loan, 2.54%, 6/09/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">661</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">528,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Loan, 2.85%, 6/09/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,309</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,047,078</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">True Temper Sports, Inc., Term Loan B, 5.50%, 3/15/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,057</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">810,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,386,008</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp. Term B Facility, 5.25%, 11/20/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,168</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,209,572</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar Financial Corp., Tranche A Term loan, 2.31%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/10</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,843</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,787,959</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Navistar International Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revolving Credit-Linked Deposit, 3.39% &#150; 3.51%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/19/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,333</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,240,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance, 3.51%, 1/19/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,667</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,410,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oshkosh Truck Corp., Term B Loan, 6.60% &#150; 6.64%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/06/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,109</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,099,059</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,537,018</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 22.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AlixPartners, LLP, Tranche C Term Loan, 2.28% &#150; 2.51%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/12/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">423</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">411,386</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alpha Topco Ltd. (Formula One):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 2.51%, 12/31/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">840</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">706,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.51%, 12/31/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility D, 3.76%, 6/30/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">740,000</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 67</FONT></P>

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



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<A name="page_70"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bragg Communications Inc., Term Loan B Tranche Two</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 3.17%, 8/31/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,206</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,168,662</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bresnan Communications, LLC Term Loan B (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.47% &#150; 2.64%, 9/29/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,746</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,672,527</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings Inc. (Cablevision), Incremental Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02% &#150; 2.07%, 3/29/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,432</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,316,972</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalina Marketing Corp., Initial B Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/01/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,744</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,639,103</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,591</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,246,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan (Second Lien), 4.78%, 5/05/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,506,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.27%, 11/05/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,872</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,545,558</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Operating, LLC, New Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.25%, 3/06/14 (b)(f)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,929</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,718,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Term Loan B1, 7.94%, 3/25/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,525</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,521,737</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,338</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,096,401</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gray Television, Inc., Term Loan B, 3.78%, 12/31/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,319</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">951,233</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co. Ltd.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mezzanine, 17.50%, 11/14/14 (e)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,049</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,357,358</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan, 5.26%, 6/12/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,389</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,395,774</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanley-Wood, LLC (FSC Acquisition), Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52% &#150; 2.54%, 3/08/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,227</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939,216</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hargray Acquisition Co./DPC Acquisition LLC/HCP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition LLC, Term Loan (First Lien), 2.72%, 6/27/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,946</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,775,898</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harland Clarke Holdings Corp. (fka Clarke American Corp.),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.76%, 6/30/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,284</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,865,628</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan, 2.28%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,075</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,934,429</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intelsat Corp. (fka PanAmSat Corp.):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2-A Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,177,245</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2-B Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,179,624</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2-C Term Loan, 2.78%, 1/03/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,179,624</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intelsat Subsidiary Holding Co. Ltd., Tranche B Term Loan</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.78%, 7/03/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,962</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,871,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Knology, Inc., Term Loan, 2.51%, 6/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,602</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,521,732</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Media Corp.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 5.50%, 9/28/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,984</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,924,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series E Incremental Loan, 5.50%, 3/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">988</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">978,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local TV Finance, LLC, Term Loan, 2.27%, 5/07/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,234</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">843,408</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCC Iowa LLC (Mediacom Broadband Group), Tranche</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E Term Loan, 6.50%, 11/30/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,394</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,396,947</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCNA Cable Holdings LLC (OneLink Communications),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 8.31%, 3/01/13 (e)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,236</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">469,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediacom Illinois, LLC (fka meidacom Communications,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC), Tranche D Term Loan, 3.96%, 3/31/17</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,496,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,736</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">965,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">515</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NTL Cable Plc, Second Lien, 4.19%, 3/04/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,142</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NV Broadcasting, LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien, 7.77%, 11/03/14 (b)(f)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,250</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, Debtor in Possession, 13.00%, 7/14/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">170</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC, Floating Rate Term Loan, 6.01%, 8/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,468,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NextMedia Operating, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 8.25%, 11/15/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan (1st Lien), 8.25%, 11/15/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,399</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">909,505</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 11.25%, 11/15/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,291</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">394,965</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A Dollar Term Loan, 2.28%, 8/09/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,956</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,751,439</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B Dollar Term Loan, 4.03%, 5/01/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,172</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,785,039</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penton Media, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 5.49%, 2/01/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.51% &#150; 2.74%, 2/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327,463</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=6%></TD>
     <TD width=10%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment), Term</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 2.73%, 6/01/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,243</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,527,145</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,686</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,707,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tribune Co., Debtor in Possession, Term Loan, 9.00%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/07/10</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,105,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UPC Financing Partnership, Facility U, 4.54%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/17</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,200</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,186,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Pan Europe Communications, Term Loan, 3.76%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/16</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,965,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virgin Media Investment Holdings Ltd.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B7 Facility, 5,39%, 9/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">297,977</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B8 Facility, 5.39%, 9/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">131</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,266</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B11 Facility, 5.12%, 7/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">823</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,232,849</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B12 Facility, 5.31%, 7/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,141</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,708,786</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color Press Inc. and World Color (USA) Corp. (fka</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quebecor World Inc.), Advance, 9.00%, 6/30/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,800</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,786,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104,105,646</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essar Steel Algoma Inc. (fka Algoma Steel Inc.), Term</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 2.77%, 6/20/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,434</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,190,399</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brand Energy &amp; Infrastructure Services, Inc. (FR Brand</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition Corp.):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.31% &#150; 6.44%, 2/07/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">828,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Loan (First Lien), 2.32% &#150; 2.63%, 2/07/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">170</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,610</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Energy Transfer Equity, LP, Term Loan, 2.21%, 11/01/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">726,428</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Advance (First Lien), 3.13%, 11/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,217</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,041,271</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.48%, 11/01/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260,291</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mach Gen, LLC, Synthetic Letter of Credit Loan (First Lien),</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%, 2/22/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,696</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USPF Holdings, LLC, Term Loan, 2.02%, 4/11/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">886</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">823,944</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,896,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multiline Retail &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar General Corp., Tranche B-1 Term Loan, 3.01% &#150; 3.24%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/07/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,300</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,237,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC (b)(f):</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">956</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">879,335</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,207</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,110,344</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ScorpionDrilling Ltd., Loan (Second Lien), 8.10%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/08/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,350</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,440,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vulcan Energy Corp. (fka Plains Resources Inc), Term B3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 5.50%, 8/12/11</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,725,938</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,156,117</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 2.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Loan, 2.34% &#150; 2.46%, 12/20/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,437</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,218,319</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 2.31% &#150; 2.65%, 12/20/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,518</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,466,429</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp., Term Loan, 4.06%, 12/22/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,727</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,303,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,988,021</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Personal Products &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Safety Razor Co., LLC Loan (Second Lien), 6.52%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/30/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,650</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,067,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott Co., Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Acquisition Date Term Loan, 2.26% &#150; 2.60%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/18/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,182</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,173,773</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C Acquisition Date Term Loan, 2.26%, 1/18/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">411,652</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,585,425</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">68 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



<!--$$/page=-->
<A name="page_71"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=19%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Professional Services &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Booz Allen Hamilton Inc., Tranche B Term Loan, 7.50%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/31/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 2,374 &#36;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,374,027</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Management &amp; Development &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mattamy Funding Partnership, Loan, 2.63%, 4/11/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,903</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,322,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/20/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">703,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., Term Loan, 2.52% &#150; 2.85%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,513</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,209,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanesbrands Inc., Term B Loan, 5.02% &#150; 5.25%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/05/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045,707</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trading Companies &amp; Distributors &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beacon Sales Acquisition, Inc., Term B Loan, 2.26% &#150; 2.60%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/30/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">953</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">895,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cellular South, Inc.:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.01%, 5/29/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.01% &#150; 4.00%, 5/29/14</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,470</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,403,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel International Finance Ltd., Tranche A, 3.13%,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/01/12</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,475</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,251,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetroPCS Wireless, Inc., New Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56% &#150; 2.75%, 11/03/13</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,226</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,092,634</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ntelos, Term B Advance, 5.75%, 7/31/15</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,496,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,721,484</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 86.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">401,930,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beneficial</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Interests (h)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">J.G. Wentworth LLC Preferred Equity Interests</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">921</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">777,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Other Interests &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">777,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;520,136,694 ) &#151; 95.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">444,055,805</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund, 0.22% (i)(j)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,608,423</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,608,423</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;33,608,423) &#151; 7.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,608,423</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;553,745,117*) &#151; 103.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,664,228</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (3.1)%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,380,271)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 463,283,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 553,814,673</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,012,104</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(85,162,549)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (76,150,445)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=5%></TD>
     <TD width=16%></TD>
     <TD width=2%></TD>
     <TD width=15%></TD>
     <TD width=14%></TD>
     <TD width=4%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Non-income producing security.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Convertible security.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Represents a payment-in-kind security which may pay interest/dividends in addi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional par/shares.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) As a result of bankruptcy proceedings, the company did not repay the principal</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of the security upon maturity.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Other interests represent beneficial interest in liquidation trusts and other reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zation entities and are non-income producing.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=right colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Investments in companies considered to be an affiliate of the Master LLC, for pur-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">poses of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 33,608,423</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 78,227</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash Sweep Series</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD (29,066,037)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;200,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Master LLC compliance purposes, the Master LLC&#146;s industry classifications refer</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to any one or more of the industry sub-classifications used by one or more widely</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recognized market indexes or ratings group indexes, and/or as defined by Master</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC management. This definition may not apply for purposes of this report, which</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may combine industry sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of August 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Depreciation)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">235,838</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09 &#36;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,146)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,057,022</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">745,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,039)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,829,491</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,982,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,979)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,671,767</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,494,500</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche Bank AG 9/16/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(205,357)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Royal Bank</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,265,411</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">889,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Scotland</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9/16/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,093)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">570,971</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CAD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">620,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Barclays Bank PLC 10/28/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,344,123</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,105,000</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/28/09</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,112</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (200,922)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on traded index issues &#151; bought protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Index</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Suisse,</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">June</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LCDX Index</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 3,255</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (290,086)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The maximum potential amount the Fund may pay should a negative credit</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=9>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">event take place as defined under the terms of the agreement. See Note 2 of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Currency Abbreviations:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">CAD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canadian Dollar</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">EUR </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euro</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Pound</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Dollar</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 69</FONT></P>

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



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<A name="page_72"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Master LLC adopted Financial Accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Standards Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Measurements&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, estab-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lishes a framework for measuring fair values and requires additional disclosures</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about the use of fair value measurements. Various inputs are used in determining</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fair value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC&#146;s policy regarding valuation of investments and other significant</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting policies, please refer to Note 1 of the Notes to Financial Statements.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=49%></TD>
     <TD width=28%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Master LLC&#146;s investments:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 483,689</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,608,423</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 1</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,092,112</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,880,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">304,641,971</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">339,073,144</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,332</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,417,361</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97,288,159</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other Interests</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">777,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104,498,972</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;477,664,228</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,692</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (529,700)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(112,385)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,692</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (642,085)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are foreign currency exchange contracts,
unfunded</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan commitments and swaps which are shown at the unrealized appreciation/</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depreciation on the instrument.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=36%></TD>
     <TD width=18%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=5%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Stocks</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bonds</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interests</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15,030</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,430,665</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,445,695</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,647,335)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,647,335)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (592,309)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,806,622</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,214,313</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,773,486)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,773,486)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,302</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,009,670</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,471,693</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 777,120</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,259,785</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,332</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,417,361</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 97,288,159</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 777,120</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;104,498,972</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=3>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized appreciation/depreciation on the
Statement of Operations.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of other financial instruments for unobservable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of August 31, 2008</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation (depreciation)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (112,385)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (112,385)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are unfunded loan commitments.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">70</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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



<!--$$/page=-->
<A name="page_73"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=54%></TD>
     <TD width=37%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statement of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated (cost &#151; &#36;520,136,694)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 444,055,805</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; affiliated (cost &#151; &#36;33,608,423)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,608,423</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency at value (cost &#151; &#36;37,381)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,366</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109,518</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest receivable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,971,146</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments sold receivable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,893,176</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Contributions receivable from investors</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">748,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premium paid</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">521,311</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepaid expenses</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,214</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Principal paydown receivable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,843</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other assets</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189,286</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total assets</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">487,205,035</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">239,614</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290,086</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on unfunded loan commitments</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,385</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments purchased payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,609,445</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory fees payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">367,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deferred income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142,136</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other accrued expenses payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110,093</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other affiliates payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,442</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer&#146;s and Directors&#146; fees payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other liabilities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,602</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total liabilities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,921,078</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 463,283,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Consist of</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investors&#146; capital</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 539,991,233</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(76,707,276)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 463,283,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">71</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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



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<A name="page_74"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=36%></TD>
     <TD width=23%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statement of Operations</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Income</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,329,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income &#151; affiliated</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">278,853</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility and other fees</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">523,623</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,132,102</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,077,764</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting services</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">171,056</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer and Directors</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,947</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custodian</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,697</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Printing</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,302</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Miscellaneous</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">94,264</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses excluding interest expense</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,494,889</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,503,287</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees waived by advisor</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,939)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,491,348</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,640,754</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss) from:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,663,096)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,716,646</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(49,899,586)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,700,804)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(348,501)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,136,888)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unfunded corporate loans</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">259,893</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,926,300)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total realized and unrealized loss</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(66,825,886)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Decrease in Net Assets Resulting from Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (39,185,132)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,640,754</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,966,288</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(49,899,586)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,219,849)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,926,300)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,182,080)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(39,185,132)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,435,641)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Transactions</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Proceeds from contributions</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,763,562</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,053,522</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fair value of withdrawals</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(132,042,492)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(224,197,628)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets derived from capital transactions</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(86,278,930)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(162,144,106)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(125,464,062)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(169,579,747)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">588,748,019</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">758,327,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 463,283,957</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 588,748,019</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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



<!--$$/page=-->
<A name="page_75"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=67%></TD>
     <TD width=17%></TD>
     <TD width=14%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statement of Cash Flows</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Provided by Operating Activities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in net assets resulting from operations</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (39,185,132)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in interest receivable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910,414</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in other assets</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(131,011)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in prepaid expenses</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in investment advisor payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(119,166)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in other affiliates payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,746)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in other liabilities payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,863</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in accrued expenses payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(133,431)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in swaps payable</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,643</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in Officer&#146;s and Directors&#146; fees</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">466</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premium received</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premium paid</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(600,638)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized loss</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,061,566</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amortization of premium and discount on investments</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,115,187)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in-kind Income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(686,595)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Proceeds from sales and paydowns of long-term securities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">263,963,681</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases of long-term securities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(198,389,728)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases of short-term investments</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,542,386)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash provided by operating activities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85,062,666</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Used for Financing Activities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash receipts from borrowings</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash payments on borrowings</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(29,000,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash receipts from contributions</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,446,155</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash payments on withdrawals</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(132,042,492)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash used for financing activities</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(85,596,337)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Impact From Foreign Exchange Fluctuations</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash impact from foreign exchange fluctuations</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,927</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in cash</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(519,744)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash at beginning of year</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">666,628</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash at end of year</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 146,884</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Flow Information</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash paid for interest</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">73</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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



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<A name="page_76"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=26%></TD>
     <TD width=17%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment return</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.23)%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.08)%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.49%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.37%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.78%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and excluding interest expense</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.03%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.44%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.41%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.07%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.22%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.52%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of year (000)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 463,284</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 588,748</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 758,328</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 925,910</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,032,819</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54%</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average loan outstanding during the year (000)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 420</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,255</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,932</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">74</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">1. Organization and Significant Accounting Policies:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC (the &#147;Master LLC&#148;) is registered under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), and is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">organized as a Delaware limited liability company. The Limited Liability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company Agreement permits the Board of Directors (the &#147;Board&#148;) to issue</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nontransferable interests in the Master LLC, subject to certain limitations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC&#146;s financial statements are prepared in conformity with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting principles generally accepted in the United States of America,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which may require the use of management accruals and estimates. Actual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">results may differ from these estimates.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a summary of significant accounting policies followed by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Valuation of Investments: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC values its bond investments on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the basis of last available bid prices or current market quotations provided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by dealers or pricing services selected under the supervision of the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC&#146;s Board. Floating rate loan interests are valued at the mean between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the last available bid prices from one or more brokers or dealers as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">obtained from a pricing service. In determining the value of a particular</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment, pricing services may use certain information with respect to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions in such investments, quotations from dealers, pricing matrixes,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market transactions in comparable investments, various relationships</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">observed in the market between investments and calculated yield meas-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ures based on valuation technology commonly employed in the market for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such investments. Swap agreements are valued utilizing quotes received</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">daily by the Master LLC&#146;s pricing service or through brokers which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derived using daily swap curves and trades of underlying securities. Short-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">term securities with maturities less than 60 days may be valued at amor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tized cost, which approximates fair value.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity investments traded on a recognized securities exchange or the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NASDAQ Global Market System are valued at the last reported sale price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that day or the NASDAQ official closing price, if applicable. For equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on more than one exchange, the last reported sale</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price on the exchange where the stock is primarily traded is used. Equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on a recognized exchange for which there were no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sales on that day are valued at the last available bid price. If no bid price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is available, the prior day&#146;s price will be used, unless it is determined that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such prior day&#146;s price no longer reflects the fair value of the security.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the event that application of these methods of valuation results in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a price for an investment which is deemed not to be representative of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market value of such investment or are not available, the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will be valued by a method approved by the Board as reflecting fair value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Fair Value Assets&#148;). When determining the price for Fair Value Assets, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisor and/or sub-advisor seeks to determine the price that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC might reasonably expect to receive from the current sale of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that asset in an arm&#146;s-length transaction. Fair value determinations shall be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based upon all available factors that the investment advisor and/or sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor deems relevant. The pricing of all Fair Value Assets is subsequently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reported to the Board or a committee thereof.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Transactions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency amounts are translated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into United States dollars on the following basis: (i) market value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment securities, assets and liabilities at the current rate of exchange;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and (ii) purchases and sales of investment securities, income and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses at the rates of exchange prevailing on the respective dates of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such transactions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC reports foreign currency related transactions as compo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nents of realized gains for financial reporting purposes, whereas such com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ponents are treated as ordinary income for federal income tax purposes.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Floating Rate Loans: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may invest in floating rate loans,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are generally non-investment grade, made by banks, other financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutions and privately and publicly offered corporations. Floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loans are senior in the debt structure of a corporation. Floating rate loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally pay interest at rates that are periodically determined by reference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to a base lending rate plus a premium. The base lending rates are gener-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ally (i) the lending rate offered by one or more European banks, such as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more US banks or (iii) the certificate of deposit rate. The Master LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consider these investments to be investments in debt securities for pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">poses of their investment policies.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC earns and/or pays facility and other fees on floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loans. Other fees earned/paid include commitment, amendment, consent,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions and prepayment penalty fees. Facility, amendment and con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sent fees are typically amortized as premium and/or accreted as discount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">over the term of the loan. Commitment, commission and various other fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded as income. Prepayment penalty fees are recognized on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accrual basis. When the Master LLC buys a floating rate loan it may receive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a facility fee and when it sells a floating rate loan it may pay a facility fee.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On an ongoing basis, the Master LLC may receive a commitment fee based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the undrawn portion of the underlying line of credit portion of a floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate loan. In certain circumstances, the Master LLC may receive a prepay-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment penalty fee upon the prepayment of a floating rate loan by a bor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rower. Other fees received by the Master LLC may include covenant waiver</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees and covenant modification fees.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may invest in multiple series or tranches of a loan.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A different series or tranche may have varying terms and carry different</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">associated risks.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating rate loans are usually freely callable at the issuer&#146;s option. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC may invest in such loans in the form of participations in loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Participations&#148;) and assignments of all or a portion of loans from third</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parties. Participations typically will result in the Master LLC having a con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tractual relationship only with the lender, not with the borrower. The Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC will have the right to receive payments of principal, interest and any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees to which it is entitled only from the lender selling the Participation and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">only upon receipt by the lender of the payments from the borrower.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 75</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with purchasing Participations, the Master LLC generally will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have no right to enforce compliance by the borrower with the terms of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan agreement relating to the loans, nor any rights of offset against the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">borrower, and the Master LLC may not benefit directly from any collateral</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">supporting the loan in which it has purchased the Participation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As a result, the Master LLC will assume the credit risk of both the borrower</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the lender that is selling the Participation. The Master LLC&#146;s invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments in loan participation interests involve the risk of insolvency of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial intermediaries who are parties to the transactions. In the event of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the insolvency of the lender selling the Participation, the Master LLC may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be treated as general creditor of the lender and may not benefit from any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">offset between the lender and the borrower.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Segregation and Collateralization: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In cases in which the 1940 Act and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the interpretive positions of the Securities and Exchange Commission</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;SEC&#148;) require that the Master LLC either delivers collateral or segregates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in connection with certain investments (e.g., swaps and foreign cur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rency exchange contracts) the Master LLC will, consistent with SEC rules</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or certain interpretive letters issued by the SEC, segregate collateral or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">designate on its books and records cash or other liquid securities having a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value at least equal to the amount that would otherwise be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">required to be physically segregated. Furthermore, based on requirements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and agreements with certain exchanges and third party broker-dealers,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each party has requirements to deliver/deposit securities as collateral for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain investments (e.g., swaps). As part of these agreements, when the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of these investments achieves a previously agreed upon value (mini-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mum transfer amount), each party may be required to deliver additional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">collateral.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Transactions and Investment Income: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For financial reporting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purposes, with respect to the Master LLC, investment transactions are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recorded on the dates the trans-actions are entered into (the trade dates).</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gains and losses on security transactions are determined on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">identified cost basis. Dividend income is recorded on the ex-dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dates. Dividends from foreign securities where the ex-dividend date</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may have passed are subsequently recorded when the Master LLC has</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determined the ex-dividend date. Interest income is recognized on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accrual basis. The Master LLC amortizes all premiums and discounts on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">debt securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Income Taxes: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC is classified as a partnership for federal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax purposes. As such, each investor in the Master LLC is treated as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">owner of its proportionate share of the net assets, income, expenses and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized and unrealized gains and losses of the Master LLC. Therefore, no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">federal income tax provision is required. It is intended that the Master LLC&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets will be managed so an investor in the Master LLC can satisfy the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requirements of Subchapter M of the Internal Revenue Code.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC files US federal and various state and local tax returns.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No income tax returns are currently under examination. The statute of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">limitations on the Master LLC&#146;s US federal tax returns remains open for</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each of the four years ended August 31, 2009. The statutes of limitations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the Master LLC&#146;s state and local tax returns may remain open for an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">additional year depending upon the jurisdiction.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Recent Accounting Pronouncement: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In June 2009, Statement of Financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting Standards No. 166, &#147;Accounting for Transfers of Financial Assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; an amendment of FASB Statement No. 140&#148; (&#147;FAS 166&#148;), was issued.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FAS 166 is intended to improve the relevance, representational faithfulness</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and comparability of the information that a reporting entity provides in its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements about a transfer of financial assets; the effects of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfer on its financial position, financial performance, and cash flows;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a transferor&#146;s continuing involvement, if any, in transferred financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets. FAS 166 is effective for financial statements issued for fiscal years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and interim periods beginning after November 15, 2009. Earlier application</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is prohibited. The recognition and measurement provisions of FAS 166</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">must be applied to transfers occurring on or after the effective date.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, the disclosure provisions of FAS 166 should be applied to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfers that occurred both before and after the effective date of FAS 166.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The impact of FAS 166 on the Master LLC&#146;s financial statement disclo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sures, if any, is currently being assessed.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Other: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses directly related to the Master LLC are charged to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC. Other operating expenses shared by several funds are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prorated among those funds on the basis of relative net assets or other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">appropriate methods.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">2. Derivative Financial Instruments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may engage in various portfolio investment strategies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">both to increase the return of the Master LLC and to economically hedge,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or protect, their exposure to certain risks such as credit risk, equity risk,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rate risk and foreign currency exchange rate risk. Losses may arise</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if the value of the contract decreases due to an unfavorable change in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the underlying security or if the counter-party does not perform</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under the contract. The Master LLC may mitigate counterparty risk through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">master netting agreements included within an International Swap and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Derivatives Association, Inc. (&#147;ISDA&#148;) Master Agreement between the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC and each of its counterparties. The ISDA Master Agreement allows the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC to offset with its counterparty certain derivative financial instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#146; payables and/or receivables with collateral held with each counter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party. The amount of collateral moved to/from applicable counterparties is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based upon minimum transfer amounts of up to &#36;500,000. To the extent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts due to the Master LLC from its counterparties are not fully collat-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">eralized contractually or otherwise, the Master LLC bears the risk of loss</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from the counterparty non-performance. See Note 1 &#147;Segregation and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Collateralization&#148; for information with respect to collateral practices.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC&#146;s maximum risk of loss from counterparty credit risk on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">over-the-counter derivatives is generally the aggregate unrealized gain in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">excess of any collateral pledged by the counterparty to the Master LLC.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain ISDA Master Agreements allow counterparties to over-the-counter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derivatives to terminate derivative contracts prior to maturity in the event</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">76 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC&#146;s net assets decline by a stated percentage or the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC fails to meet the terms of its ISDA Master Agreements, which would</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cause the Master LLC to accelerate payment of any net liability owed to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counterparty.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Exchange Contracts: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may enter into for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">eign currency exchange contracts as an economic hedge against either</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific transactions or portfolio positions (foreign currency exchange rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk). A foreign currency exchange contract is an agreement between two</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parties to buy and sell a currency at a set exchange rate on a future date.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts, when used by the Master LLC, help</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to manage the overall exposure to the foreign currency backing some of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the investments held by the Master LLC. The contract is marked-to-market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">daily and the change in market value is recorded by the Master LLC as an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unrealized gain or loss. When the contract is closed, the Master LLC records</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a realized gain or loss equal to the difference between the value at the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">time it was opened and the value at the time it was closed. The use of for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">eign currency exchange contracts involves the risk that counterparties may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not meet the terms of the agreement or unfavorable movements in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of a foreign currency relative to the US dollar.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Swaps: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may enter into swap agreements, in which the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC and a counterparty agree to make periodic net payments on a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specified notional amount. These periodic payments received or made by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC are recorded in the accompanying Statement of Operations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as realized gains or losses, respectively. Swaps are marked-to-market daily</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and changes in value are recorded as unrealized appreciation (deprecia-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion). When the swap is terminated, the Master LLC will record a realized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gain or loss equal to the difference between the proceeds from (or cost</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of) the closing transaction and the Master LLC&#146;s basis in the contract, if</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any. Swap transactions involve, to varying degrees, elements of interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate, credit and market risk in excess of the amounts recognized on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Assets and Liabilities. Such risks involve the possibility that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">there will be no liquid market for these agreements, that the counterparty</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the agreements may default on its obligation to perform or disagree</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as to the meaning of the contractual terms in the agreements, and that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">there may be unfavorable changes in interest rates and/or market values</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">associated with these transactions.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps &#151; The Master LLC may enter into credit default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swaps to manage its exposure to the market or certain sectors of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market, to reduce its risk exposure to defaults of corporate and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sovereign issuers or to create exposure to corporate and/or sovereign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuers to which it is not otherwise exposed (credit risk). The Master LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enters into credit default agreements to provide a measure of protec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion against the default of an issuer (as buyer of protection) and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gain credit exposure to an issuer to which it is not otherwise exposed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(as seller of protection). The Master LLC may either buy or sell (write)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit default swaps on single-name issuers (corporate or sovereign)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or traded indexes. Credit default swaps on single-name issuers are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements in which the buyer pays fixed periodic payments to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seller in consideration for a guarantee from the seller to make a</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific payment should a negative credit event take place (e.g., bank-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ruptcy, failure to pay, obligation accelerators, repudiation, moratorium or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">restructuring). Credit default swaps on traded indexes are agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which the buyer pays fixed periodic payments to the seller in consid-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">eration for a guarantee from the seller to make a specific payment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">should a write-down, principal or interest shortfall or default of all or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">individual underlying securities included in the index occurs. As a buyer,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC will either receive from the seller an amount equal to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the notional amount of the swap and deliver the referenced security or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underlying securities comprising of an index or receive a net settlement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of cash equal to the notional amount of the swap less the recovery</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the security or underlying securities comprising of an index. As</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a seller (writer), the Master LLC will either pay the buyer an amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equal to the notional amount of the swap and take delivery of the refer-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enced security or underlying securities comprising of an index or pay a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net settlement of cash equal to the notional amount of the swap less</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the recovery value of the security or underlying securities comprising</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of an index.</FONT></P>
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 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivatives Not Accounted for as Hedging Instruments under Financial</FONT></B>&nbsp;</TD>
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 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Standards Board Statement of Financial Accounting Standards</FONT></B>&nbsp;</TD>
</TR>
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	<TD bgcolor="#f2f2f2" align=left colspan=7 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">No. 133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148;</FONT></B>&nbsp;</TD>
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	<TD bgcolor="#f2f2f2" align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Values of Derivative Instruments as of August 31, 2009*</FONT></B></TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset Derivatives</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability Derivatives</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statement</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statement</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Assets and</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Assets and</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Location</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Location</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">appreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on foreign</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on foreign</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">curency</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;38,692</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;239,614</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depreciation</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on swaps</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290,086</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;38,692</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;529,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* For open derivative instruments as of August 31, 2009, see the Schedule</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Investments, which is also indicative of activity for the year ended</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left colspan=7>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Effect of Derivative Instruments on the Statement of Operations</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B></TD>
</TR>
<TR>
	<TD colspan=7><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized Gain (Loss) From Derivatives Recognized in Income</FONT></B></TD>
</TR>
<TR>
	<TD colspan=7><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=7>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Foreign</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=7>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=7>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Exchange</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Swaps</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 719,893</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 719,893</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,864</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 719,893</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,864</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 766,757</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 77</FONT></P>

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



<!--$$/page=-->
<A name="page_80"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=24%></TD>
     <TD width=37%></TD>
     <TD width=19%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Change in Unrealized Appreciation/Depreciation</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">on Derivatives Recognized in Income</FONT></B></TD>
</TR>
<TR>
	<TD colspan=4><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Foreign</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center bgcolor="#f2f2f2" colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Exchange</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Swaps</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign exchange</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (858,335)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (858,335)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (348,501)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (348,501)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (858,335)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (348,501)</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,206,836)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">3. Transactions with Affiliates:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The PNC Financial Services Group, Inc. (&#147;PNC&#148;) and Bank of America</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (&#147;BAC&#148;) are the largest stockholders of BlackRock, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BlackRock&#148;). BAC became a stockholder of BlackRock following its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">acquisition of Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) on January 1,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009. Prior to that date, both PNC and Merrill Lynch were considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affiliates of the Master LLC under the 1940 Act. Subsequent to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">acquisition, PNC remains an affiliate, but due to the restructuring of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Merrill Lynch&#146;s ownership interest of BlackRock, BAC is not deemed to be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an affiliate under the 1940 Act.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC entered into an Investment Advisory Agreement with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC (the &#147;Manager&#148;), the Master LLC&#146;s investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor, an indirect, wholly owned subsidiary of BlackRock, to provide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory and administration services.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager is responsible for the management of the Master LLC&#146;s portfo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lio and provides the necessary personnel, facilities, equipment and certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other services necessary to the operations of the Master LLC. For such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services, the Master LLC pays the Manager a monthly fee at an annual rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 0.95% of the average daily value of the Master LLC&#146;s net assets.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has entered into a separate sub-advisory agreement with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial Management, Inc. (&#147;BFM&#148;), an affiliate the Manager,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under which the Manager pays BFM for services it provides, monthly fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that is a percentage of the investment advisory fee paid by the Master LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Manager.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has agreed to waive its advisory fee by the amount of invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment advisory fees the Master LLC pays to the Manager indirectly through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its investment in affiliated money market funds. This amount is shown as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees waived by advisor in the Statement of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the Master LLC reimbursed the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisor &#36;8,441 for certain accounting services, which are included in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting services in the Statement of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain officers and/or directors of the Master LLC are officers and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directors of BlackRock or its affiliates. The Master LLC reimburses the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager for compensation to the Master LLC&#146;s Chief Compliance Officer.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">4. Investments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases and sales (including paydowns) of investments, excluding</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term securities, for the year ended August 31, 2009 were</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;196,913,499 and &#36;259,646,559, respectively.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">5. Market and Credit Risk:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the normal course of business, the Master LLC invests in securities and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enters into transactions where risks exist due to fluctuations in the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(market risk) or failure of the issuer of a security to meet all its obligations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(credit risk). The value of securities held by the Master LLC may decline</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in response to certain events, including those directly involving the issuers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">whose securities are owned by the Master LLC; conditions affecting the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">general economy; overall market changes; local, regional or global political,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">social or economic instability; and currency and interest rate and price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fluctuations. Similar to credit risk, the Master LLC may be exposed to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counterparty risk, or the risk that an entity with which the Master LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">has unsettled or open transactions may default. Financial assets, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">potentially expose the Master LLC to credit and counterparty risks, consist</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principally of investments and cash due from counterparties. The extent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Master LLCs&#146; exposure to credit and counterparty risks with respect</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to these financial assets is approximated by their value recorded in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLCs&#146; Statement of Assets and Liabilities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">6. Commitments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC may invest in floating rate loans. In connection with these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, the Master LLC may also enter into unfunded corporate loan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;commitments&#148;). Commitments may obligate the Master LLC to furnish</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">temporary financing to a borrower until permanent financing can be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">arranged. In connection with these commitments, the Master LLC earns a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commitment fee, typically set as a percentage of the commitment amount.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Such fee income, which is classified in the Statement of Operations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as facility and other fees, is recognized ratably over the commitment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period. As of August 31, 2009 the Master LLC had the following unfunded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan commitments:</FONT></P>
<TABLE border=0 cellspacing=0>
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     <TD width=47%></TD>
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     <TD width=18%></TD></TR>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unfunded</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Underlying</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commitment</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Borrower</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 562</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit Corp.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,039</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 971</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#f2f2f2" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vought Aircraft Industries, Inc.</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,185</FONT>&nbsp;</TD>
	<TD bgcolor="#f2f2f2" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,043</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">7. Short-Term Borrowings:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Master LLC, along with certain other funds managed by the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and its affiliates, is a party to a &#36;500 million credit agreement with a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">group of lenders, which expired November 2008 and was subsequently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">renewed until November 2009. The Master LLC may borrow under the</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">78 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (concluded) </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate
LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit agreement to fund shareholder redemptions and for other lawful</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purposes other than for leverage. The Master LLC may borrow up to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">maximum amount allowable under the Master LLC&#146;s current Prospectus</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Statement of Additional Information, subject to various other legal,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regulatory or contractual limits. The Master LLC paid its pro rata share of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.02% upfront fee on the aggregate commitment amount based on its net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets as of October 31, 2008. The Master LLC pays a commitment fee of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.08% per annum based on the Master LLC&#146;s pro rata share of the unused</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">portion of the credit agreement, which is included in miscellaneous in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Operations. Amounts borrowed under the credit agreement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bear interest at a rate equal to the higher of (a) federal funds effective rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and (b) reserve adjusted one month LIBOR, plus, in each case, the higher</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of (i) 1.50% and (ii) 50% of the CDX Index (as defined in the credit agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment) in effect from time to time. For the year ended August 31, 2009 the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">daily weighted average interest rate was 2.00%.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">8. Subsequent Events:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management has evaluated the impact of all subsequent events on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC through October 30, 2009, the date the financial statements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were issued, and has determined that there were no subsequent events</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requiring adjustment or disclosure in the financial statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 79</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master Senior
Floating Rate LLC</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">To the Investors and Board of Directors of Master Senior</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Floating Rate LLC:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We have audited the accompanying statement of assets and liabilities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including the schedule of investments, of Master Senior Floating Rate LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(the &#147;Master LLC&#148;) as of August 31, 2009, and the related statement of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operations for the year then ended, the statements of changes in net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets for each of the two years in the period then ended, and the financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">highlights for each of the five years in the period then ended. These finan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cial statements and financial highlights are the responsibility of the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC&#146;s management. Our responsibility is to express an opinion on these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements and financial highlights based on our audit.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We conducted our audits in accordance with the standards of the Public</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company Accounting Oversight Board (United States). Those standards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that we plan and perform the audit to obtain reasonable assurance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about whether the financial statements and financial highlights are free of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">material misstatement. The Master LLC is not required to have, nor were we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">engaged to perform, an audit of its internal control over financial reporting.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Our audits included consideration of internal control over financial report-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing as a basis for designing audit procedures that are appropriate in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, but not for the purpose of expressing an opinion on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">effectiveness of the Master LLC&#146;s internal control over financial reporting.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accordingly, we express no such opinion. An audit also includes examining,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a test basis, evidence supporting the amounts and disclosures in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements, assessing the accounting principles used and signifi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cant estimates made by management, as well as evaluating the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statement presentation. Our procedures included confirmation of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities owned as of August 31, 2009, by correspondence with the cus-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">todian and financial intermediaries; where replies were not received from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial intermediaries, we performed other auditing procedures. We</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">believe that our audits provide a reasonable basis for our opinion.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In our opinion, the financial statements and financial highlights referred to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">above present fairly, in all material respects, the financial position of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Senior Floating Rate LLC as of August 31, 2009, the results of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operations for the year then ended, the changes in its net assets for each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the two years in the period then ended, and the financial highlights for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each of the five years in the period then ended, in conformity with account-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing principles generally accepted in the United States of America.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche LLP</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, New Jersey</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 30, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">80 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Directors or the Board of Trustees, as the case may be (each,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a &#147;Board,&#148; and collectively, the &#147;Boards,&#148; and the members of which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred to as &#147;Board Members&#148;) of each of BlackRock Defined Opportunity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Trust (&#147;BHL&#148;), BlackRock Diversified Income Strategies Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;DVF&#148;), BlackRock Floating Rate Income Strategies Fund, Inc. (&#147;FRA&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Limited Duration Income Trust (&#147;BLW,&#148; and together with BHL,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF, and FRA, each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;) and Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate Fund LLC (the &#147;Master LLC&#148;) met on April 14, 2009</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and May 28 &#150; 29, 2009 to consider the approval of its respective fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory agreement (each, an &#147;Advisory Agreement&#148;) with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC (the &#147;Manager&#148;), each fund&#146;s investment advisor.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of the Funds and the Master LLC also considered the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approval of the sub-advisory agreement (each, a &#147;Sub-Advisory Agreement&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">between each such Fund or the Master LLC, as applicable, the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock Financial Management, Inc. (the &#147;Sub-Advisor&#148;). BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate Fund, Inc. (&#147;Senior Floating Rate&#148;) and BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate Fund II, Inc. (&#147;Senior Floating Rate II,&#148; and together</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with Senior Floating Rate, each, a &#147;Feeder Fund&#148; and together, the &#147;Feeder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds&#148;) currently invest substantially all of their investable assets in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC; accordingly, the Boards of each of the Feeder Funds also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">considered the approval of the Advisory Agreement and the Sub-Advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreement between the Master LLC, the Manager and the Sub-Advisor. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Feeder Funds do not require investment advisory services because all of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their investments are made at the Master LLC level.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager and the Sub-Advisor are referred to herein as &#147;BlackRock.&#148;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Advisory Agreements and the Sub-Advisory Agreements are referred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to herein as the &#147;Agreements.&#148; Unless otherwise indicated, references to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actions taken by the &#147;Board&#148; or the &#147;Boards&#148; shall mean each Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">acting independently with regard to its respective fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Activities and Composition of the Boards</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board consists of twelve individuals, ten of whom are not &#147;interested</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">persons&#148; of any of the Funds, the Feeder Funds or the Master LLC as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">defined in the Investment Company Act of 1940, as amended (the &#147;1940</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Act&#148;) (the &#147;Independent Board Members&#148;). The Board Members of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fund are responsible for the oversight of the operations of such fund and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">perform the various duties imposed on the directors of investment com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">panies by the 1940 Act. The Independent Board Members have retained</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">independent legal counsel to assist them in connection with their duties.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Chairman of each Board is an Independent Board Member. Each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board has established five standing committees: an Audit Committee,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Governance and Nominating Committee, a Compliance Committee,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Performance Oversight Committee and an Executive Committee, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of which is composed of Independent Board Members (except for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Executive Committee, which has one interested Board Member) and is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chaired by an Independent Board Member. In addition, each Board has</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">established an Ad Hoc Committee on Auction Market Preferred Shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">The Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the 1940 Act, each Board is required to consider the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">continuation of the Agreements on an annual basis. In connection</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with this process, each Board assessed, among other things, the nature,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">scope and quality of the services provided to its respective fund by the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">personnel of BlackRock and its affiliates, including investment manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment, administrative and shareholder services, oversight of fund account-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing and custody, marketing services and assistance in meeting applicable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">legal and regulatory requirements.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Throughout the year, the Boards, acting directly and through their com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mittees, consider at each of their meetings factors that are relevant to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their annual consideration of the renewal of the Agreements, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the services and support provided by BlackRock to the funds and their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders. Among the matters the Boards considered were: (a) invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance for one-, three- and five-year periods, as applicable,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">against peer funds, and applicable benchmarks, if any, as well as senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management and portfolio managers&#146; analysis of the reasons for any out-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance or underperformance against its peers; (b) fees, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory fees, administration fees with respect to the Feeder Funds, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other amounts paid to BlackRock and its affiliates by the funds for services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such as call center and fund accounting, and, in the case of the Feeder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds, transfer agency, marketing and distribution; (c) fund operating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses; (d) the resources devoted to, and compliance reports relating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to, the funds&#146; investment objectives, policies and restrictions, (e) the funds&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compliance with their Codes of Ethics and compliance policies and proce-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dures; (f) the nature, cost and character of non-investment management</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided by BlackRock and its affiliates; (g) BlackRock&#146;s and other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">service providers&#146; internal controls; (h) BlackRock&#146;s implementation of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">proxy voting policies approved by the Boards; (i) execution quality of port-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">folio transactions; (j) BlackRock&#146;s implementation of the funds&#146; valuation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and liquidity procedures; and (k) periodic updates on BlackRock&#146;s business.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Board Considerations in Approving the Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">The Approval Process: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to the April 14, 2009 meeting, each Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requested and received materials specifically relating to the Agreements.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board is engaged in an ongoing process with BlackRock to continu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ously review the nature and scope of the information provided to better</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assist its deliberations. The materials provided in connection with the April</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">meeting included (a) information independently compiled and prepared by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lipper, Inc. (&#147;Lipper&#148;) on Fund and Feeder Fund fees and expenses, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the investment performance of each Fund and Feeder Fund as compared</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with a peer group of funds as determined by Lipper (collectively, &#147;Peers&#148;);</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) information on the profitability of the Agreements to BlackRock and a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussion of fall-out benefits to BlackRock and its affiliates and significant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders; (c) a general analysis provided by BlackRock concerning</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory fees charged to other clients, such as institutional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">clients and open-end funds, under similar investment mandates, as well</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the performance of such other clients; (d) the impact of economies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of scale; (e) a summary of aggregate amounts paid by each Fund, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Feeder Fund and the Master LLC to BlackRock and (f) an internal com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parison of management fees classified by Lipper, if applicable.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on April 14, 2009, each Board reviewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">materials relating to its consideration of the Agreements. As a result of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussions that occurred during the April 14, 2009 meeting, the Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">presented BlackRock with questions and requests for additional informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion and BlackRock responded to these requests with additional written</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information in advance of the May 28 &#150; 29, 2009 Board meeting.</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 81</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on May 28 &#150; 29, 2009, each Board, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Independent Board Members, unanimously approved the continuation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Advisory Agreement between the Manager and its Fund or the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC, as applicable, and the Sub-Advisory Agreement between its Fund or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC, as applicable, the Manager and the Sub-Advisor, each for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a one-year term ending June 30, 2010. The Board of Directors of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Feeder Fund, including the Independent Board Members, also considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the continuation of the Agreements with respect to the Master LLC and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">found the Agreements to be satisfactory. The Boards considered all factors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">they believed relevant with respect to the Funds and the Master LLC, includ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing, among other factors: (a) the nature, extent and quality of the services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provided by BlackRock; (b) the investment performance of the Funds, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Feeder Funds and BlackRock portfolio management; (c) the advisory fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the cost of the services and profits to be realized by BlackRock and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain affiliates from the relationship with the Funds, the Feeder Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the Master LLC; (d) economies of scale; and (e) other factors.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board also considered other matters it deemed important to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approval process, such as services related to the valuation and pricing of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its respective Fund&#146;s or the Master LLC&#146;s portfolio holdings, as applicable,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">direct and indirect benefits to BlackRock and its affiliates and significant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders from their relationship with such Fund, the Feeder Funds or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC and advice from independent legal counsel with respect</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the review process and materials submitted for the Board&#146;s review. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards noted the willingness of BlackRock personnel to engage in open,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">candid discussions with the Boards. The Boards did not identify any par-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ticular information as controlling, and each Board Member may have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">attributed different weights to the various items considered.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">A. Nature, Extent and Quality of the Services: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members, reviewed the nature, extent and quality of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided by BlackRock, including the investment advisory services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the resulting performance of its respective Fund, Feeder Fund, or the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC, as applicable. Throughout the year, each Board compared its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Fund&#146;s or Feeder Fund&#146;s performance to the performance of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">comparable group of closed-end funds, and the performance of at least</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">one relevant benchmark, if any. The Boards met with BlackRock&#146;s senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management personnel responsible for investment operations, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the senior investment officers. Each Board also reviewed the materials pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">vided by its respective Fund&#146;s or the Master LLC&#146;s portfolio management</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">team discussing such fund&#146;s performance and such fund&#146;s investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">objective, strategies and outlook.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board considered, among other factors, the number, education and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">experience of BlackRock&#146;s investment personnel generally and its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Fund&#146;s or the Master LLC&#146;s portfolio management team, investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by portfolio managers in the funds they manage, BlackRock&#146;s portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trading capabilities, BlackRock&#146;s use of technology, BlackRock&#146;s commit-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment to compliance and BlackRock&#146;s approach to training and retaining</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">portfolio managers and other research, advisory and management per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sonnel. Each Board also reviewed a general description of BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compensation structure with respect to its respective Fund&#146;s or the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC&#146;s portfolio management team and BlackRock&#146;s ability to attract and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">retain high-quality talent.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition to advisory services, each Board considered the quality of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administrative and non-investment advisory services provided to its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Fund, Feeder Fund or the Master LLC. BlackRock and its affiliates and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">significant shareholders provide the Funds, the Feeder Funds and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC with certain administrative services, in the case of the Feeder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds, transfer agency and shareholder services, and other services (in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">addition to any such services provided to the funds by third parties) and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">officers and other personnel as are necessary for the operations of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds. In addition to investment advisory services, BlackRock and its affili-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ates provide the Funds, the Feeder Funds and the Master LLC with other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services, including (i) preparing disclosure documents, such as the pros-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pectus and the statement of additional information in connection with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">initial public offering and periodic shareholder reports; (ii) preparing com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">munications with analysts to support secondary market trading of the funds;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(iii) assisting with daily accounting and pricing; (iv) preparing periodic filings</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with regulators and stock exchanges; (v) overseeing and coordinating the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">activities of other service providers; (vi) organizing Board meetings and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">preparing the materials for such Board meetings; (vii) providing legal and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compliance support; and (viii) performing other administrative functions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">necessary for the operation of the funds, such as tax reporting, fulfilling reg-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ulatory filing requirements, and call center services. The Boards reviewed the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">structure and duties of BlackRock&#146;s fund administration, accounting, legal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and compliance departments and considered BlackRock&#146;s policies and pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cedures for assuring compliance with applicable laws and regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">B. The Investment Performance of the Funds and BlackRock: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including its Independent Board Members, also reviewed and considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the performance history of its respective Fund, Feeder Fund, or the Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC, as applicable. In preparation for the April 14, 2009 meeting, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board was provided with reports, independently prepared by Lipper, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">included a comprehensive analysis of its respective Fund&#146;s or Feeder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s performance. The Boards also reviewed a narrative and statistical</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">analysis of the Lipper data that was prepared by BlackRock, which ana-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lyzed various factors that affect Lipper&#146;s rankings. In connection with its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">review, each Board received and reviewed information regarding the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance of its respective Fund or Feeder Fund as compared to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a representative group of similar funds as determined by Lipper and to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">all funds in such Fund&#146;s or Feeder Fund&#146;s applicable Lipper category. Each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board was provided with a description of the methodology used by Lipper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to select peer funds. Each Board regularly reviews the performance of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Fund, Feeder Fund, or the Master LLC throughout the year.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of FRA, BLW and Senior Floating Rate I noted that, in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">general, FRA, BLW and Senior Floating Rate I performed better than their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Peers in that the performance of each of FRA, BLW and Senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate I was at or above the median of its respective Lipper perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance universe in each of the one-, three- and five-year periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BHL noted that, in general, BHL performed better than its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peers in that BHL&#146;s performance was at or above the median of its Lipper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance universe in the since inception period reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Senior Floating Rate II noted that although Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate II underperformed its Peers in at least two of the one-, three- and five-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year periods reported, such underperformance was not greater than 10% of</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">82 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the median return of its Peers for any of the periods. The Board concluded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that BlackRock was committed to providing the resources necessary to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assist the portfolio managers and to continue improving Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate II&#146;s performance. Based on its review, the Board generally was satis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fied with BlackRock&#146;s efforts to manage Senior Floating Rate II.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of DVF noted that DVF performed below the median of its Lipper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance universe in the one-year, three-year and since inception peri-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ods reported. The Board and BlackRock reviewed the reasons for DVF&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underperformance during these periods compared with its Peers. The Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">was informed that, among other things, DVF&#146;s credit allocation for most of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the period was overweight CCC and B and underweight BB. Since lower</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality credits underperformed higher quality during the period, this nega-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tively impacted performance.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For DVF, the Board and BlackRock discussed BlackRock&#146;s commitment to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">providing the resources necessary to assist the portfolio managers and to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">improve DVF&#146;s performance.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">C. Consideration of the Advisory Fees and the Cost of the Services</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">and Profits to be Realized by BlackRock and its Affiliates from their</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Relationship with the Fund: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members, reviewed its respective Fund&#146;s or the Master LLC&#146;s contractual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory fee rates compared with the other funds in its Lipper category.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board also compared its respective Fund&#146;s or the Feeder Funds&#146; total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses, as well as actual management fees, to those of other compa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rable funds. Each Board considered the services provided and the fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">charged by BlackRock to other types of clients with similar investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mandates, including separately managed institutional accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards received and reviewed statements relating to BlackRock&#146;s finan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cial condition and profitability with respect to the services it provided the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds and the Master LLC. The Boards were also provided with a profitability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">analysis that detailed the revenues earned and the expenses incurred by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock for services provided to the Funds, the Feeder Funds and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC. The Boards reviewed BlackRock&#146;s profitability with respect to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds and the Master LLC and other funds the Boards currently oversee for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the year ended December 31, 2008 compared to available aggregate prof-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">itability data provided for the year ended December 31, 2007. The Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reviewed BlackRock&#146;s profitability with respect to other fund complexes man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">aged by the Manager and/or its affiliates. The Boards reviewed BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assumptions and methodology of allocating expenses in the profitability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">analysis, noting the inherent limitations in allocating costs among various</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory products. The Boards recognized that profitability may be affected</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by numerous factors including, among other things, fee waivers by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager, the types of funds managed, expense allocations and business</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mix, and therefore comparability of profitability is somewhat limited.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that, in general, individual fund or product line profitability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of other advisors is not publicly available. Nevertheless, to the extent such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information is available, the Boards considered BlackRock&#146;s overall operat-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing margin compared to the operating margin for leading investment man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement firms whose operations include advising closed-end funds, among</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other product types. The comparison indicated that operating margins for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock with respect to its registered funds are generally consistent with</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">margins earned by similarly situated publicly traded competitors. In addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion, the Boards considered, among other things, certain third party data</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">comparing BlackRock&#146;s operating margin with that of other publicly-traded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset management firms, which concluded that larger asset bases do not,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in themselves, translate to higher profit margins.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition, the Boards considered the cost of the services provided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Funds, the Feeder Funds and the Master LLC by BlackRock, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s and its affiliates&#146; profits relating to the management and dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tribution of the Funds, the Feeder Funds and the Master LLC and the other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds advised by BlackRock and its affiliates. As part of its analysis, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards reviewed BlackRock&#146;s methodology in allocating its costs to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management of the funds. The Board also considered whether BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">has the financial resources necessary to attract and retain high quality</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment management personnel to perform its obligations under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements and to continue to provide the high quality of services that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is expected by the Boards.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of DVF, FRA and BLW noted that its respective Fund paid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contractual management fees, which do not take into account any expense</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reimbursement or fee waivers, lower than or equal to the median contrac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tual management fees paid by such Fund&#146;s Peers.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Senior Floating Rate I noted that, although Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate I paid contractual management fees higher than the median of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peers, its actual total expenses were lower than or equal to the median of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its Peers.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Senior Floating Rate II noted that, although Senior Floating Rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">II paid contractual management fees higher than the median of its Peers, its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actual total expenses were within 5% of the actual total expense median.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BHL noted that BHL pays contractual management fees that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are higher than the median of its Peers and considered this higher fee in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">light of the quality of services provided by the Manager and the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">objectives and policies of BHL. The Board also noted that BHL is included</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in a Lipper Peer group where most funds commenced operations between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 and 10 years ago. There are 3 Peer funds that were offered recently and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are more appropriate funds for comparison as they contain a more appro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">priate pricing structure for bank loan products offered in the current market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">environment. These recently offered funds are similar portfolios that are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">being offered to take advantage of current market opportunities. BHL is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">competitive when compared to these 3 Peer funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">D. Economies of Scale: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members, considered the extent to which economies of scale might be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized as the assets of its respective Fund or the Master LLC increase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and whether there should be changes in the advisory fee rate or structure</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in order to enable such Fund or the Master LLC to participate in these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">economies of scale, for example through the use of breakpoints in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory fee based upon the assets of such Fund or the Master LLC, as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">applicable. The Boards considered that the funds in the BlackRock fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">complex share some common resources and, as a result, an increase in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the overall size of the complex could permit each fund to incur lower</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses than it would otherwise as a stand-alone entity. The Boards</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 83</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">also considered BlackRock&#146;s overall operations and its efforts to expand</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the scale of, and improve the quality of, its operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that most closed-end fund complexes do not have fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">level breakpoints because closed-end funds generally do not experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">substantial growth after the initial public offering and each fund is man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">aged independently consistent with its own investment objectives. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards noted that only one closed-end fund in the Fund Complex has</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoints in its fee structure. Information provided by Lipper also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">revealed that only one closed-end fund complex used a complex-level</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoint structure.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">E. Other Factors: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards also took into account other ancillary or &#147;fall-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">out&#148; benefits that BlackRock or its affiliates and significant shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may derive from their relationship with the Funds, the Feeder Funds and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Master LLC, both tangible and intangible, such as BlackRock&#146;s ability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to leverage its investment professionals who manage other portfolios, an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase in BlackRock&#146;s profile in the investment advisory community, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the engagement of BlackRock&#146;s affiliates and significant shareholders as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">service providers to the Funds, the Feeder Funds and the Master LLC,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including for administrative, and in the case of the Feeder Funds transfer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agency, and distribution services. The Boards also noted that BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may use third-party research obtained by soft dollars generated by certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mutual fund transactions to assist itself in managing all or a number of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its other client accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with their consideration of the Agreements, the Boards also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">received information regarding BlackRock&#146;s brokerage and soft dollar prac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tices. The Boards received reports from BlackRock, which included informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion on brokerage commissions and trade execution practices throughout</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the year.</FONT></P>
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<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Conclusion</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board Members, unanimously</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approved the continuation of the Advisory Agreement between its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Fund or the Master LLC and the Manager for a one-year term ending</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">June 30, 2010 and, as applicable, the Sub-Advisory Agreement between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such Fund or the Master LLC, the Manager and Sub-Advisor for a one-year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">term ending June 30, 2010. Based upon its evaluation of all these factors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in their totality, each Board, including its Independent Board Members,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">was satisfied that the terms of the Agreements were fair and reasonable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and in the best interest of its respective Fund or the Master LLC and its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders. The Board of Directors of each Feeder Fund, including the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members, also considered the continuation of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements with respect to the Master LLC and found the Agreements to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be satisfactory. In arriving at a decision to approve the Agreements, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board did not identify any single factor or group of factors as all-important</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or controlling, but considered all factors together, and different Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members may have attributed different weights to the various factors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">considered. The Independent Board Members were also assisted by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advice of independent legal counsel in making this determination. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contractual fee arrangements for each Fund or the Master LLC reflects</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the results of several years of review by such Fund&#146;s and the Master LLC&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Members and predecessor Board Members, as applicable, and dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cussions between such Board Members (and predecessor Board Members)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock. Certain aspects of the arrangements may be the subject</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of more attention in some years than in others, and the Board Members&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">conclusions may be based in part on their consideration of these arrange-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments in prior years.</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">84 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plan</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">How the Plan Works </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; The Funds offer a Dividend Reinvestment Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(the &#147;Plan&#148;) under which income and capital gains dividends paid by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Fund are automatically reinvested in additional Common Shares of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund. The Plan is administered on behalf of the shareholders by BNY</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mellon Shareowner Services for Senior Floating Rate and Senior Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate II and Computershare Trust Company, N.A. for BHL, DVF, FRA and BLW</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(individually, the &#147;Plan Agent&#148; or together, the &#147;Plan Agents&#148;). Under the Plan,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">whenever a Fund declares a dividend, participants in the Plan will receive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the equivalent in Common Shares of the Fund. The Plan Agents will acquire</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the shares for the participant&#146;s account either (i) through receipt of addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional unissued but authorized shares of the Funds (&#147;newly issued shares&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or (ii) by purchase of outstanding Common Shares on the open market on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the New York Stock Exchange, as applicable, or elsewhere. If, on the divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dend payment date, the Fund&#146;s net asset value per share is equal to or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than the market price per share plus estimated brokerage commis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sions (a condition often referred to as a &#147;market premium&#148;), the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agents will invest the dividend amount in newly issued shares. If the Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net asset value per share is greater than the market price per share (a con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dition often referred to as a &#147;market discount&#148;), the Plan Agents will invest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dividend amount by purchasing on the open market additional shares.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If the Plan Agents are unable to invest the full dividend amount in open</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market purchases, or if the market discount shifts to a market premium</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">during the purchase period, the Plan Agents will invest any uninvested por-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion in newly issued shares. The shares acquired are credited to each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholder&#146;s account. The amount credited is determined by dividing the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dollar amount of the dividend by either (i) when the shares are newly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued, the net asset value per share on the date the shares are issued or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(ii) when shares are purchased in the open market, the average purchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price per share.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Participation in the Plan </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; Participation in the Plan is automatic, that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is, a shareholder is automatically enrolled in the Plan when he or she pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chases shares of Common Shares of the Funds unless the shareholder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specifically elects not to participate in the Plan. Shareholders who elect not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to participate will receive all dividend distributions in cash. Shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">who do not wish to participate in the Plan must advise their Plan Agent in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">writing (at the address set forth below) that they elect not to participate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the Plan. Participation in the Plan is completely voluntary and may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be terminated or resumed at any time without penalty by writing to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Benefits of the Plan </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; The Plan provides an easy, convenient way for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders to make additional, regular investments in the Funds.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan promotes a long-term strategy of investing at a lower cost. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares acquired pursuant to the Plan receive voting rights. In addition, if</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market price plus commissions of a Fund&#146;s shares is above the net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset value, participants in the Plan will receive shares of the Funds for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than they could otherwise purchase them and with a cash value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater than the value of any cash distribution they would have received.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">However, there may not be enough shares available in the market to make</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions in shares at prices below the net asset value. Also, since the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds do not redeem shares, the price on resale may be more or less than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the net asset value.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Plan Fees </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; There are no enrollment fees or brokerage fees for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participating in the Plan. The Plan Agents&#146; service fees for handling the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reinvestment of distributions are paid for by the Funds. However, broker-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">age commissions may be incurred when the Funds purchase shares on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the open market and shareholders will pay a pro rata share of any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such commissions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Tax Implications </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; The automatic reinvestment of dividends and distribu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions will not relieve participants of any federal, state or local income tax</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that may be payable (or required to be withheld) on such dividends.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Therefore, income and capital gains may still be realized even though</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders do not receive cash. If, when the Funds&#146; shares are trading at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a market premium, the Funds issue shares pursuant to the Plan that have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a greater fair market value than the amount of cash reinvested, it is possi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ble that all or a portion of the discount from the market value (which may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not exceed 5% of the fair market value of the Funds&#146; shares) could be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">viewed as a taxable distribution. If the discount is viewed as a taxable dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tribution, it is also possible that the taxable character of this discount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">would be allocable to all the shareholders, including shareholders who do</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not participate in the Plan. Thus, shareholders who do not participate in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan might be required to report as ordinary income a portion of their dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tributions equal to their allocable share of the discount.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Contact Information </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; All correspondence concerning the Plan, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any questions about the Plan, should be directed to the Plan Agent at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the following addresses: Shareholders of Senior Floating Rate and Senior</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate II should contact BNY Mellon Shareowner Services, P.O. Box</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385035, Pittsburgh, PA 15252-8035 Telephone: (866) 216-0242 and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders of BHL, DVF, FRA and BLW should contact Computershare Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company, N.A., P.O. Box 43078, Providence, RI 02940-3078 Telephone:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(800) 699-1BFM or overnight correspondence should be directed to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent at 250 Royall Street, Canton, MA 02021.</FONT></P>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors</FONT>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds/</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master LLC</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Director</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Aircraft Finance Trust since 1999; Director, The Guardian</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICS consisting of</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Arch Chemical</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Board</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Insurance Company of America since 1998; Trustee, Educational</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(chemical and allied</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Director</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Testing Service from 1997 to 2009 and Chairman from 2005 to 2009</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">products)</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1946</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Advisor, The Fremont Group since 2008 and Director thereof</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1996; Adjunct Lecturer, Harvard University since 2007; President</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Chief Executive Officer of The Conference Board, Inc. (global</FONT></TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">business research organization) from 1995 to 2007.</FONT>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice Chair of</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Partner of Robards &amp; Company, LLC (financial advisory firm) since</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AtriCure, Inc.</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Board,</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1987; Co-founder and Director of the Cooke Center for Learning and</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(medical devices);</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chair of</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Development, (a not-for-profit organization) since 1987; Director of</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Care Investment</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1950</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enable Medical Corp. from 1996 to 2005.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust, Inc. (health</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">care real estate</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Director</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment trust)</FONT>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman and Chief Executive Officer, Arch Street Management, LLC</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Beckwith Family Foundation) and various Beckwith property companies</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 2005; Chairman of the Board of Directors, University of Pittsburgh</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Medical Center since 2002; Board of Directors, Shady Side Hospital</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foundation since 1977; Board of Directors, Beckwith Institute for</FONT></TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Innovation In Patient Care since 1991; Member, Advisory Council on</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biology and Medicine, Brown University since 2002; Trustee, Claude</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Worthington Benedum Foundation (charitable foundation) since 1989;</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board of Trustees, Chatham University since 1981; Board of Trustees,</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Pittsburgh since 2002; Emeritus Trustee, Shady Side</FONT></TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Academy since 1977; Chairman and Manager, Penn West Industrial</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trucks LLC (sales, rental and servicing of material handling equipment)</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from 2005 to 2007; Chairman, President and Chief Executive Officer,</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beckwith Machinery Company (sales, rental and servicing of construction</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and equipment) from 1985 to 2005; Member of the Board of Directors,</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Retail Properties (REIT) from 2006 to 2007.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Investor since 1988.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1937</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Editor of The Journal of Portfolio Management since 2006;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professor in the Practice of Finance and Becton Fellow, Yale University,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School of Management, since 2006; Adjunct Professor of Finance</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1948</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Becton Fellow, Yale University from 1994 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President of Economics Studies, Inc. (private economic consulting</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The McClatchy</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">firm) since 1987; Chair, Board of Trustees, McLean Hospital from</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2000 to 2008 and Trustee Emeritus thereof since 2008; Member of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(publishing)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1941</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Board of Partners Community Healthcare, Inc. since 2005;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of the Corporation of Partners HealthCare since 1995;</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Museum of Fine Arts, Boston since 1992; Member of the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Visiting Committee to the Harvard University Art Museum since 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Financial Officer of JP Morgan &amp; Co., Inc. from 1990 to 1995.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1939</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Ursinus College since 2000; Director, Troemner LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Kelso</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(scientific equipment)since 2000.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Corp.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1942</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">86</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=14%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=39%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=14%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds/</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master LLC</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Director</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1
</FONT></SUP></B><B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dean, Columbia Business School since 2004; Columbia faculty</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ADP (data and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">member since 1988; Co-Director, Columbia Business School&#146;s</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information services),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Entrepreneurship Program from 1997 to 2004; Visiting Professor,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">KKR Financial</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1958</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John F. Kennedy School of Government at Harvard University and the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (finance),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harvard Business School since 1985 and at the University of Chicago</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Life</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1994; Chairman, U.S. Council of Economic Advisers under the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insurance Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President of the United States from 2001 to 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(insurance)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">George Fisher Baker Jr. Professor of Business Administration, Harvard</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Business School; Deputy Dean for Academic Affairs, since 2006; Unit</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Head, Finance, Harvard Business School, from 2005 to 2006; Senior</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1951</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Associate Dean and Chairman of the MBA Program of Harvard Business</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School, from 1999 to 2005; Member of the faculty of Harvard Business</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School since 1981; Independent Consultant since 1978.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors serve until their resignation, removal or death, or until December 31 of the
year in which they turn 72.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Date shown is the earliest date a person has served as a director for the Funds and
Master LLC covered by this annual report. Following the combination</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Merrill Lynch Investment Managers, L.P. (&#147;MLIM&#148;) and BlackRock, Inc. (&#147;BlackRock&#148;) in September 2006, the various legacy MLIM and legacy
BlackRock</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the
Funds&#146;/</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master LLC&#146;s board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows:
G.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173 RICs</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Research &amp; Management Company from 2000 to 2005; Chairman of the Board</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consisting of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SSR Realty from 2000 to 2004.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173 RICs</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consisting of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from 1998 to 2007; President of BlackRock Funds and BlackRock Bond</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1947</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds in the BlackRock fund complex from 1989 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Davis is an &#147;interested person,&#148; as defined in the Investment Company Act
of 1940, of the Funds/Master LLC based on his position with BlackRock,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc. and its affiliates. Mr. Gabbay is an &#147;interested person&#148; of the Funds/Master LLC based on his former positions with BlackRock, Inc. and its
affiliates</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as his ownership of BlackRock, Inc. and PNC Securities. Directors serve until their resignation, removal or death, or until December 31 of the
year</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which they turn 72.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">87</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds/</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Master LLC</FONT></B>&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Time Served Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds/Master LLC Officers</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Anne F. Ackerley</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Chief</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Operating Officer of BlackRock&#146;s Account Management Group (AMG) since 2009; Chief Operating Officer of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Executive</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s U.S. Retail Group from 2006 to 2009; Head of BlackRock&#146;s Mutual Fund Group from 2000 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1962</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brendan Kyne</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock&#146;s U.S. Retail</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Associate of BlackRock, Inc. from 2002 to 2004.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1977</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Neal J. Andrews</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1966</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jay M. Fife</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Treasurer</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Managers, L.P. (&#147;MLIM&#148;) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MLIM Fund Services Group from 2001 to 2006.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1970</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brian P. Kindelan</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Compliance</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1959</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Howard B. Surloff</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Secretary</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Goldman Sachs Asset Management, L.P. from 1993 to 2006.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1965</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers of the Funds/Master LLC serve at the pleasure of the Board of
Directors.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Advisor</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Custodians</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transfer Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Legal Counsel</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Registered Public</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Skadden, Arps, Slate,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Computershare Trust Company, N.A.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Firm</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Meagher &amp; Flom </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston, MA 02101</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Providence, RI 02940</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sub-Advisor</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Bank of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PNC Global Investment</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Address of the Funds</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management, Inc</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Mellon</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Servicing (U.S.) Inc.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Bellevue Parkway</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10286</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For BHL, DVF, FRA, and BLW.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Senior Floating Rate and Senior Floating Rate II.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Funds and Master LLC retired. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds&#146; and Master LLC&#146;s Board of Directors wish Mr. Burke well in his retirement.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Funds and Master LLC, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brendan Kyne became Vice President of the Funds and Master LLC.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">88 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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	<TD align=left style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Proxy Results</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009, to elect director nominees of each Fund:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Directors as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,155,029</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">373,970</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,156,729</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,270</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,156,729</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,645,169</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,452</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,648,802</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,819</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,632,612</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">177,009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,143,906</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385,093</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,155,129</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">373,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,214,394</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">314,605</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,621,624</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">187,997</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,662,972</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">146,649</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,627,697</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">181,924</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,144,616</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384,383</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,157,685</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">371,314</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,153,500</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,499</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,647,862</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,759</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,632,690</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">176,931</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,643,243</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166,378</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,132,619</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">396,380</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,144,844</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384,155</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,215,478</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313,521</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,658,263</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151,358</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,647,982</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,639</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,620,093</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189,528</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Class II Directors/Trustees as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,275,596</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">252,027</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,275,596</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">252,027</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,174,587</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">353,036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,281,241</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">701,401</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,281,241</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">701,401</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,257,346</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">725,296</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B></TD>
</TR>
<TR>
	<TD colspan=7><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,262,061</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265,562</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,228,618</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">754,024</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Certification</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds are listed for trading on the New York Stock Exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;NYSE&#148;) and have filed with the NYSE their annual chief executive officer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certification regarding compliance with the NYSE&#146;s listing standards. The</FONT></P>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds filed with the SEC the certification of its chief executive officer and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chief financial officer required by section 302 of the Sarbanes-Oxley Act.</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend Policy</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund&#146;s dividend policy is to distribute all or a portion of its net invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment income to its shareholders on a monthly basis. In order to provide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders with a more stable level of dividend distributions, the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may at times pay out less than the entire amount of net investment income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned in any particular month and may at times in any particular month</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pay out such accumulated but undistributed income in addition to net</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment income earned in that month. As a result, the dividends paid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the Funds for any particular month may be more or less than the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of net investment income earned by the Funds during such month.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds&#146; current accumulated but undistributed net investment income,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if any, is disclosed in the Statements of Assets and Liabilities, which com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prises part of the financial information included in this report.</FONT></P>
<P align="center">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 89</FONT></P>

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



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<A name="page_92"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">General Information</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds do not make available copies of their Statements of Additional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information because the Funds&#146; shares are not continuously offered, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">means that the Statement of Additional Information of each Fund has not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been updated after completion of the respective Fund&#146;s offerings and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information contained in each Fund&#146;s Statement of Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may have become outdated.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the period, there were no material changes in the Funds&#146; investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">objectives or policies or to the Funds&#146; charters or by-laws that were not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approved by their shareholders or in the principal risk factors associated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with investment in the Funds. Changes regarding the persons who are pri-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">marily responsible for the day-to-day management for the Funds&#146; portfolios</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are noted in the boxed text below.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quarterly performance, semi-annual and annual reports and other informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion regarding the Funds may be found on BlackRock&#146;s website, which can</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be accessed at http://www.blackrock.com. This reference to BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website is intended to allow investors public access to information regard-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the Funds and does not, and is not intended to, incorporate BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website into this report.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Electronic Delivery</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Electronic copies of most financial reports are available on the Funds&#146; web-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sites or shareholders can sign up for e-mail notifications of quarterly state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, annual and semi-annual reports by enrolling in the Funds&#146; electronic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delivery program.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Shareholders Who Hold Accounts with Investment Advisors, Banks</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">or Brokerages:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Please contact your financial advisor to enroll. Please note that not all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisors, banks or brokerages may offer this service.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Householding</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds will mail only one copy of shareholder documents, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">annual and semi-annual reports and proxy statements, to shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with multiple accounts at the same address. This practice is commonly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">called &#147;householding&#148; and it is intended to reduce expenses and eliminate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">duplicate mailings of shareholder documents. Mailings of your shareholder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">documents may be householded indefinitely unless you instruct us other-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wise. If you do not want the mailing of these documents to be combined</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with those for other members of your household, please contact the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at (800) 441-7762.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Quarterly Schedule of Investments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund files its complete schedule of portfolio holdings with the SEC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the first and third quarters of each fiscal year on Form N-Q. The Funds&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forms N-Q are available on the SEC&#146;s website at http://www.sec.gov and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may also be reviewed and copied at the SEC&#146;s Public Reference Room</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in Washington, DC. Information on the operation of the Public Reference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Room may be obtained by calling (202) 551-8090. Each Fund&#146;s Forms</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">N-Q may also be obtained upon request and without charge by calling</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(800) 441-7762</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Policies and Procedures</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A description of the policies and procedures that the Funds use to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determine how to vote proxies relating to portfolio securities is available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1) without charge, upon request, by calling toll-free (800) 441-7762;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2) at www.blackrock.com; and (3) on the Securities and Exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commission&#146;s website at http://www.sec.gov.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Record</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information about how the Funds voted proxies relating to securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">held in the Funds&#146; portfolios during the most recent 12-month period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended June 30 is available upon request and without charge (1) at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">www.blackrock.com or by calling (800) 441-7762 and (2) on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Securities and Exchange Commission&#146;s website at http://www.sec.gov.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL, DVF, FRA, BLW, Senior Floating Rate and Senior Floating Rate II are managed by a team of financial professionals.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The portfolio managers are primarily responsible for the day-to-day management of the Funds&#146; portfolios. Effective May 8,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, Leland T. Hart, James E. Keenan and C. Adrian Marshall are the portfolio managers for BHL, BLW and DVF. Leland T.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hart and C. Adrian Marshall are the portfolio managers for FRA, Senior Floating Rate and Senior Floating Rate II.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Hart is Managing Director of BlackRock, Inc. since 2009; Partner of R3 Capital Partners in 2009 and Managing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director thereof from 2008 to 2009; Managing Director of Lehman Brothers from 2006 to 2008 and Executive Director</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">thereof from 2003 to 2006.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Keenan is Managing Director of BlackRock, Inc. since 2008 and Director thereof from 2004 to 2008; Head of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leveraged Finance Portfolio team; and senior high yield trader at Columbia Management Group from 2003 to 2004.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Marshall is Director of BlackRock, Inc. since 2007 and Vice President thereof from 2004 to 2007.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">90 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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



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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (concluded)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Section 19 Notices</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The amounts and sources of distributions reported are only estimates and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are not being provided for tax reporting purposes. The actual amounts and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sources for tax reporting purposes will depend upon each Fund&#146;s invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment experience during the year and may be subject to changes based on</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the tax regulations. Each Fund will send you a Form 1099-DIV each calen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dar year that will tell you how to report these distributions for federal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax purposes.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=23%></TD>
     <TD width=18%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=6%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Cumulative Distributions</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">% Breakdown of the Total Cumulative</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">for the Fiscal Year-to-Date</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributions for the Fiscal Year-to-Date</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHL</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.795949</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.306551</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.102500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DVF</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.080595</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.296905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.377500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FRA</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.209873</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.091341</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.301214</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLW</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.958695</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.201334</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.160029</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.376591</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.007176</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.383768</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Floating Rate II.</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.399235</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.006780</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.406016</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Privacy Principles</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock is committed to maintaining the privacy of its current and for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mer fund investors and individual clients (collectively, &#147;Clients&#148;) and to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">safeguarding their non-public personal information. The following informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion is provided to help you understand what personal information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock collects, how we protect that information and why in certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cases we share such information with select parties.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If you are located in a jurisdiction where specific laws, rules or regulations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require BlackRock to provide you with additional or different privacy-related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rights beyond what is set forth below, then BlackRock will comply with those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific laws, rules or regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock obtains or verifies personal non-public information from and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about you from different sources, including the following: (i) information we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receive from you or, if applicable, your financial intermediary, on applica-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions, forms or other documents; (ii) information about your transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with us, our affiliates, or others; (iii) information we receive from a consumer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting agency; and (iv) from visits to our websites.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock does not sell or disclose to non-affiliated third parties any non-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">public personal information about its Clients, except as permitted by law</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or as is necessary to respond to regulatory requests or to service Client</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounts. These non-affiliated third parties are required to protect the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">confidentiality and security of this information and to use it only for its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">intended purpose.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We may share information with our affiliates to service your account or to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide you with information about other BlackRock products or services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that may be of interest to you. In addition, BlackRock restricts access</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to non-public personal information about its Clients to those BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">employees with a legitimate business need for the information. BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">maintains physical, electronic and procedural safeguards that are designed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to protect the non-public personal information of its Clients, including pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cedures relating to the proper storage and disposal of such information.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT AUGUST 31, 2009 91</FONT></P>

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

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<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 4 &#150; Principal Accountant Fees and Services</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(a) Audit Fees</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(b) Audit-Related Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(c) Tax Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(d) All Other Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">3</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Duration Income</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;52,300</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;49,300</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,028</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Trust</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1 The nature of the services include assurance and related services reasonably related to the performance of the audit of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements not included in Audit Fees.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 The nature of the services include tax compliance, tax advice and tax planning.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3 The nature of the services include a review of compliance procedures and attestation thereto.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(1) Audit Committee Pre-Approval Policies and Procedures:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The registrant&#146;s audit committee (the &#147;Committee&#148;) has adopted policies and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures with regard to the pre-approval of services. Audit, audit-related and tax</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compliance services provided to the registrant on an annual basis require specific pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval by the Committee. The Committee also must approve other non-audit services</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">provided to the registrant and those non-audit services provided to the registrant&#146;s affiliated</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service providers that relate directly to the operations and the financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant. Certain of these non-audit services that the Committee believes are a) consistent</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">with the SEC&#146;s auditor independence rules and b) routine and recurring services that will</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not impair the independence of the independent accountants may be approved by the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee without consideration on a specific case-by-case basis (&#147;general pre-approval&#148;).</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term of any general pre-approval is 12 months from the date of the pre-approval, unless</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Committee provides for a different period. Tax or other non-audit services provided to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the registrant which have a direct impact on the operation or financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant will only be deemed pre-approved provided that any individual project does not</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">exceed &#36;10,000 attributable to the registrant or &#36;50,000 for all of the registrants the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee oversees. For this purpose, multiple projects will be aggregated to determine if</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">they exceed the previously mentioned cost levels.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any proposed services exceeding the pre-approved cost levels will require specific</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">pre-approval by the Committee, as will any other services not subject to general pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval (e.g., unanticipated but permissible services). The Committee is informed of each</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service approved subject to general pre-approval at the next regularly scheduled in-person</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">board meeting. At this meeting, an analysis of such services is presented to the Committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">for ratification. The Committee may delegate to one or more of its members the authority to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approve the provision of and fees for any specific engagement of permitted non-audit</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">services, including services exceeding pre-approved cost levels.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(2) None of the services described in each of Items 4(b) through (d) were approved by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(f) Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(g) </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliates&#146; Aggregate Non-Audit Fees:</FONT></U></P>
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     <TD width=38%></TD>
     <TD width=32%></TD>
     <TD width=28%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;414,628</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;412,149</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Income Trust</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>

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

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">without charge, (i) at www.blackrock.com and (ii) on the SEC&#146;s website at</FONT><BR>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.sec.gov</FONT></U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 8 &#150; Portfolio Managers of Closed-End Management Investment Companies &#150; as of August 31,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2009.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(1) The registrant (or &#147;Fund&#148;) is managed by a team of investment professionals</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comprised of Leland Hart, Managing Director at BlackRock, James E. Keenan, Managing</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director at BlackRock and C. Adrian Marshall, Director at BlackRock. Messrs. Hart,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Keenan and Marshall are the Fund&#146;s co-portfolio managers and are responsible for the day-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">to-day management of the Fund&#146;s portfolio and the selection of its investments. Mr. Keenan</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">has been a member of the Fund&#146;s management team since 2007. Messrs. Hart and Marshall</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">have been members of the Fund&#146;s management team since 2009.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=25%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=13%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=15%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Biography</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Leland Hart</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock, Inc. since 2009; Partner of R3 Capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Partners ("R3") in 2009; Managing Director of R3 in 2008 - 2009; Managing</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director of Lehman Brothers from 2006 - 2008; Executive Director of Lehman</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Brothers from 2003 - 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James E. Keenan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock, Inc. since 2008; Director of BlackRock, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from 2004 - 2008; Head of the Leveraged Finance Portfolio team; senior high</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">yield trader at Columbia Management from 2003 to 2004.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">C. Adrian Marshall</FONT>&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director of BlackRock, Inc. since 2007; Vice President of BlackRock, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from 2004 - 2007.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(2) As of August 31, 2009:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(ii) Number of Other Accounts Managed</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(iii) Number of Other Accounts and</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">and Assets by Account Type</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Assets for Which Advisory Fee is</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Performance-Based</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(i) Name of</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Leland Hart</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">8</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.9 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;36.6 Million</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James E. Keenan</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">22</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">19</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">47</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">9</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;2.36 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;5.92 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;4.8 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;3.6 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;593.2 Million</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">C. Adrian Marshall</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">8</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">15</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">6</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">10</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.9 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;4.23 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.06 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;3.48 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv) Potential Material Conflicts of Interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock and its affiliates (collectively, herein &#147;BlackRock&#148;) has built a professional</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">working environment, firm-wide compliance culture and compliance procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">systems designed to protect against potential incentives that may favor one account over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">another. BlackRock has adopted policies and procedures that address the allocation of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment opportunities, execution of portfolio transactions, personal trading by employees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and other potential conflicts of interest that are designed to ensure that all client accounts are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">treated equitably over time. Nevertheless, BlackRock furnishes investment management and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">advisory services to numerous clients in addition to the Fund, and BlackRock may,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consistent with applicable law, make investment recommendations to other clients or</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts (including accounts which are hedge funds or have performance or higher fees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">such fees), which may be the same as or different from those made to the Fund. In addition,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, its affiliates and significant shareholders and any officer, director, stockholder</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or employee may or may not have an interest in the securities whose purchase and sale</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders, or any officer, director, stockholder, employee or any member of their</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">families may take different actions than those recommended to the Fund by BlackRock with</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respect to the same securities. Moreover, BlackRock may refrain from rendering any advice</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or services concerning securities of companies of which any of BlackRock&#146;s (or its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">affiliates&#146; or significant shareholders&#146;) officers, directors or employees are directors or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">officers, or companies as to which BlackRock or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders or the officers, directors and employees of any of them has any substantial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">economic interest or possesses material non-public information. Each portfolio manager</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">also may manage accounts whose investment strategies may at times be opposed to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">strategy utilized for a fund. In this connection, it should be noted that Messrs. Keenan and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Marshall currently manage certain accounts that are subject to performance fees. In</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">addition, Mr. Keenan assists in managing certain hedge funds and may be entitled to receive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a portion of any incentive fees earned on such funds and a portion of such incentive fees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">may be voluntarily or involuntarily deferred. Additional portfolio managers may in the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">future manage other such accounts or funds and may be entitled to receive incentive fees.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fairly. When BlackRock purchases or sells securities for more than one account, the trades</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">allocate investments in a fair and equitable manner among client accounts, with no account</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">receiving preferential treatment. To this end, BlackRock has adopted a policy that is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">intended to ensure that investment opportunities are allocated fairly and equitably among</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">client accounts over time. This policy also seeks to achieve reasonable efficiency in client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">transactions and provide BlackRock with sufficient flexibility to allocate investments in a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">manner that is consistent with the particular investment discipline and client base.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(3) As of August 31, 2009:</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager Compensation Overview</FONT></B><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s financial arrangements with its portfolio managers, its competitive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation and its career path emphasis at all levels reflect the value senior management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">places on key resources. Compensation may include a variety of components and may vary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from year to year based on a number of factors. The principal components of compensation</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">include a base salary, a performance-based discretionary bonus, participation in various</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benefits programs and one or more of the incentive compensation programs established by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Program.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Base compensation. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Generally, portfolio managers receive base compensation based on</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">their seniority and/or their position with the firm. Senior portfolio managers who perform</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">additional management functions within the portfolio management group or within</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock may receive additional compensation for serving in these other capacities.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Discretionary Incentive Compensation</FONT></B></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is a function of several components: the performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of BlackRock, Inc., the performance of the portfolio manager&#146;s group within BlackRock,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the investment performance, including risk-adjusted returns, of the firm&#146;s assets under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">management or supervision by that portfolio manager relative to predetermined</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benchmarks, and the individual&#146;s seniority, role within the portfolio management team,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">teamwork and contribution to the overall performance of these portfolios and BlackRock.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In most cases, including for the portfolio managers of the Fund, these benchmarks are the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">same as the benchmark or benchmarks against which the performance of the Fund or other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by the portfolio managers are measured. BlackRock&#146;s Chief Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officers determine the benchmarks against which the performance of funds and other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by each portfolio manager is compared and the period of time over which</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance is evaluated. With respect to the portfolio managers, such benchmarks for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund include a combination of market-based indices (e.g., Barclays Capital High Yield</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Index, Barclays Capital Intermediate Government/Credit Index, CSFB Leveraged Loan</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Index), certain customized indices and certain fund industry peer groups.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s Chief Investment Officers make a subjective determination with respect to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio managers&#146; compensation based on the performance of the funds and other accounts</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">managed by each portfolio manager relative to the various benchmarks noted above.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Performance is measured on both a pre-tax and after-tax basis over various time periods</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">including 1, 3, 5 and 10-year periods, as applicable.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Distribution of Discretionary Incentive Compensation</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is distributed to portfolio managers in a combination</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">salary, represents more than 60% of total compensation for the portfolio managers. Paying</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">given year &#147;at risk&#148; based on BlackRock&#146;s ability to sustain and improve its performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over future periods.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Long-Term Retention and Incentive Plan (&#147;LTIP&#148;) &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The LTIP is a
long-term</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive plan that seeks to reward certain key employees. Prior to 2006, the plan provided</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">for the grant of awards that were expressed as an amount of cash that, if properly vested and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">subject to the attainment of certain performance goals, will be settled in cash and/or in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Beginning in 2006, awards are granted under the LTIP in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">attainment of certain performance goals, will be settled in BlackRock, Inc. common stock.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Messrs. Keenan and Marshall have each received awards under the LTIP.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Deferred Compensation Program &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A portion of the compensation paid to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">eligible BlackRock employees may be voluntarily deferred into an account that tracks the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance of certain of the firm&#146;s investment products. Each participant in the deferred</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation program is permitted to allocate his deferred amounts among the various</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment options. Messrs. Keenan and Marshall have each participated in the deferred</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation program.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other compensation benefits. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In addition to base compensation and discretionary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive compensation, portfolio managers may be eligible to receive or participate in one</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or more of the following:</FONT></P>

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<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Incentive Savings Plans &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. has created a variety of incentive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">savings plans in which BlackRock employees are eligible to participate, including a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">company match equal to 50% of the first 6% of eligible pay contributed to the plan capped</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">at &#36;4,000 per year, and a company retirement contribution equal to 3-5% of eligible</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation. The RSP offers a range of investment options, including registered</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment companies managed by the firm. BlackRock contributions follow the investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">direction set by participants for their own contributions or, absent employee investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">direction, are invested into a balanced portfolio. The ESPP allows for investment in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock common stock at a 5% discount on the fair market value of the stock on the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or a dollar value of &#36;25,000. Each portfolio manager is eligible to participate in these plans.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=8%></TD>
     <TD width=46%></TD>
     <TD width=45%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(4)</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Beneficial Ownership of Securities.</FONT></I>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Dollar Range of Equity Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Beneficially Owned</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Leland Hart</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James E. Keenan</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">C. Adrian Marshall</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 9 &#150; Purchases of Equity Securities by Closed-End Management Investment Company and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliated Purchasers &#150; Not Applicable due to no such purchases during the period covered</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">by this report.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 10 &#150; Submission of Matters to a Vote of Security Holders &#150; The registrant&#146;s Nominating and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Governance Committee will consider nominees to the board of directors recommended by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders when a vacancy becomes available. Shareholders who wish to recommend a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nominee should send nominations that include biographical information and set forth the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualifications of the proposed nominee to the registrant&#146;s Secretary. There have been no</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material changes to these procedures.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 11 &#150; Controls and Procedures</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(a) &#150; The registrant&#146;s principal executive and principal financial officers or persons performing</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">similar functions have concluded that the registrant&#146;s disclosure controls and procedures (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;1940 Act&#148;)) are effective as of a date within 90 days of the filing of this report based on the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(b) &#150; There were no changes in the registrant&#146;s internal control over financial reporting (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the period covered by this report that have materially affected, or are reasonably likely to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">materially affect, the registrant&#146;s internal control over financial reporting.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 12 &#150; Exhibits attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(1) &#150; Code of Ethics &#150; See Item 2</FONT></P>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(2) &#150; Certifications &#150; Attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(3) &#150; Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(b) &#150; Certifications &#150; Attached hereto</FONT></P>

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<A name="page_103"></A>

<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the undersigned, thereunto duly authorized.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, this report has been signed below by the following persons on behalf</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant and in the capacities and on the dates indicated.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>

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   <TITLE>blwex99cert.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Anne F. Ackerley, Chief Executive Officer (principal executive officer) of BlackRock Limited Duration Income Trust,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">certify that:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Limited Duration Income Trust;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material fact necessary to make the statements made, in light of the circumstances under which such statements were made,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this report fairly</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">designed under our supervision, to ensure that material information relating to the registrant, including its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting and the preparation of financial statements for external purposes in accordance with generally</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">days prior to the filing date of this report, based on such evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial reporting that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal control over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">summarize, and report financial information; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who have a significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">role in the registrant's internal control over financial reporting.</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Limited Duration</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Income Trust, certify that:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Limited Duration Income Trust;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">omit to state a material fact necessary to make the statements made, in light of the circumstances under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which such statements were made, not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report fairly present in all material respects the financial condition, results of operations, changes in net</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant as of, and for, the periods presented in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures to be designed under our supervision, to ensure that material information relating to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant, including its consolidated subsidiaries, is made known to us by others within those</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">entities, particularly during the period in which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting to be designed under our supervision, to provide reasonable assurance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">regarding the reliability of financial reporting and the preparation of financial statements for</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">external purposes in accordance with generally accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">presented in this report our conclusions about the effectiveness of the disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures, as of a date within 90 days prior to the filing date of this report, based on such</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting that occurred during the second fiscal quarter of the period covered by this report that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">has materially affected, or is reasonably likely to materially affect, the registrant's internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">control over financial reporting which are reasonably likely to adversely affect the registrant's</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">ability to record, process, summarize, and report financial information; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">have a significant role in the registrant's internal control over financial reporting.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>
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<P align="left"> <U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
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<TYPE>EX-99.906 CERT
<SEQUENCE>9
<FILENAME>blwsec906.htm
<DESCRIPTION>CERT
<TEXT>

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   <TITLE>blwsec906.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 99.1350CERT</FONT></P>
<P align="center"> <B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Certification Pursuant to Rule 30a-2(b) under the 1940 Act and</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Section 906 of the Sarbanes Oxley Act</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Limited Duration Income Trust (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of her knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended August 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the Securities</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Limited Duration Income Trust (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of his knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended August 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the Securities</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Limited Duration Income Trust</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Commission</FONT><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">.</FONT></B></P>
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<DOCUMENT>
<TYPE>EX-99.PROXYPOL
<SEQUENCE>10
<FILENAME>blackrockproxyvotingpolicies.htm
<DESCRIPTION>PROXY POLICY
<TEXT>

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   <TITLE>blackrockproxyvotingpolicies.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT></U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif"> </FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">For The BlackRock-Advised Funds</FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">May 30, 2008</FONT></TD></TR></TABLE>
</P>

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