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<SEC-DOCUMENT>0000930413-05-006730.txt : 20050923
<SEC-HEADER>0000930413-05-006730.hdr.sgml : 20050923
<ACCEPTANCE-DATETIME>20050923100829
ACCESSION NUMBER:		0000930413-05-006730
CONFORMED SUBMISSION TYPE:	N-CSR/A
PUBLIC DOCUMENT COUNT:		11
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050923
DATE AS OF CHANGE:		20050923
EFFECTIVENESS DATE:		20050923

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK GLOBAL FLOATING RATE INCOME TRUST
		CENTRAL INDEX KEY:			0001287480
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		N-CSR/A
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21566
		FILM NUMBER:		051099257

	BUSINESS ADDRESS:	
		STREET 1:		40 EAST 52ND STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-754-5336

	MAIL ADDRESS:	
		STREET 1:		40 EAST 52ND STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK VARIABLE RATE & INFLATION PROTECTED SECURITIES
		DATE OF NAME CHANGE:	20040416
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR/A
<SEQUENCE>1
<FILENAME>c38906_ncsr-a.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center"><FONT size=2 face="serif">UNITED STATES <br>
  </FONT><FONT size=2 face="serif">SECURITIES AND EXCHANGE COMMISSION<br>
  Washington, D.C. 20549 </FONT></P>
<P align="center">
<B><FONT size=4 face="serif">FORM N-CSR</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED <br>
MANAGEMENT INVESTMENT COMPANIES </FONT></B></P>
<P align="center">
<FONT size=2 face="serif">Investment Company Act file number:&nbsp;&nbsp;&nbsp; 811-21566</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" align="center"><font size=2 face="serif">BlackRock Global Floating Rate Income Trust</font></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><HR noshade  width="70%" size=1></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><font size=2 face="serif">(Exact name of registrant as specified in charter)</font></td>
  </tr>
  <tr>
    <td colspan="2" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font size=2 face="serif">100 Bellevue Parkway, Wilmington, DE</font></td>
    <td align="center"><font size=2 face="serif"> 19809 </font></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><HR noshade  width="100%" size=1></td>
  </tr>
  <tr>
    <td width="50%" align="center"><font size=2 face="serif">(Address of principal executive offices)</font></td>
    <td width="50%" align="center"><font size=2 face="serif"> (Zip code)</font></td>
  </tr>
  <tr>
    <td colspan="2" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="center"><font size=2 face="serif">Robert S. Kapito, President</font></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><font size=2 face="sans-serif"><b>BlackRock Global Floating Rate Income Trust</b></font></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><HR noshade  width="70%" size=1></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><font size=2 face="serif">40 East 52nd Street, New York, NY 10022</font></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><HR noshade  width="70%" size=1></td>
  </tr>
  <tr>
    <td colspan="2" align="center"><font size=2 face="serif">(Name and address of agent for service) </font></td>
  </tr>
  <tr>
    <td colspan="2" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="center">&nbsp;</td>
  </tr>
</table>
<P align="left">
  <FONT size=2 face="serif">Registrant's telephone number, including area code: </FONT><U><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;888-825-2257&nbsp;&nbsp;&nbsp;</FONT></U></P>
<P>
<FONT size=2 face="serif">Date of fiscal year end: <U>&nbsp;&nbsp;&nbsp;December 31, 2004&nbsp;&nbsp;&nbsp;</U></FONT></P>
<P>
<FONT size=2 face="serif">Date of reporting period:<U>&nbsp;&nbsp;&nbsp; December 31, 2004&nbsp;&nbsp;&nbsp;</U></FONT></P>
<hr noshade  width="100%" size=4>
<BR>

<PAGE>

<P>
<B><FONT size=2 face="serif">Item 1. Reports to Shareholders.<br>
</FONT></B><FONT size=2 face="serif">The Registrant&#146;s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:</FONT></P>

<p></p><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=18% align=center>
<FONT size=1 face="sans-serif">FIXED INCOME</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=13% align=center>
<FONT size=1 face="sans-serif">LIQUIDITY</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=center>
<FONT size=1 face="sans-serif">EQUITIES</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=18% align=center>
<FONT size=1 face="sans-serif">ALTERNATIVES</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=31% align=center>
<FONT size=1 face="sans-serif">BLACKROCK SOLUTIONS</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<P>
<FONT size=5 face="sans-serif">BlackRock <br>
Closed-End Funds <br>
Annual Report</FONT></P>
<P><FONT size=2 face="sans-serif">DECEMBER 31, 2004</FONT></P>
<hr size="3" noshade>
<P><FONT size=2 face="sans-serif">BlackRock Advantage Term Trust (BAT)</FONT></P>
<P>
<FONT size=2 face="sans-serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT></P>
<P>
<FONT size=2 face="sans-serif">BlackRock Preferred Opportunity Trust (BPP)</FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<table width="100%"  border="0">
  <tr>
    <td><FONT size=1 face="sans-serif">NOT FDIC INSURED <br>
MAY LOSE VALUE <br>
NO BANK GUARANTEE</FONT></td>
    <td><div align="right"><IMG src="c35834_ncsrx1x1.jpg" border=0></div></td>
  </tr>
</table>
<P>&nbsp;</P>

<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=91% align=left>
<FONT face="serif">Letter to Shareholders</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT face="serif">1</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Trusts&#146; Summaries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Portfolios of Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">5</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">20</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Cash Flows</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">22</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">23</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Highlights</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">24</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">27</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Report of Independent Registered Public Accounting Firm</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">34</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Directors/Trustees Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">35</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Dividend Reinvestment Plans</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">38</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">38</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<p><BR>
</p>
<hr size="1" noshade>
<p align="center"><B><FONT size=2 face="serif">Privacy Principles of the Trusts</FONT></B></p>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what
personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to
the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer
agent or third-party administrator).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical,
electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.</FONT></P>
<hr size="1" noshade>
<P>&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LETTER TO SHAREHOLDERS</FONT></B></P>
<P align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">December 31, 2004</FONT></P>
<P><FONT size=2 face="serif"> Dear Shareholder: </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that during the annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This
    report contains the Trusts&#146; audited financial statements and a listing of the portfolios&#146; holdings.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The portfolio management team continuously monitors the fixed income markets and adjusts the portfolios in order to gain exposure to various issuers and security types. This strategy enables
the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table shows the Trusts&#146; yields, closing market prices per share and net asset values (&#147;NAV&#148;) per share as of December 31, 2004.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width=69% align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Trust
               (Ticker)</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B> </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Market Price</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">NAV</FONT></B>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="69%"><HR noshade size=1>
      </TD>
      <TD width="7%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="1%"><HR noshade size=1>
      </TD>
      <TD width="9%"><HR noshade size=1>
      </TD>
      <TD width="1%"><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="69%" align=left><FONT size=2 face="serif">BlackRock Advantage
            Term Trust (BAT)</FONT>&nbsp; </TD>
      <TD width="7%" align=right><FONT size=2 face="serif">6.69</FONT> </TD>
      <TD width="5%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
      <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
      <TD width="9%" align=center><FONT size=2 face="serif">10.47</FONT>&nbsp; </TD>
      <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=center><FONT size=2 face="serif">10.49</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="69%"><HR noshade size=1>
      </TD>
      <TD width="7%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="9%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="69%" align=left><FONT size=2 face="serif">BlackRock Global Floating
            Rate Income Trust (BGT)</FONT>&nbsp; </TD>
      <TD width="7%" align=right><FONT size=2 face="serif">6.01</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="9%" align=center><FONT size=2 face="serif">18.63</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=center><FONT size=2 face="serif">19.21</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="69%"><HR noshade size=1>
      </TD>
      <TD width="7%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="9%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="69%" align=left><FONT size=2 face="serif">BlackRock Preferred
            Opportunity Trust (BPP)</FONT>&nbsp; </TD>
      <TD width="7%" align=right><FONT size=2 face="serif">7.88</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="9%" align=center><FONT size=2 face="serif">25.39</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=center><FONT size=2 face="serif">25.88</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
        <TD width="5%" valign=top nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width="95%">
<FONT size=1 face="serif">Yield is based on market price.</FONT>        </TD>
</TR>
</TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock, Inc. (&#147;BlackRock&#148;), a world leader in asset management, has a proven commitment to managing fixed income securities. As of December 31, 2004, BlackRock managed &#36;239
billion in bonds, including 20 open-end and 47 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world&#146;s largest institutional investors.
BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., are wholly owned subsidiaries of BlackRock, Inc.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On behalf of BlackRock, we thank you for your continued confidence and assure you that we remain committed to excellence in managing your assets.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD align=left><font size="2" face="serif">Sincerely,</font> <br>
      <IMG src="c35834_ncsrx3x1.jpg" width="201" height="46" border=0></TD>
   <TD>&nbsp;</TD>
   <TD align=left><IMG src="c35834_ncsrx3x2.jpg" width="141" height="70" border=0></TD>
</TR>
<TR valign="bottom">
        <TD width=38% align=left>
<FONT size=2 face="serif">Laurence D. Fink</FONT>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=53% align=left>
<FONT size=2 face="serif">Ralph L. Schlosstein</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Chief Executive Officer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">President</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">CONSOLIDATED TRUST SUMMARIES <br>DECEMBER 31, 2004</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Advantage Term Trust (BAT)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
<TR valign="bottom">
        <TD width=84% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BAT</FONT>
        </TD>
  </TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 27, 1990</FONT>
        </TD>
  </TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Termination Date (on or shortly before):</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">December 31, 2005</FONT>
        </TD>
  </TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Closing Market Price as of 12/31/04:</FONT>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;10.47</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Net Asset Value as of 12/31/04:</FONT>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;10.49</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 12/31/04 (&#36;10.47):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">6.69</FONT>
        </TD>
        <TD width="5%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;0.058333</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;0.699996</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
</TABLE>

<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT><br>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
   <TD>&nbsp;</TD>
   <TD colspan="6"><HR noshade size=1></TD>
  </TR>
<TR align="center" valign="bottom">
        <TD width=25%>&nbsp;

        </TD>
        <TD width=15%>
<B><FONT size=2 face="serif">12/31/04</FONT></B>&nbsp;
        </TD>
        <TD width=15%>
<B><FONT size=2 face="serif">12/31/03</FONT></B>&nbsp;
        </TD>
        <TD colspan="2">
<B><FONT size=2 face="serif">Change</FONT></B>
        </TD>
        <TD width=15%>
<B><FONT size=2 face="serif">High</FONT></B>&nbsp;
        </TD>
        <TD width=15%>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="25%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="25%" align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10.47</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;11.30</FONT>&nbsp;
        </TD>
        <TD width="8%" align=right>
<FONT size=2 face="serif">(7.35</FONT>
        </TD>
        <TD width="7%" align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;11.47</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10.35</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="25%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="8%">

<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="25%" align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10.49</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;11.40</FONT>&nbsp;
        </TD>
        <TD width="8%" align=right>
<FONT size=2 face="serif">(7.98</FONT>
        </TD>
        <TD width="7%" align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;11.48</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10.48</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="25%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following chart shows the portfolio composition of the Trust&#146;s long-term investments:</FONT></P>
<P align="center"> &nbsp;<B><FONT size=2 face="serif">Portfolio Composition</FONT></B> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD width="10%"><HR noshade size=1></TD>
        <TD width="10%"><HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=60% align=left>
<B><FONT size=2 face="serif">Composition</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">December 31, 2003</FONT></B>
        </TD>
  </TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">U.S. Government and Agency Zero</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Coupon Bonds</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">72</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Agency Multiple Class Mortgage</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Pass-Through Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Taxable Municipal Bonds</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Corporate Bonds</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">U.S. Government and Agency Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Principal Only Mortgage-Backed Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Commercial Mortgage-Backed Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Inverse Floating Rate Mortgage Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Interest Only Mortgage-Backed Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Mortgage Pass-Through Securities</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="60%" align=left>
<FONT size=2 face="serif">Stripped Money Market Instruments</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="60%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr noshade size=1>
<BR>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">TRUST SUMMARIES <br>DECEMBER 31, 2004</FONT></B><br><br>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
<TR valign="bottom">
        <TD width=84% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BGT</FONT>
        </TD>
  </TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">August 30, 2004</FONT>
        </TD>
  </TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Closing Market Price as of 12/31/04:</FONT>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;18.63</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Net Asset Value as of 12/31/04:</FONT>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;19.21</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 12/31/04 (&#36;18.63):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">6.01</FONT>
        </TD>
        <TD width="5%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Current Quarterly Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;0.0933</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="84%" align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD width="11%" align=right>
<FONT size=2 face="serif">&#36;1.1196</FONT>
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="84%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
</TR>
</TABLE>

<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield
on closing market price is calculated by dividing the current annualized distribution
per share by the closing market price.<br>
</FONT><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is
subject to change.</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD align=left>&nbsp;</TD>
   <TD colspan="3" align=center><hr noshade size=1></TD>
  </TR>
<TR valign="bottom">
        <TD width=40% align=left>&nbsp;
        </TD>
        <TD width=20% align=center>
<B><FONT size=2 face="serif">12/31/04</FONT></B>&nbsp;
        </TD>
        <TD width=20% align=center>
<B><FONT size=2 face="serif">High</FONT></B>&nbsp;
        </TD>
        <TD width=20% align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="40%"><hr noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="40%" align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;18.63</FONT>&nbsp;
        </TD>
        <TD align=center>
 <FONT size=2 face="serif">&#36;</FONT>&nbsp;<FONT size=2 face="serif">20.02</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;18.33</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="40%">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="40%" align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;19.21</FONT>&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=2 face="serif">&#36;19.29</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;19.04</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="40%">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following chart shows the portfolio composition of the Trust&#146;s long-term investments and credit quality allocations of the Trust&#146;s corporate bond investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Portfolio Composition </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
<TR valign="bottom">
        <TD width=80% align=left>
<B><FONT size=2 face="serif">Composition</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Foreign Government Bonds</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD width="10%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Media</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Basic Materials</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Consumer Products</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Energy</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Health Care</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Entertainment &amp; Leisure</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Telecommunications</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Containers &amp; Packaging</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Financial Institutions</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Real Estate</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Technology</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>

</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Automotive</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Building &amp; Development</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Conglomerates</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Aero &amp; Defense</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Ecological Services &amp; Equipment</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Industrials</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=3>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=3>
<B><FONT size=2 face="serif">Corporate Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
</TR>
<TR>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD width="10%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="80%" align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="80%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
</TABLE>

<P>
_______________<br><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating. Corporate bonds represent approximately 18.1% of December 31, 2004, net assets. </FONT></P>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">CONSOLIDATED TRUST SUMMARIES <br>DECEMBER 31, 2004<br><br>
</FONT></B><B><FONT size=2 face="serif">BlackRock
Preferred Opportunity Trust (BPP)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width=84% align=left><FONT size=2 face="serif">Symbol on New York Stock
            Exchange:</FONT>&nbsp; </TD>
      <TD colspan="2" align=center><FONT size=2 face="serif">BPP</FONT> </TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp; </TD>
      <TD colspan="2" align=center><FONT size=2 face="serif">February 28, 2003</FONT> </TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Closing Market Price
            as of 12/31/04:</FONT>&nbsp; </TD>
      <TD width="11%" align=right><FONT size=2 face="serif">&#36;25.39</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Net Asset Value as
            of 12/31/04:</FONT>&nbsp; </TD>
      <TD width="11%" align=right><FONT size=2 face="serif">&#36;25.88</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Yield on Closing Market
            Price as of 12/31/04 (&#36;25.39):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp; </TD>
      <TD width="11%" align=right><FONT size=2 face="serif">7.88</FONT> </TD>
      <TD width="5%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Current Monthly Distribution
            per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; </TD>
      <TD width="11%" align=right><FONT size=2 face="serif">&#36;0.166667</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="84%" align=left><FONT size=2 face="serif">Current Annualized
            Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; </TD>
      <TD width="11%" align=right><FONT size=2 face="serif">&#36;2.000004</FONT> </TD>
      <TD width="5%" align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="84%"><HR noshade size=1>
      </TD>
      <TD width="11%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
   </TR>
</TABLE>

<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT><br>
<SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
   <tr align="center" valign="bottom">
      <td width=25%>&nbsp;</td>
      <td width=16%><b><font size=2 face="serif">12/31/04</font></b>&nbsp; </td>
      <td width=16%><b><font size=2 face="serif">12/31/03</font></b>&nbsp; </td>
      <td colspan="2"><b><font size=2 face="serif">Change</font></b> </td>
      <td width=16%><b><font size=2 face="serif">High</font></b>&nbsp; </td>
      <td width=16%><b><font size=2 face="serif">Low</font></b>&nbsp; </td>
   </tr>
   <tr>
      <td width="25%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td width="8%"><hr noshade size=1>
      </td>
      <td width="7%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
   </tr>
   <tr valign="bottom">
      <td width="25%" align=left><font size=2 face="serif">Market Price</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;25.39</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;24.83</font>&nbsp; </td>
      <td width="8%" align=right><font size=2 face="serif">2.26</font> </td>
      <td align=left><font size=2 face="serif">%</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;25.50</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;21.25</font>&nbsp; </td>
   </tr>
   <tr>
      <td width="25%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td width="8%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="center"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
   </tr>
   <tr valign="bottom">
      <td width="25%" align=left><font size=2 face="serif">NAV</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;25.88</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;25.58</font>&nbsp; </td>
      <td width="8%" align=right><font size=2 face="serif">1.17</font> </td>
      <td align=left><font size=2 face="serif">%</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;26.48</font>&nbsp; </td>
      <td align=center><font size=2 face="serif">&#36;24.18</font>&nbsp; </td>
   </tr>
   <tr>
      <td width="25%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td width="8%"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="center"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
   </tr>
</table>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Portfolio Composition </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width=60% align=left><B><FONT size=2 face="serif">Composition</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">December 31,
               2004</FONT></B> </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">December 31,
               2003</FONT></B> </TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Financial Institutions</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">71</FONT> </TD>
      <TD width="10%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">63</FONT> </TD>
      <TD width="10%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Real Estate</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">12</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">9</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Energy</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">7</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">13</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Media</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">3</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">2</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Consumer Products</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">2</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">2</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Telecommunications</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">2</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Automotive</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Basic Materials</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Containers &amp; Packaging</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Conglomerates</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Transportation</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Other</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">6</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=center colspan=5><B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
   </TR>
   <TR>
      <TD colspan=5><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">December 31, 2004</FONT></B> </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">December 31,
               2003</FONT></B> </TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD width="10%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1></TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">AA/Aa</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">20</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">16</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">A</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">33</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">32</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">BBB/Baa</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">27</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">30</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">BB/Ba</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">10</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">8</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">B</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">9</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">12</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="60%" align=left><FONT size=2 face="serif">Not Rated</FONT>&nbsp; </TD>
      <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="10%" align=right><FONT size=2 face="serif">1</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="60%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
</TABLE>

<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#148;), Moody&#146;s Investors Service (&#147;Moody&#146;s&#148;) or Fitch Ratings (&#147;Fitch&#148;)
rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">CONSOLIDATED PORTFOLIO OF INVESTMENTS <br>
DECEMBER 31, 2004<br><br>
</FONT></B><B><FONT size=2 face="serif">BlackRock Advantage
Term Trust (BAT)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR align="center" valign="bottom">
      <TD width=10%>&nbsp;</TD>
      <TD colspan="3"><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70%>&nbsp;</TD>
      <TD width=1%></TD>
      <TD width=8%>&nbsp;</TD>
      <TD width=1%>&nbsp;</TD>
   </TR>
   <TR align="center" valign="bottom">
      <TD><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3"><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%">&nbsp;</TD>
      <TD></TD>
      <TD width="8%">&nbsp;</TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR align="center" valign="bottom">
      <TD><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%"><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;126.2%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Mortgage Pass-Through
               Securities&#151;0.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">158</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp., 6.50%, 8/01/25 - 10/01/25</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">166,822</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal National Mortgage
            Assoc., 9.50%, 7/01/20</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,239</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">262</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Government National
            Mortgage Assoc., 8.00%, 1/15/26 - 7/15/27</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">284,745</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>

      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Mortgage Pass-Through
            Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">452,806</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Agency Multiple
               Class Mortgage Pass-Through Securities&#151;7.9%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">640</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2534, Class NG, 3/15/22</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">640,351</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,751</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2772, Class GF, 4/15/34</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,754,617</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">158</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2822, Class WZ, 7/15/19</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">157,195</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">923</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2822, Class ZH, 5/15/33</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">926,098</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,914</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2865, Class OA, 8/15/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,924,956</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">122</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal National Mortgage
            Assoc., Ser. 43, Class E, 4/25/22</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">126,843</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,407</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Government National
            Mortgage Assoc., Ser. 88, Class ZB, 10/20/34</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,402,397</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Agency Multiple
            Class Mortgage Pass-Through Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,932,457</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Inverse Floating
               Rate Mortgage Securities&#151;1.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">77 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            1621, Class SH, 10.542%, 11/15/22</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">78,270</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">829 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2752, Class SV, 13.164%, 9/15/33</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">836,230</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">303 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal National Mortgage
            Assoc., Ser. 190, Class S, 18.21%, 11/25/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">340,031</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Inverse Floating
            Rate Mortgage Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,254,531</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Interest Only Mortgage-Backed
               Securities&#151;0.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Deutsche Mortgage
            Secs., Inc. Mortgage Loan Trust, Ser. 2, Class AIO, 2/25/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">220,320</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">105</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            1543, Class VU, 4/15/23</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,658</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">139</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            1588, Class PM, 9/15/22</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,335</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,189</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2543, Class IJ, 10/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">232,585</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,578</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            2620, Class WI, 4/15/33</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">222,696</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal National Mortgage
            Assoc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">133</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            188, Class VA, 3/25/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,844</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">354</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            194, Class PV, 6/25/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">9,198</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">136</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            223, Class PT, 10/25/23</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">12,639</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Interest Only
            Mortgage-Backed Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">718,275</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Principal Only
               Mortgage-Backed Securities&#151;2.2%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">10</FONT> </TD>
      <TD width="3%" align=left><FONT size=1 face="serif">&nbsp; </FONT><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Collateralized Mortgage
            Obligation Trust, Ser. 29, Class A, 5/23/17</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">9,497</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal National Mortgage
            Assoc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,444</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            193, Class E, 9/25/23</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,016,159</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,353</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            225, Class ME, 11/25/23</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,132,733</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Principal Only
            Mortgage-Backed Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,158,389</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>

      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Commercial Mortgage-Backed
               Securities&#151;2.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">Aaa</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,868 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">3</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">New York City Mortgage
            Loan Trust, Multi-Family, Class A2, 6.75%, 6/25/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,976,131</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Asset-Backed Securities&#151;0.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">397</FONT><SUP></SUP></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2,3,4,5</FONT></SUP></TD>
      <TD align=left><FONT size=1 face="serif">Global Rated Eligible Asset Trust,
            Ser. A, Class 1, 7.33%, 9/15/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,937</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">850</FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2,4,5</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Structured Mortgage
            Asset Residential Trust, Ser. 3, 8.724%, 4/15/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,497</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Asset-Backed
            Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">16,434</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Collateralized
               Mortgage Obligation Residuals&#151;0.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">10</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp., Ser. 1035, Class R, 1/15/21</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">0</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">U.S. Government
               and Agency Zero Coupon Bonds&#151;96.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">12,407</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Aid to Israel, 2/15/05
            - 8/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">12,290,628</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">11,026</FONT> </TD>
      <TD width="3%" align=left><FONT size=1 face="serif">&nbsp; </FONT><SUP><FONT size=1 face="serif">6</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Financing Corp. (FICO)
            Strips, 12/06/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">10,729,996</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Government Trust Certificates,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,220</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Israel,
            Ser. 2F, 5/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,167,330</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">13,760</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Turkey,
            Ser. T-1, 5/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,621,162</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">22,926 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">6</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Resolution Funding
            Corp., 7/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">22,658,225</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,216</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Tennessee Valley Authority,
            11/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,065,448</FONT>&nbsp; </TD>
      <TD width="1%" align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Advantage Term Trust (BAT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left></TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" align=center><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">U.S. Government
               and Agency Zero Coupon Bonds&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">U.S. Treasury Strips,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">18,000 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">6</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8/15/05</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD align=right><FONT size=1 face="serif">17,715,528</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">11/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">7,812,192</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total U.S. Government
            and Agency Zero Coupon Bonds</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">96,060,509</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Corporate Bonds&#151;5.6%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Energy&#151;1.1%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">3</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Israel Electric Corp.,
            Ltd., 7.25%, 12/15/06 (Israel)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,064,520</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;2.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">950</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Citigroup, Inc., 5.75%,
            5/10/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">982,347</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,070 </FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">3</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Equitable Life Assurance
            Society, zero coupon, 6/01/05 - 12/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,033,875</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">2,016,222</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Telecommunications&#151;1.1%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Alltel Corp., 7.50%,
            3/01/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,048,740</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Transportation&#151;1.4%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,453</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Union Pacific Corp.,
            zero coupon, 5/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,435,653</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">5,565,135</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">U.S. Government
               and Agency Securities&#151;3.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">360</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Small Business Investment
            Companies, Ser. P10A, Class 1, 6.12%, 2/01/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">375,952</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">U.S. Treasury Notes,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,450</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">3.50%,
            11/15/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,462,235</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,150</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">4.00%,
            2/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,134,544</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total U.S. Government
            and Agency Securities</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">2,972,731</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Taxable Municipal
               Bonds&#151;6.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Alameda Cnty. California
            Pension Oblig., zero coupon, 12/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">971,140</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Alaska Energy Auth.,
            zero coupon, 7/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">989,740</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aaa</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,067</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Kern Cnty. California
            Pension Oblig., zero coupon, 2/15/05 - 8/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,046,816</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Long Beach California
            Pension Oblig.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,068</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">zero
            coupon, 3/01/05 - 9/01/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,046,043</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.09%,
            9/01/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">564,328</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Los Angeles Cnty.
            California Pension Oblig.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aaa</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">34</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">zero
            coupon, 6/30/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">33,320</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aaa</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.77%,
            6/30/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">984,350</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            A, 8.62%, 6/30/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">1,078,650</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Taxable Municipal
            Bonds</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">6,714,387</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=1 face="serif">Total Long-Term
               Investments (cost &#36;122,868,063)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">125,821,785</FONT></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">SHORT-TERM INVESTMENT&#151;14.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">U.S. Government
               and Agency Zero Coupon Bond</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">14,300</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Bank, zero coupon, 1/03/05 (cost &#36;14,299,007)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">14,299,007</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=1 face="serif">Total investments&#151;140.5%
               (cost &#36;137,167,070)</FONT></B>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD align=right><FONT size=1 face="serif">140,120,792</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Liabilities in excess
            of other assets &#151;(40.5)%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">(40,388,065</FONT></TD>
      <TD align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
   </TR>
   <TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD align=right><FONT size=1 face="serif">99,732,727</FONT></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD>&nbsp;      </TD>
   </TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>       </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Security interest rate is as of December 31, 2004.</FONT>     </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2004, the Trust
held 4.1% of its net assets, with a current market value of &#36;4,082,463, in securities restricted as to resale.</FONT>       </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Security is fair valued.</FONT>       </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Illiquid securities representing 0.02% of net assets.</FONT>  </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">6</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for reverse repurchase agreements.</FONT>    </TD>
</TR>
</TABLE>
<P>
<FONT size=1 face="serif">Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS <br>DECEMBER 31, 2004</FONT></B><br><br>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1%>&nbsp;</TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.5%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Corporate Bonds&#151;18.1%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Automotive&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left><FONT size=1 face="serif">&#36;</FONT>&nbsp; </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Arvinmeritor, Inc.,
            8.75%, 3/01/12</FONT>&nbsp; </TD>
      <TD><FONT size=1 face="serif">&#36;</FONT></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">862,538</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Basic Materials&#151;1.3%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">700</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">BCP Caylux Holdings
            SCA, 9.625%, 6/15/14 (Luxembourg)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">786,625</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">665</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Boise Cascade LLC,
            5.005%, 10/15/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">689,938</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B1</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Foundation Pennsylvania
            Coal Co., 7.25%, 8/01/14</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">802,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">225</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Georgia Pacific Corp.,
            8.00%, 1/15/24</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">263,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Ba3</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Hercules, Inc., 6.75%,
            10/15/29</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">774,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Huntsman Intl., LLC,
            9.875%, 3/01/09</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">824,062</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">225</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Intl. Steel Group,
            Inc., 6.50%, 4/15/14</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">241,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lyondell Chemical
            Co.,</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">300</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">11.125%,
            7/15/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">355,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">300</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            A, 9.625%, 5/01/07</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">330,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nalco Co., 8.875%,
            11/15/13</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">823,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,891,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Building &amp; Development&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Ainsworth Lumber Co.
            Ltd., 6.29875%, 10/01/10 (Canada)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,026,980</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Conglomerates&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Trimas Corp., 9.875%,
            6/15/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">795,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Consumer Products&#151;0.4%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B2</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Duane Reade, Inc.,
            7.01%, 12/15/10</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,018,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lazy Days RV Center,
            Inc., 11.75%, 5/15/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">435,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">350</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Stoneridge, Inc.,
            11.50%, 5/01/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">408,188</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,861,938</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Containers &amp; Packaging&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Crown European Holdings
            SA, 10.875%, 3/01/13 (France)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">886,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;0.1%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">625</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Allied Waste NA, Inc.,
            Ser. B, 5.75%, 2/15/11</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">587,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Energy&#151;8.5%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">AES Corp., 9.00%,
            5/15/15</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">857,812</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Compton Petroleum
            Corp., Ser. A, 9.90%, 5/15/09 (Canada)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">828,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B1</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Edison Mission Energy,
            10.00%, 8/15/08</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">862,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">El Paso Production
            Holding Co., 7.75%, 6/01/13</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">787,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">14,430</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Gazprom, 9.625%, 3/01/13
            (Russia)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">17,109,651</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Hanover Compressor
            Co., 9.00%, 6/01/14</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">840,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">730</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">KCS Energy, Inc.,
            7.125%, 4/01/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">768,325</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B1</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">NRG Energy, Inc.,
            8.00%, 12/15/13</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">817,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Baa1</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">12,700</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Pemex Project Funding
            Master Trust, Ser. 15, 3.87%, 10/15/09</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,303,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Baa1</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">800</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Petroleos Mexicanos,
            9.375%, 12/02/08 (Mexico)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">939,200</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Reliant Energy, Inc.,</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">250</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.75%,
            12/15/14</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">250,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">9.25%,
            7/15/10</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">840,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">300</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Swift Energy Co.,
            7.625%, 7/15/11</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">324,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">38,529,238</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">MGM Mirage, 5.875%,
            2/27/14</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">738,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;2.4%</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Crum &amp; Forster
            Holdings Corp., 10.375%, 6/15/13</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">836,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,455</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Kazkommerts Intl.
            BV, 8.50%, 4/16/13 (Netherlands)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,729,113</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Kazkommertsbank Intl.
            BV, 8.50%, 4/16/13 (Netherlands)</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,135,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">25</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Marsh &amp; McLennan
            Cos, Inc., 2.193%, 7/13/07</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">24,505</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B3</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rainbow National Services
            LLC, 8.75%, 9/01/12</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">821,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">300</FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Universal City Florida
            Holding Co., 7.20%, 5/01/10</FONT>&nbsp; </TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">312,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD width="8%" align=right><FONT size=1 face="serif">10,858,868</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1></TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>
<hr noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR align="center" valign="bottom">
      <TD width="10%">&nbsp;</TD>
      <TD colspan="3"><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width="70%">&nbsp;</TD>
      <TD width="1%"></TD>
      <TD width="8%">&nbsp;</TD>
      <TD width="1%">&nbsp;</TD>
   </TR>
   <TR align="center" valign="bottom">
      <TD width="10%"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3"><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%">&nbsp;</TD>
      <TD></TD>
      <TD width="8%">&nbsp;</TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR align="center" valign="bottom">
      <TD width="10%"><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Health Care&#151;0.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">IASIS Healthcare LLC,
            8.75%, 6/15/14</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">817,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">650</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Universal Hospital
            Services, Inc., 10.125%, 11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">676,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B2</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">US Oncology, Inc.,
            9.00%, 8/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">838,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,331,625</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Industrials&#151;0.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Cenveo Corp., 7.875%,
            12/01/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">372,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">CCC+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">350</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Park Ohio Industries,
            Inc., 8.375%, 11/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">349,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">United Rentals NA,
            Inc., 7.00%, 2/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">705,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,426,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Media&#151;0.8%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">CCC+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Charter Communications
            Holdings II, LLC, 10.25%, 9/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">795,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">350</FONT></TD>
      <TD width="3%" align=left><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Choctaw Resort Development
            Enterprise, 7.25%, 11/15/19</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">353,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Echostar DBS Corp.,
            6.375%, 10/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">768,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Primedia, Inc., 7.625%,
            4/01/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">759,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">WMG Holdings Corp.,
            6.905%, 12/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">755,625</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,432,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Real Estate&#151;1.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,350</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rouse Co., 5.375%,
            11/26/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,090,920</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Technology&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Ba3</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Celestica, Inc., 7.875%,
            7/01/11 (Canada)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">804,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Telecommunications&#151;1.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Cincinnati Bell, Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.25%,
            7/15/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">410,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.375%,
            1/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">406,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Dobson Cellular Systems,
            Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B2</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">325</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.96%,
            11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">336,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B2</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">350</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.375%,
            11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">361,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nextel Communications,
            Inc., 5.95%, 3/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">778,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Qwest Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.875%,
            9/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">813,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">14.00%,
            12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">901,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT><SUP></SUP> </TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rogers Wireless Communications,
            Inc., 5.525%, 12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">419,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,426,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Transportation&#151;0.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B3</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400</FONT></TD>
      <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Horizon Lines LLC,
            9.00%, 11/01/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">432,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">OMI Corp., 7.625%,
            12/01/13 (Marshall Islands)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">802,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,234,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">81,785,232</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Bank Loans&#151;105.4%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;1.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">CACI Intl., Inc.,
            Term Loan, LIBOR + 1.50%, 2/04/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,016,678</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">MRO Acquisition LLC,
            Term Loan, LIBOR + 5.25%, 9/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,018,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,631</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Standard Aero, Inc.,
            Term Loan, LIBOR + 2.50%, 8/18/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,665,298</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,700,726</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Automotive&#151;3.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,897</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Plastech, Inc., Term
            Loan B, LIBOR + 2.75%, 2/12/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,924,297</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Polar Corp., Term
            Loan, LIBOR, 5/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,785,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Progressive Moulded
            Products, Ltd., Term Loan B, LIBOR + 2.50%, 8/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,003,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">TI Group Automotive
            Systems NA, Term Loan C, LIBOR + 3.25%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,960,625</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">TRW Automotive, Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan, LIBOR + 1.50%, 6/30/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,501,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan E, LIBOR + 1.50%, 10/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,510,157</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,685,704</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" align=center><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Basic Materials&#151;13.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Appleton Papers, Inc.,
            Term Loan, LIBOR + 2.25%, 6/30/10</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,016,343</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Boise Cascade LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B, LIBOR + 2.25%, 10/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,043,332</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,178</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan C, LIBOR + 2.25%, 10/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,183,305</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Buckeye Technologies,
            Inc., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">904</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.50%, 4/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">915,466</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">69</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 1.50%, 4/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">70,342</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Celanese AG, Term
            Loan</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.25%, 6/03/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,013,288</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">620</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.50%, 6/03/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">626,056</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Cognis Deutschland,
            Term Loan, LIBOR + 4.75%, 11/15/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,070,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,638</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Foundation Coal Corp.,
            Term Loan B, LIBOR + 2.50%, 7/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,660,824</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">997</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Hercules, Inc., Term
            Loan B, LIBOR + 1.75%, 4/07/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,001,976</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Huntsman Intl., LLC,
            Term Loan B, LIBOR + 2.50%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,030,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Huntsman LLC, Term
            Loan, LIBOR + 3.50%, 3/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,591,669</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Innophos, Inc., Term
            Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,228</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.75%, 8/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,264,591</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">764</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">0.50%,
            8/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">772,227</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,882</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Invista, Term Loan,
            LIBOR + 2.75%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,964,743</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,231</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Koch Cellulose, LLC,
            Term Loan, LIBOR + 2.25%, 5/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,239,981</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Kraton Polymers, LLC,
            Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">222</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.75%, 12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">224,699</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 1.50%, 12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">567</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,831</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nalco Co., Term Loan
            B, LIBOR + 2.00%, 11/04/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,909,071</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">988</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Professional Paint,
            Inc., Term Loan, LIBOR + 3.25%, 9/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">999,844</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,990</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Ripplewood Phosphorus
            US, LLC, Term Loan, LIBOR + 3.00%, 7/16/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,014,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rockwood Specialties
            Group, Inc., Term Loan D, LIBOR + 2.25%, 8/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,537,576</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,458</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rollcoater, Term Loan,
            LIBOR + 3.25%, 11/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,452,188</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">United Industries
            Corp., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.50%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,029,775</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,990</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 4.50%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,019,850</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">61,652,588</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Building &amp; Development&#151;2.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Juno Lighting, Inc.,
            Term Loan, LIBOR + 5.50%, 5/10/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,027,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Landsource Communities
            Development, LLC, Term Loan B, LIBOR + 2.50%, 3/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,027,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nortek, Inc., Term
            Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">929</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.50%, 8/24/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">943,080</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">69</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 1.50%, 8/24/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">70,006</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Ply Gem Industries,
            Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B, LIBOR + 2.50%, 10/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,515,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">306</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">CND Term
            Loan, LIBOR + 2.50%, 10/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">309,075</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,691</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">USD Term
            Loan, LIBOR + 2.50%, 10/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,708,394</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Resolution Specialty
            Materials, Term Loan, LIBOR + 2.75%, 8/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,534,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">11,134,930</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Business Equipment &amp; Services&#151;0.2%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Latham Intl. Ltd.,
            Term Loan, LIBOR + 4.00%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">995,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Conglomerates&#151;3.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,483</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Honeywell Security
            Group, Term Loan B, LIBOR + 4.00%, 6/28/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,512,972</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Invensys Intl. Holdings
            Ltd., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 4.75%, 11/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,052,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 3.00%, 3/05/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,980,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">984</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B1, LIBOR + 3.50%, 8/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">997,999</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,736</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Polypore, Inc., Term
            Loan, LIBOR + 2.25%, 11/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,770,453</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,313,924</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Consumer Products&#151;14.1%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Ames True Temper,
            Inc., Term Loan B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,986</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 3.00%, 6/23/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,008,675</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%" align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 1.75%, 6/23/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,335</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Consumer Products&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Berkline/BenchCraft
            Holdings, LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" 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="serif">&#36;</FONT>&nbsp; </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan, PRIME + 6.75%, 4/30/12</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,020,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B, PRIME + 6.75%, 10/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,005,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Carrols Corp., Term
            Loan, LIBOR + 2.50%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,820</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Church &amp; Dwight
            Co., Inc., Term Loan B, LIBOR + 1.75%, 5/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,839,620</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,566</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">CKE Restaurants, Inc.,
            Term Loan, LIBOR + 2.75%, 5/17/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,589,914</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,977</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Coinmach Service Corp.,
            Term Loan B, LIBOR + 3.00%, 7/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,996,629</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Constellation Brands,
            Inc., Term Loan, LIBOR + 1.75%, 12/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,026,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Culligan Water Co.,
            Term Loan B, LIBOR + 2.75%, 10/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">761,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Denny&#146;s Corp.,
            Term Loan, LIBOR, 8/25/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,591,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Desa LLC, Term Loan,
            PRIME + 2.00%, 12/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,022,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">998</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Doane Pet Care Co.,
            Term Loan, LIBOR + 4.00%, 11/15/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,012,463</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Herbalife, Term Loan,
            LIBOR + 2.25%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">506,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Jarden Corp., Term
            Loan, LIBOR + 2.00%, 1/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,513,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,845</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Knoll, Inc., Term
            Loan, LIBOR + 3.00%, 10/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,862,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Landrys Restaurants,
            Term Loan, LIBOR + 1.75%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,010,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,921</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Language Line, Inc.,
            Term Loan B, LIBOR + 4.25%, 6/14/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,953,914</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Maidenform, Inc.,
            Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">297</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.25%, 5/14/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">299,591</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">587</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 7.50%, 5/11/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">598,358</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,944</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">National Bedding Co.,
            LLC, Term Loan B, LIBOR + 2.25%, 8/25/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,973,599</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Olympus Cable Holdings,
            LLC, Term Loan B, PRIME + 2.00%, 9/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,474,296</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Oriental Trading Co.,
            Inc., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,441</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.75%, 8/06/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,444,187</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 6.00%, 12/02/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,015,417</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,496</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">OSI Group LLC, Term
            Loan, LIBOR + 2.50%, 9/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,564,883</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,838</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Pierre Foods, Inc.,
            Term Loan B, LIBOR + 2.75%, 7/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,861,145</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Prestige Brands Holdings,
            Inc., Term Loan B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR,
            4/07/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,004,850</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 1.75%, 4/07/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,050</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Propex Fabrics, Inc.,
            Term Loan, LIBOR + 2.25%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,005,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">R.H. Donnelley, Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">722</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan, LIBOR + 1.75%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">728,718</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,190</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan D, LIBOR + 1.75%, 12/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,210,790</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,993</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Rite Aid Corp., Term
            Loan, LIBOR + 1.75%, 9/15/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,007,463</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Travel Centers of
            America, Inc., Term Loan C, LIBOR + 1.75%, 11/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,007,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">United Subcontractors,
            Inc., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 3.25%, 4/21/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,010,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 7.00%, 10/21/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">503,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">63,453,647</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Containers &amp; Packaging&#151;4.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,715</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Berry Plastics Corp.,
            Term Loan C, LIBOR + 2.00%, 3/11/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,747,637</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">FlexSol Packaging
            Corp., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 3.25%, 11/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,002,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 7.00%, 11/30/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Graham Packaging Co.,
            Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B, LIBOR, 10/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,583,571</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan C, LIBOR, 4/01/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,049,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,576</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Graphic Packaging
            Intl., Inc., Term Loan C, LIBOR + 2.50%, 8/08/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,636,358</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Smurfit Stone Containter
            Corp., Term Loan B, LIBOR + 2.00%, 11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,014,250</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Solo Cup Co., Term
            Loan, LIBOR + 2.50%, 2/27/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,037,199</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">21,085,515</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;1.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,963</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Allied Waste NA, Inc.,
            Term Loan B, LIBOR + 2.75%, 1/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,987,281</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,773</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Envirosolutions, Inc.,
            Term Loan, LIBOR + 4.50%, 2/28/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,759,033</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,746,314</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70 align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD align=center><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Energy&#151;4.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" 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="serif">&#36;</FONT>&nbsp; </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">AES Corp., Term Loan, LIBOR +
            2.25%, 4/30/08</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,521,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Belden &amp; Blake Corp., Term
            Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,780</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.75%, 7/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,786,675</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">15</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME + 1.75%, 7/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">15,056</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Coleto Creek WLE LP, Term Loan
            C, LIBOR + 3.50%, 8/05/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">508,334</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,990</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Dynegy Holdings, Inc., Term Loan,
            LIBOR + 4.00%, 5/10/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,018,606</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">El Paso Corp., Term Loan B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,250</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.75%, 11/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,259,722</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.85%, 11/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">755,834</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Mainline LP, Term Loan, LIBOR
            + 2.375%, 12/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">505,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Reliant Energy, Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan, LIBOR
            + 4.00%, 3/15/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,033,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.375%, 4/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,070,002</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Semgroup, LP, Term Loan B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,980</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.25%, 9/01/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,007,225</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">20</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME + 1.75%, 9/01/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">20,275</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Texas Genco LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">585</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan, 5.00%,
            12/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">592,132</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,415</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.00%, 12/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,433,835</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">20,527,571</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;8.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Blockbuster Entertainment Corp.,
            Term Loan B, LIBOR + 2.50%, 8/20/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">995,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,990</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Boyd Gaming Corp., Term Loan B,
            LIBOR + 1.75%, 5/14/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,015,372</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,940</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Greektown Casino, LLC, Term Loan
            D, LIBOR + 3.50%, 12/31/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,954,467</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Kerasotes Theatres, Inc., Term
            Loan B, LIBOR + 2.75%, 11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,045,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,987</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Loews Cineplex Entertainment Corp.,
            Term Loan B, LIBOR + 2.25%, 8/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,049,843</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Marina District Finance Co., Inc.,
            Term Loan B, LIBOR + 4.50%, 10/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">MGM Mirage, Term Loan B, LIBOR
            + 2.50%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,004,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,573</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Penn National Gaming, Inc., Term
            Loan D, LIBOR + 2.50%, 9/01/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,577,062</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Universal City Development Partners,
            Ltd., Term Loan B, LIBOR + 2.00%, 6/30/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,724</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Venetian Casino Resorts LLC, Term
            Loan B, LIBOR + 1.50%, 8/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,751,694</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,241</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Wallace Theaters, Term Loan, LIBOR
            + 3.25%, 8/01/09 - 1/21/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,301,745</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Wyndham Intl., Inc.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,099</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan I, LIBOR
            + 4.75%, 6/30/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,128,610</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,373</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan II, LIBOR
            + 5.75%, 4/01/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,389,921</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Wynn Resorts, Term Loan, LIBOR
            + 2.45%, 12/31/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,046,669</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">38,289,383</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Financial Institutions&#151;2.4%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,872</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Global Cash Access, LLC, Term
            Loan, LIBOR + 2.75%, 3/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,897,917</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Jostens, Inc., Term Loan C, LIBOR
            + 2.00%, 10/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,025,716</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Refco Finance Holdings LLC, Term
            Loan B, LIBOR, 7/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,015,948</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Titan Corp., Term Loan B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,982</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.25%, 4/24/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,016,994</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">10</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME + 1.50%, 4/24/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">9,953</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">10,966,528</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Foreign Government&#151;1.4%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">6,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Kingdom of Morocco, LIBOR + 0.8125%,
            1/02/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,280,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Health Care&#151;10.6%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,975</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Accredo Health, Inc., Term Loan
            B, LIBOR + 1.75%, 8/05/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,012,331</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,617</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Advanced Medical Optics, Term
            Loan B, LIBOR + 2.25%, 6/30/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,630,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Arizant, Inc., Term Loan, LIBOR
            + 3.75%, 8/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">7,431</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Community Health Systems, Inc.,
            Term Loan, LIBOR + 1.75%, 8/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,485,951</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,846</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Concentra Operating Corp., Term
            Loan, LIBOR + 2.50%, 6/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,884,013</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Cooper Companies, Term Loan, LIBOR
            + 1.75%, 11/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">759,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,977</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Davita, Inc., Term Loan B, LIBOR
            + 2.00%, 6/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,980,099</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">HealthSouth Corp., Term Loan,
            LIBOR, 1/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,187,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">IASIS Healthcare Corp., Term Loan
            B, LIBOR + 2.50%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,025,423</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,743</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Jean Coutu Group, Inc., Term Loan
            B, LIBOR + 2.25%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,782,714</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,539</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Kinetic Concepts, Inc., Term Loan
            B2, LIBOR + 1.75%, 8/05/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,554,287</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD width=2% align=left></TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD align=center><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Health Care&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">875</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Medco Health Solutions, Term Loan,
            LIBOR + 1.25%, 3/13/08</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">879,740</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Pacificare Health Systems, Inc.,
            Term Loan B, LIBOR + 1.50%, 12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,000,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,993</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">US Oncology, Inc., Term Loan,
            LIBOR + 2.75%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,036,184</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,098</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Vanguard Health Systems, Term
            Loan, LIBOR + 3.25%, 9/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,144,737</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">48,378,104</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Industrials&#151;0.8%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">664</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Alderwoods Group, Inc., Term Loan
            B2, LIBOR + 2.00%, 9/29/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">670,231</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Exide Technologies, Term Loan,
            LIBOR + 3.50%, 5/01/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">980,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Tinnerman Palnut Engineered Products,
            Inc., Term Loan, LIBOR + 7.25%, 11/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,050,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,700,231</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Media&#151;19.1%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Advertising Directory Solutions,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan, LIBOR
            + 3.75%, 5/30/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,019,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.00%, 11/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,022,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Alliance Atlantis, Term Loan B,
            PRIME + 7.50%, 11/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,025,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Bragg Communications, Inc., Term
            Loan B, LIBOR + 2.50%, 9/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,019,938</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Bresnan Communications LLC, Term
            Loan B, LIBOR + 3.50%, 9/30/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,013,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Century TCI California LP,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan, PRIME
            + 0.75%, 12/31/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,994,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">10,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.50%, 12/31/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">9,928,570</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Charter Communications Operating,
            LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, LIBOR,
            4/27/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,998,124</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 3.25%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,996,039</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Dex Media East, LLC, Term Loan
            B,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,918</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 1.75%, 12/31/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,957,290</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">52</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME + 0.75%, 12/31/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">52,103</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Dex Media West, LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,160</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, LIBOR
            + 2.00%, 9/10/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,169,467</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">18</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, PRIME
            + 1.00%, 9/10/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">18,744</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,842</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 1.75%, 9/01/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,859,006</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">28</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, PRIME
            + 0.75%, 9/01/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">28,035</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>

      <TD align=left><FONT size=1 face="serif">Emmis Operating Co., Term Loan
            B, LIBOR, 5/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,018,334</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,750</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Freedom Communications, Inc.,
            Term Loan, LIBOR + 1.75%, 4/04/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,818,875</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Insight Midwest Holdings, LLC,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,681</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, LIBOR
            + 1.50%, 6/30/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,674,026</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">997</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.75%, 1/06/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,012,166</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,483</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Media News, Term Loan C, LIBOR
            + 3.125%, 8/25/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,499,912</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,300</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Mediacom Broadband LLC, Term Loan
            A, LIBOR + 1.50%, 3/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,284,907</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Mediacom Illinois LLC, Term Loan
            B, LIBOR + 2.25%, 3/31/13</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,005,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">698</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">NEP Supershooters LP, Term Loan,
            LIBOR + 4.00%, 2/01/11</FONT>&nbsp; </TD>
      <TD align=left></TD>

      <TD width="8%" align=right><FONT size=1 face="serif">709,597</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">New Skies Satellites, Term Loan
            B, LIBOR + 2.75%, 4/12/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,025,834</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Nexstar Broadcasting, Inc., Term
            Loan D, LIBOR + 1.75%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,992,463</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">NTL Investment Holding Ltd., Term
            Loan B, LIBOR + 3.00%, 4/13/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,025,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Raycom Media, Inc., Term Loan
            B, LIBOR + 1.75%, 4/01/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,528,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Transwestern Publishing Co., Term
            Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.25%, 2/25/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,516,407</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,987</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 4.50%, 2/25/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,028,544</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Warner Music Group, Corp., Term
            Loan B, LIBOR + 2.75%, 4/08/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,022,274</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Western Wireless Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,766</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, LIBOR
            + 2.25%, 5/28/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,792,607</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,993</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 3.00%, 5/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,036,319</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">86,091,331</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Real Estate&#151;2.7%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">General Growth Properties,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan A, LIBOR
            + 2.25%, 11/12/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,998,635</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term Loan B, LIBOR
            + 2.25%, 11/12/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,508,750</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Headwaters, Inc., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,688</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.25%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,732,056</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 5.50%, 4/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,030,833</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
   <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Real Estate&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lake Las Vegas Resort,
            Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="5%" align=right><FONT size=1 face="serif">828</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 2.50%, 10/13/09</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">831,983</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">172</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME,
            10/13/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">173,330</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">12,275,587</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Technology&#151;3.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Directed Electronics,
            Inc., Term Loan,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,762</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">LIBOR
            + 4.25%, 3/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,782,444</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">154</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">PRIME
            + 3.25%, 3/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">155,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,767</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Knowles Electronics,
            Inc., Term Loan B2, LIBOR + 5.00%, 6/29/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,780,721</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,990</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Network Communications,
            Inc., Term Loan B, LIBOR + 4.00%, 6/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,009,900</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">UGS PLM, Term Loan
            B, LIBOR + 2.25%, 5/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,029,775</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Verifone, Inc., Term
            Loan B, LIBOR + 2.50%, 6/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,029,776</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Westcom Corp., Term
            Loan B, PRIME + 1.75%, 12/31/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,015,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">14,802,616</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Telecommunications&#151;7.1%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Atlantic Broadband
            Finance, LLC, Term Loan B, LIBOR + 3.25%, 1/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,037,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,231</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Centennial Cellular
            Operating Co., Term Loan B, LIBOR + 2.75%, 2/09/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,295,125</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Iowa Telecom, Term
            Loan B, LIBOR + 2.00%, 11/30/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,017,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,995</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nextel Finance Co.,
            Term Loan E, LIBOR + 2.25%, 12/15/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,996,086</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nextel Partners Operating
            Corp., Term Loan C, LIBOR + 2.50%, 5/18/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,026,786</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">PanAmSat Corp.,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,364</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan, LIBOR + 2.50%, 8/20/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,372,464</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,985</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Term
            Loan B, LIBOR + 2.50%, 7/16/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,994,658</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Qwest Corp., Term
            Loan A, LIBOR + 4.75%, 6/30/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,209,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Triton PCS, Inc.,
            Term Loan, LIBOR + 3.75%, 11/15/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,550,625</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Valor Telecommunications
            LLC, Term Loan, LIBOR + 7.75%, 11/15/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,033,332</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">31,533,451</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Transportation&#151;0.8%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Sirva Worldwide, Inc.,
            Term Loan, LIBOR + 2.00%, 12/31/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,512,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,184</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Transport Industries,
            LP, Term Loan, LIBOR + 4.00%, 6/14/10</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,184,055</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,696,555</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Total Bank Loans</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">475,309,705</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Foreign Government
               Bonds&#151;33.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">8,714</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Bolivarian Republic
            of Venezuela, 3.625%, 12/18/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,670,310</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federative Republic
            of Brazil,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">14,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">3.125%,
            4/15/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">13,932,885</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">10,696</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.00%,
            4/15/14</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">10,942,726</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">14,435</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.299%,
            6/29/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">16,997,213</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            B, 10.00%, 8/07/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,781,600</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">1,600</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Islamic Republic of
            Pakistan, 6.75%, 2/19/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,640,544</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">800</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Malaysia, 8.75%, 6/01/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">947,992</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,500</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Argentina,
            1.98%, 8/03/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,975,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">8,610</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Bulgaria,
            2.75%, 1/28/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,602,636</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">A</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Chile,
            6.875%, 4/28/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,649,288</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">7,665</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Colombia,
            9.75%, 4/09/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,776,076</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">3,200</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Costa
            Rica, 9.335%, 5/15/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,516,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Ecuador,
            12.00%, 11/15/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,448,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">800</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of El Salvador,
            9.50%, 8/15/06</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">868,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Panama,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">12,714</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">2.75%,
            1/18/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">11,983,202</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">840</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.25%,
            4/22/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">930,300</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="5%" align=left></TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Peru,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,600</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">4.50%,
            3/07/05</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,236,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">9.125%,
            1/15/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,736,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of South
            Africa, 7.375%, 4/25/12</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,732,400</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of the Philippines,
            8.875%, 4/15/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,591,694</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">BB-</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT> </TD>
      <TD width="3%" align=left>&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Republic of Turkey,
            12.00%, 12/15/08</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,931,600</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=left>&nbsp;</TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left></TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
      <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
      <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD width="2%"><HR noshade size=1>
      </TD>
      <TD width="5%"><HR noshade size=1>
      </TD>
      <TD width="3%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>

      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">Foreign Government Bonds&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Republic of Venezuela,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD align=right><FONT size=1 face="serif">5,535</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">3.063%, 3/31/05</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,507,697</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">4,000</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">3.09%, 4/20/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,630,000</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">4,800</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 6/18/07</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,208,000</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">NR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">2,000</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">11.00%, 3/05/08 EUR</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,180,411</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Ukraine,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">8,100</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">5.33%, 8/05/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,483,616</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">2,800</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.875%, 3/04/11</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,856,000</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">4,800</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">United Mexican States, 2.753%,
            1/13/09</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,869,600</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Total Foreign Government Bonds</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">148,624,790</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=1 face="serif">Total Long-Term Investments
               (cost &#36;697,309,968)</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">705,719,727</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">SHORT-TERM INVESTMENT&#151;7.3%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=2 face="serif">U.S. Government and Agency
               Zero Coupon Bond</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left></TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=right><FONT size=1 face="serif">33,200</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Federal Home Loan Bank, zero coupon
            1/03/05 (cost &#36;33,197,694)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">33,197,694</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=1 face="serif">Total investments&#151;163.8%
               (cost &#36;730,507,662)</FONT></B>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">738,917,421</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Liabilities in excess of other
            assets &#151;(9.8)%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">(44,304,399</FONT> </TD>
      <TD align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=1 face="serif">Preferred shares at redemption
            value, including dividends payable&#151;(54.0)%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><U><FONT size=1 face="serif">(243,485,706</FONT></U> </TD>
      <TD align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
   </TR>
   <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><B><FONT size=1 face="serif">Net Assets applicable to common
               shareholders&#151;100%</FONT></B>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">451,127,316</FONT> </TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=2>
      </TD>
      <TD width="8%"><HR noshade size=2>
      </TD>
      <TD><HR noshade size=2>
      </TD>
   </TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>       </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2004, the Trust
held 6.0% of its net assets, with a current market value of &#36;27,169,471, in securities restricted as to resale.</FONT>      </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=1 face="serif">A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the SEC&#146;s Standard Industry Codes.</FONT></P>
<HR align="center" width="140" size=1 noshade>
<center>
   <br>
   <B><FONT size=1 face="serif">KEY TO ABBREVIATIONS</FONT></B>
</center>
<P align="center">
<FONT size=1 face="serif">EUR &#150; European Monetary Unit</FONT></P>
<HR align="center" width="140" size=1 noshade>
<P align="center">&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS DECEMBER 31, 2004</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
   <TR valign="bottom">
      <TD width=10% align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
      <TD width=2%>&nbsp;</TD>
      <TD width=5% align=left>&nbsp;</TD>
      <TD width=3%>&nbsp;</TD>
      <TD width=70% align=left>&nbsp;</TD>
      <TD width=1% align=left></TD>
      <TD width=8% align=left>&nbsp;</TD>
      <TD width=1% align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited) </FONT></B>&nbsp; </TD>
      <TD colspan=3 align=center><B><FONT size=2 face="serif">Shares</FONT></B></TD>
      <TD width="70%" align=center><B><FONT size=2 face="serif">Description</FONT></B>&nbsp; </TD>
      <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1></TD>
      <TD><HR noshade size=1></TD>
      <TD width="3%"><HR noshade size=1></TD>
      <TD width="70%"><HR noshade size=1>
      </TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;141.9%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Preferred Securities&#151;54.2%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Consumer Products&#151;0.5%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">20,000</FONT>&nbsp; </TD>
      <TD width="3%"><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Dairy Farmers of America,
            Inc., 7.875%</FONT>&nbsp; </TD>
      <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,082,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Energy&#151;3.9%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">45,200</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Apache Corp., Ser.
            B, 5.68%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,757,300</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">900</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Central Maine Power
            Co., 3.50%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">55,183</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Devon Energy Corp.,
            Ser. A, 6.49%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">510,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">115,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Hanover Compressor
            Cap. Trust, 7.25%, expires 12/14/29, price &#36;17.875, 2.7972 shares</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,904,905</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Baa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">275,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Nexen, Inc., 7.35%
            (Canada)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,397,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">18,624,888</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR>
      <TD width="10%"></TD>
      <TD width="2%"></TD>
      <TD width="5%"></TD>
      <TD width="3%"></TD>
      <TD width="70%"></TD>
      <TD><HR noshade size=1>
      </TD>
      <TD width="8%"><HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;34.0%</FONT></B>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">600</FONT>&nbsp; </TD>
      <TD width="3%"><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">ABN Amro NA, Inc.,
            6.46%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">600,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">400,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">BAC Capital Trust
            IV, 6.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">10,028,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">30,000</FONT>&nbsp; </TD>
      <TD width="3%"><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Banesto Hldgs. Ltd.,
            Ser. A, 10.50% (Bailiwick of Guernsey)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">990,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">100,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Bear Stearns Co.,
            Inc., Ser. E, 6.15%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,253,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">60,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Chevy Chase Preferred
            Cap. Corp., Ser. A, 10.375%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,465,600</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">23,600</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Citigroup Cap. I,
            6.75% (CORTS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">609,352</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">40,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Citigroup Cap. X,
            6.10%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,006,800</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">50,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Citigroup Cap. XI,
            6.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,246,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">80,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Colonial Cap. Trust
            IV, 7.875%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,136,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Credit Suisse First
            Boston, Inc. (SATURNS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">11,100</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.25%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">281,718</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">12,300</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">320,954</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">137,500</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Everest Re Cap. Trust,
            7.85% (Barbados)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,798,437</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">30,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Everest Re Cap. Trust
            II, Ser. B, 6.20%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">702,300</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan
            Mortgage Corp.</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">121,150</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            F, 5.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,209,450</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">102,958</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser.
            H, 5.10%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">4,488,969</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">15,200</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Financial Security
            Assurance Holdings Ltd., 5.60%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">365,408</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">277,200</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">First Republic Bank,
            6.70%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">7,354,476</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">120,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">First Republic Preferred
            Cap. Corp., 7.25%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,054,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">85,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Fleet Cap. Trust VII,
            7.20%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,250,800</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">26,100</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Fleet Cap. Trust VIII,
            7.20%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">695,304</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Goldman Sachs Group,
            Inc., The,</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">42,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">5.80%
            (CORTS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,047,900</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">20,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">5.625%
            (SATURNS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">465,600</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">102,900</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.00%
            (SATURNS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,553,206</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=left>&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=left>&nbsp;</TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">ING Groep NV (Netherlands)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">76,700</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.05%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,056,519</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">560,337</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.20%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">15,224,356</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">80,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">JP Morgan Chase Cap.
            XII, 6.25%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,056,000</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">150,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">JP Morgan Chase Cap.
            XIV, 6.20%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,832,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">117,200</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">KeyCorp Cap. V, 5.875%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,893,375</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">263,400</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lehman Brothers Holdings
            Cap. Trust III, Ser. K, 6.375%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">6,729,870</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">90,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lehman Brothers Holdings
            Cap. Trust IV, Ser. L, 6.375%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,317,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">146,500</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lehman Brothers Holdings
            Cap. Trust V, Ser. M, 6.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">3,647,850</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">31,100</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Lehman Brothers Holdings,
            Inc., Ser. D, 5.67%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">1,586,100</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">20,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Merrill Lynch Preferred
            Cap. Trust III, 7.00%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">537,500</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">86,900</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Merrill Lynch Preferred
            Cap. Trust V, 7.28%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,356,728</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">337,000</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Morgan Stanley Cap.
            Trust III, 6.25%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">8,569,910</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">7,200</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">News Corp. Ltd., The,
            Ser. 9, Class 1, 8.125% (CORTS)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">189,432</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">A</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">209,400</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Partnerre Ltd., Ser.
            C, 6.75% (Bermuda)</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">5,418,225</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">79,385</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">Phoenix Cos, Inc.,
            The, 7.45%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">2,024,317</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
   <TR valign="bottom">
      <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="5%" align=right><FONT size=1 face="serif">18,400</FONT>&nbsp; </TD>
      <TD width="3%">&nbsp;</TD>
      <TD width="70%" align=left><FONT size=1 face="serif">PLC Cap. Trust IV,
            7.25%</FONT>&nbsp; </TD>
      <TD align=left></TD>
      <TD width="8%" align=right><FONT size=1 face="serif">489,440</FONT>&nbsp; </TD>
      <TD align=right>&nbsp;</TD>
   </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">15</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=10% align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
    <TD width=2% align="center">&nbsp;</TD>
    <TD width=5% align=center></TD>
    <TD width=3% align=left>&nbsp;</TD>
    <TD width=70% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=8% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited) </FONT></B></TD>
    <TD colspan=3 align=center><B><FONT size=2 face="serif">Shares</FONT></B></TD>
    <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="2%"><HR noshade size=1></TD>
    <TD width="5%"><HR noshade size=1></TD>
    <TD width="3%"><HR noshade size=1>
    </TD>
    <TD width="70%"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;(cont&#146;d)</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Renaissancere Holdings
        Ltd. (Bermuda)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">271,725</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. B,
        7.30%</FONT>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=1 face="serif">7,293,099</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">240,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. C,
        6.08%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,728,800</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">30</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Roslyn Real Estate Asset
        Corp., Ser. C, 8.95%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,030,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Safeco Cap. Trust I,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,100</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.072%
        (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">112,586</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.375%
        (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">56,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">14,700</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.70% (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">400,722</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">35,700</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.75% (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,060,260</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">23,600</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">8.25% (SATURNS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">632,371</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">SLM Corp., Ser. A, 6.97%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">288,438</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">50,600</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sprint Corp., Ser. 17,
        Class A1, 7.00% (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,290,806</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">103,439</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Structured Repackaged
        Asset-Backed Trust Securities, 6.50%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,570,459</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Union Planters Preferred
        Funding Corp., 7.75%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">6,420,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">11,100</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Valero Energy Corp.
        (PPLUS), 7.25%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">290,265</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">271,200</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Wachovia Preferred Funding
        Corp., Ser. A, 7.25%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">7,729,200</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa1</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,200</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Washington Mutual Cap.
        I, 7.65% (CORTS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">135,850</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">13,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">XL Cap. Ltd., Ser. A,
        8.00% (Cayman Islands)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">368,298</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa1</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">143,865</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Zions Cap. Trust, 8.00%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,951,799</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Zurich Regcaps Funding
        Trust, 6.58%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,079,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">161,291,349</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Media&#151;2.5%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">253,100</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AOL Time Warner, Inc.,
        Ser. A-1, 7.625% (CABCO)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">6,745,115</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">110,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Comcast Corp., expires
        11/15/29, price &#36;85.929, 0.95 shares</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,138,650</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">11,883,765</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Real Estate&#151;13.3%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AMB Property Corp.,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">80,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. L,
        6.50%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,045,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">170,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. M,
        6.75%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">4,369,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">BRE Properties,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">225,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. C,
        6.75%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,625,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">80,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. D,
        6.75%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,012,504</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">78,888</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">CarrAmerica Realty Corp.
        Ser. E, 7.50%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,087,377</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Developers Diversified
        Realty Corp.</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">120,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.375%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,108,756</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">15,900</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">7.50%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">411,810</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Duke Realty Corp.,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">90,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. J,
        6.625%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,358,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">160,800</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">Ser. K,
        6.50%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">4,055,183</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">100,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Equity Residential,
        Ser. N, 6.48%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,530,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">255,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Kimco Realty Corp.,
        Ser. F, 6.65%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">6,598,125</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">255,200</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">NB Cap. Corp., 8.35%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">7,074,144</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">324,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Regency Centers Corp.,
        7.45%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">8,656,891</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">30</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sun Trust Real Estate
        Investment Corp., 9.00%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,861,855</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">320,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Weingarten Realty Investors,
        Ser. D, 6.75%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">8,243,200</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">63,036,845</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Total Preferred Securities</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">256,919,347</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%">&nbsp;    </TD>
    <TD width="3%">&nbsp;    </TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=3><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD colspan="3" align="center"><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD colspan="3" align="center"><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD colspan="3" align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD colspan="3">    <HR noshade size=1>    </TD>
    <TD width="70%"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Trust Preferred Securities&#151;51.1%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Energy&#151;2.5%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%"><FONT size=1 face="serif">&#36;</FONT></TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HL&amp;P Cap. Trust
        II, Ser. B, 8.257%, 2/01/37</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,145,680</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,655</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">K N Cap. Trust III,
        7.63%, 4/15/28</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,206,152</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Ba1</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Puget Sound Energy Cap.
        Trust I, Ser. B, 8.231%, 6/01/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,161,370</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">11,513,202</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">16</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=10% align=left>&nbsp;</TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
    <TD width=70% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=8% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
    <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"><hr noshade size=1></TD>
    <TD width="2%"><HR noshade size=1>
    </TD>
    <TD width="5%"><HR noshade size=1>
    </TD>
    <TD width="3%"><HR noshade size=1>
    </TD>
    <TD width="70%"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;44.8%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left><FONT size=1 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="5%" align=right><FONT size=1 face="serif">6,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Abbey National Cap.
        Trust I, 8.963%, 12/29/49</FONT>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right><FONT size=1 face="serif">8,277,180</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Ba2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">6,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AFC Cap. Trust I, Ser.
        B, 8.207%, 2/03/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">6,751,374</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AgFirst Farm Credit
        Bank, 7.30%, 10/14/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">6,220,860</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">American General Institute
        Cap. B, 8.125%, 3/15/46</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">2,611,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Astoria Cap. Trust 1,
        Ser. B, 9.75%, 11/01/29</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">6,042,700</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">9,774</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AXA SA, 7.10%, 5/29/49
        (France)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">10,219,412</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,600</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Bank One Cap. III, 8.75%,
        9/01/30</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">6,177,340</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,557</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">BNP Paribas Cap. Trust
        V, 7.20%, 12/31/49</FONT>&nbsp; </TD>

    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,765,440</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">CBA Cap. Trust I, 5.805%,
        12/31/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">8,294,320</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,100</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Colonial Cap. Trust
        II, Ser. A, 8.92%, 1/15/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,218,657</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Credit Agricole Preferred
        Fund Trust II, 7.00%, 8/29/49 (Luxembourg)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,120,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Danske Bank A/S, 5.914%,
        12/29/49 (Denmark)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">10,603,900</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Deutsche Bank Cap. Funding,
        7.872%, 12/29/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,103,270</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Dresdner Funding Trust
        I, 8.151%, 6/30/31</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">7,376,640</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,100</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">FCB/NC Cap. Trust I,
        8.05%, 3/01/28</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,173,381</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Greenpoint Cap. Trust
        I, 9.10%, 6/01/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,897,750</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HBOS Cap. Funding LP,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.071%,
        6/30/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">10,707,400</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">6.85%,
        3/29/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,212,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">10,835</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HSBC Cap. Funding LP,
        9.55%, 6/30/49 (Bailiwick of Jersey)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">13,313,940</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,400</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HUBCO Cap. Trust I,
        Ser. B, 8.98%, 2/01/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,591,898</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HUBCO Cap. Trust II,
        Ser. B, 7.65%, 6/15/28</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,142,215</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">JPM Cap. Trust II, 7.95%,
        2/01/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,091,129</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Mangrove Bay Pass-Through
        Trust, 6.102%, 7/15/33</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">9,922,600</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,145</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Markel Cap. Trust I,
        Ser. B, 8.71%, 1/01/46</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,400,626</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Morgan Stanley, 7.05%,
        4/01/32 (PPLUS)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">34,491</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">North Fork Cap. Trust
        II, 8.00%, 12/15/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,343,620</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Old Mutual Cap. Funding,
        8.00%, 5/29/49 (Jersey)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,287,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,200</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Provident Financing
        Trust I, 7.405%, 3/15/38</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,701,250</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">11,200</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Rabobank Capital Funding
        Trust, 5.254%, 12/29/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">11,139,128</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">RBS Cap. Trust, 6.80%,
        12/31/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">8,269,383</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">10,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Royal Bank of Scotland
        Group PLC, 7.648%, 8/31/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">11,908,700</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,600</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">State Street Institutional
        Capital A, Ser. A, 7.94%, 12/30/26</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,205,176</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">7,500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sun Life of Canada US
        Cap. Trust I, 8.526%, 5/29/49 (Canada)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">8,435,025</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">7,270</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Transamerica Cap. III,
        7.625%, 11/15/37</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">8,221,352</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Webster Cap. Trust I,
        9.36%, 1/29/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,542,700</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">212,323,857</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Real Estate&#151;2.6%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sovereign Real Estate
        Investor Corp., 12.00%, 8/29/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">12,344,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Telecommunications&#151;1.2%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">TCI Communications Financing
        III, 9.65%, 3/31/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,785,900</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Total Trust Preferred
        Securities</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">241,966,959</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=8>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Corporate Bonds&#151;35.9%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Automotive&#151;1.3%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Dura Operating Corp.,
        Ser. B, 8.625%, 4/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,127,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,850</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Rexnord Corp., 10.125%,
        12/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,224,062</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">6,351,562</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Basic Materials&#151;1.1%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Caraustar Industries,
        Inc., 9.875%, 4/01/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,631,250</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Lyondell Chemical Co.,
        11.125%, 7/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,555,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">5,186,250</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Conglomerates&#151;0.7%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Trimas Corp., 9.875%,
        6/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,180,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Consumer Products&#151;1.9%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Delhaize America, Inc.,
        9.00%, 4/15/31</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">4,551,645</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Lazy Days RV Center,
        Inc., 11.75%, 5/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">1,087,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Stoneridge, Inc., 11.50%,
        5/01/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,498,750</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">9,137,895</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">17</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=10% align=left>&nbsp;</TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
    <TD width=70% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=8% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp; </TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp; </TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
    <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="2%" align="center"><HR noshade size=1>
    </TD>
    <TD width="5%" align="center"><HR noshade size=1>
    </TD>
    <TD width="3%" align="center"><HR noshade size=1>
    </TD>
    <TD width="70%"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Containers &amp; Packaging&#151;0.7%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
    <TD width="2%" align=left><FONT size=1 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Crown European Holdings
        SA, 9.50%, 3/01/11 (France)</FONT>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=1 face="serif">3,420,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;0.4%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,695</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Allied Waste NA, Inc.,
        Ser. B, 10.00%, 8/01/09</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,781,869</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Energy&#151;3.2%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">AES Corp., 8.875%, 2/15/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,427,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Dresser, Inc., 9.375%,
        4/15/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,285,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,250</FONT><SUP></SUP> </TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Dynegy Holdings, Inc.,
        10.125%, 7/15/13</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,567,812</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,950</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Orion Power Holdings,
        Inc., 12.00%, 5/01/10</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,746,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Williams Cos, Inc.,
        8.125%, 3/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,315,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">15,341,812</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;0.2%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Ba3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">763</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Host Marriot Corp.,
        Ser. B, 7.875%, 8/01/08</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">786,844</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Financial Institutions&#151;21.7%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">9,500</FONT></TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2,3</FONT></SUP> </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">American General Institute
        Cap. A, 7.57%, 12/01/45</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">11,780,665</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Aa3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">12,000</FONT></TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Barclays Bank PLC, 6.86%,
        9/29/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">13,495,152</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Crum &amp; Forster Holdings
        Corp., 10.375%, 6/15/13</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,115,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,375</FONT><SUP></SUP> </TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP></TD>
    <TD width="70%" align=left><FONT size=1 face="serif">E*Trade Financial Corp.,
        8.00%, 6/15/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,619,688</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Fairfax Financial Holdings,
        Ltd., 7.75%, 4/26/12 (Canada)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">8,080,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">11,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">First Midwest Cap. Trust
        I, Ser. B, 6.95%, 12/01/33</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">12,525,701</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">HSBC Bank USA, Inc.,
        5.875%, 11/01/34</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">8,083,600</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BBB-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Kingsway America, Inc.,
        7.50%, 2/01/14</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,164,700</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AA</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">7,399</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Lloyds Bank Ltd., 6.90%,
        11/22/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">7,760,368</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">692</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Midland Funding Corp.
        II, Ser. A, 11.75%, 7/23/05</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">726,329</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">8,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Prudential, 6.50%, 6/29/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">8,020,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,400</FONT></TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Refco Finance Holdings
        LLC, 9.00%, 8/01/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,616,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Resparcs Funding LP,
        8.00%, 12/30/49 (United Kingdom)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">4,216,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Santander Financial
        Issuances, 7.25%, 11/01/15 (Cayman Islands)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">5,911,650</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Ba1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sovereign Capital Trust
        1, 9.00%, 4/01/27</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,267,300</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">AAA</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">4,479</FONT></TD>
    <TD width="3%" align=left><FONT size=1 face="serif">&nbsp;</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Structured Asset Receivable
        Trust, 1.64%, 1/21/10</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">4,479,178</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">A2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT></TD>
    <TD width="3%" align=left><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Westpac Cap. Trust IV,
        5.256%, 12/29/49</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,934,060</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">102,795,391</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Health Care&#151;0.3%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B3</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,415</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Insight Health Services
        Corp., Ser. B, 9.875%, 11/01/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,429,150</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Industrials&#151;0.1%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B-</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">300</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">ERICO Intl. Corp., 8.875%,
        3/01/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">315,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Media&#151;1.3%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,950</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Dex Media East, LLC,
        12.125%, 11/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,379,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B1</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">696</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">PEI Holdings Inc., 11.00%,
        3/15/10</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">805,620</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">CCC</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">WRC Media, Inc., 12.75%,
        11/15/09</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,853,750</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">6,038,370</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Publishing&#151;0.7%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Cenveo Corp., 9.625%,
        3/15/12</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,315,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Real Estate&#151;1.4%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Rouse Co.,</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">5,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">3.625%,
        3/15/09</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">4,712,750</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB+</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp; &nbsp;<FONT size=1 face="serif">5.375%,
        11/26/13</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">1,918,400</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">6,631,150</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Telecommunications&#151;0.5%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">BB</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Qwest Corp., 7.875%,
        9/01/11</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,170,000</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Transportation&#151;0.4%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">B</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">1,910</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Sea Containers Ltd.,
        10.50%, 5/15/12 (Bermuda)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">2,015,050</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">169,895,343</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">Foreign Government
          Bonds&#151;0.7%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=center><FONT size=1 face="serif">Baa2</FONT>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=right><FONT size=1 face="serif">3,000</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">United Mexican States,
        8.00%, 9/24/22</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">3,439,500</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left>&nbsp;</TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="5%" align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=1 face="serif">Total Long-Term Investments
          (cost &#36;640,664,930)</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=1 face="serif">672,221,149</FONT>&nbsp; </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=10% align=left></TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Principal</FONT></B> </TD>
    <TD width=70% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=8% align=left></TD>
    <TD width=1% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">Amount</FONT></B> </TD>
    <TD width="70%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="8%" align=left></TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD colspan="3" align=center><B><FONT size=2 face="serif">(000</FONT></B> <B><FONT size=2 face="serif">)</FONT></B>&nbsp; </TD>
    <TD width="70%" 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; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Value</FONT></B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="2%"><HR noshade size=1></TD>
    <TD width="3%"><HR noshade size=1>
    </TD>
    <TD width="5%"><HR noshade size=1>
    </TD>
    <TD width="70%"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">SHORT-TERM INVESTMENT&#151;4.0%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left></TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">U.S. Government and
          Agency Zero Coupon Bond</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left></TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=right>&nbsp;</TD>
    <TD width="2%" align=right><div align="left"><FONT size=1 face="serif">&#36;</FONT></div></TD>
    <TD width="3%" align=right><FONT size=1 face="serif">18,800</FONT> </TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Federal Home Loan Bank,
        zero coupon, 1/03/05 (cost &#36;18,798,694)</FONT>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right><FONT size=1 face="serif">18,798,694</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=1 face="serif">Total Investments
          before borrowed bonds and investments sold short (cost &#36;659,463,624)</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">691,019,843</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">BORROWED BONDS&#151;2.9%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left></TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="3%" align=right><FONT size=1 face="serif">12,500</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP> </TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">U.S. Treasury Bonds,
        1.80%, 1/03/05 (cost &#36;13,796,875)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">13,796,875</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=2 face="serif">INVESTMENT SOLD SHORT&#151;(2.9)%</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=left></TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="3%" align=right><FONT size=1 face="serif">(12,500</FONT> </TD>
    <TD width="5%" align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
    <TD width="70%" align=left><FONT size=1 face="serif">U.S. Treasury Bonds,
        5.375%, 2/15/31 (proceeds &#36;13,066,406)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">(13,503,875</FONT> </TD>
    <TD width="1%" align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=1 face="serif">Total investments,
          net of borrowed bonds and investments sold short&#151;145.9%</FONT></B>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right><FONT size=1 face="serif">691,312,843</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Assets in excess of
        liabilities&#151;0.7%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">3,327,980</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><FONT size=1 face="serif">Preferred shares at
        redemption value, including dividends payable&#151;(46.6%)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="8%" align=right><FONT size=1 face="serif">(220,831,854</FONT> </TD>
    <TD width="1%" align=left><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD><p>&nbsp;</p></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="10%" align=left></TD>
    <TD width="2%" align=left></TD>
    <TD width="3%" align=left></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="70%" align=left><B><FONT size=1 face="serif">Net Assets applicable
          to common shareholders&#151;100%</FONT></B>&nbsp; </TD>
    <TD align=right><FONT size=1 face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right><FONT size=1 face="serif">473,808,969</FONT> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%"><p>&nbsp;</p>
    </TD>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="70%"></TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD width="1%"><HR noshade size=2>
    </TD>
  </TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>       </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2004, the Trust
held 37.3% of its net assets, with a current market value of &#36;176,516,369, in securities restricted as to resale.</FONT>    </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT>      </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Entire principal amount pledged as collateral for Investments Sold Short. See Note 1 in the Notes to Financial Statements.</FONT>     </TD>
</TR>
<TR valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P>
<FONT size=1 face="serif">A category in the Preferred Securities, Trust Preferred Securities and Corporate Bonds sections may contain multiple industries as defined by the SEC&#146;s Standard Industry Codes.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
</TR>
<TR valign="top">
        <TD colspan="7" align=left>
      <center>
        <B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>&nbsp;
    </center></TD>
  </TR>
<TR valign="top">
        <TD width="7%" align=right>
<FONT size=2 face="serif">CABCO</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width="36%" align=left>
<FONT size=2 face="serif">Corporate Asset Backed Corporation</FONT>&nbsp;
        </TD>
        <TD width="7%">&nbsp;
        </TD>
        <TD width=7% align=left>    <font size=2 face="serif">PPLUS</font>&nbsp;</TD>
        <TD width=2% align=left>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width="39%" align=left>
<FONT size=2 face="serif">Preferred Plus</FONT>&nbsp;
        </TD>
</TR>
<TR valign="top">
        <TD align=right>
<FONT size=2 face="serif">CORTS</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Corporate Backed Trust Securities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">SATURNS</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Structured Asset Trust Unit Repackagings</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=right><HR noshade size=1></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">19</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES <br>
December 31, 2004<br><hr noshade size=1></FONT></B><p></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=55% align=left>&nbsp;</TD>
    <TD width=1% align=right>&nbsp;</TD>
    <TD width=10% align=center></TD>
    <TD width=4% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Global</FONT></B> </TD>
    <TD width=3% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Preferred</FONT></B> </TD>
    <TD width=3% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Advantage Term</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Floating Rate</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Opportunity</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Trust</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Income Trust</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Trust</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BAT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BGT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BPP)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="right"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Assets</FONT></B>&nbsp; </TD>
    <TD width="1%" align=right>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">140,120,792</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">738,917,422</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">691,019,843</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Cash</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">1,993,271</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">2,695,625</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Foreign currency at
        value</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">13,882</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Receivable from investments
        sold</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">10,000,000</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">452,366</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Deposits with brokers
        as collateral for borrowed bonds</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">13,796,875</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Receivable for open
        forward foreign currency contracts</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">3,367,954</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Income receivable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">191,956</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">5,602,993</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">5,950,133</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Unrealized appreciation
        on interest rate swaps</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">323,859</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Other assets</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">28,087</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">39,952</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">53,984</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">150,340,835</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">750,387,840</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">713,840,319</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Liabilities</FONT></B>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Reverse repurchase agreements</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">39,944,875</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Payable to custodian</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">9,747,717</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Payable for investments
        purchased</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">49,375,846</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Variation margin payable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">756,625</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Investments sold short
        at value</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">13,503,875</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Interest payable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">67,059</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">1,336,279</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Payable for open forward
        foreign currency contacts</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">3,425,437</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Dividends payable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">554,786</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">2,190,779</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">3,050,969</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Investment advisory
        fee payable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">43,195</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">324,874</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">383,577</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Administration fee payable</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">14,388</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Deferred Directors&#146; or
        Trustees&#146; fees</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">23,980</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">2,095</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">34,370</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Payable to affiliates</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">8,061</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">8,593</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">204,047</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">447,194</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">133,801</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">50,608,108</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">55,774,818</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">19,199,496</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Preferred Shares
          at Redemption Value</FONT></B>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">&#36;0.001 par value
        per share and &#36;25,000 liquidation value per share,</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">including
        dividends payable</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">243,485,706</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">220,831,854</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Net Assets Applicable
          to Common Shareholders</FONT></B>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">99,732,727</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">451,127,316</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">473,808,969</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=2>
    </TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD width="12%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Composition of Net Assets
        Applicable to Common Shareholders:</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">95,107</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">23,481</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">18,306</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Paid-in
        capital in excess of par</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">88,784,068</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">444,690,260</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">433,520,477</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=center><div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Undistributed (distributions
        in excess of) net investment income</FONT>&nbsp; </div></TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">10,040,004</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">(1,900,197</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(34,370</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Accumulated
        net realized gain (loss)</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(2,140,174</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">(44,284</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">10,696,263</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized
        appreciation</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">2,953,722</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">8,358,056</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">29,608,293</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net assets applicable
        to common shareholders, December 31, 2004</FONT>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">99,732,727</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">451,127,316</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">473,808,969</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=2>
    </TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD width="12%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net asset value per
        common share</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">10.49</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">19.21</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">25.88</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="1%" align="left"><HR noshade size=2></TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD width="12%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=2></TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Consolidated
        Statement of Assets and Liabilities</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Investments
        at cost</FONT>&nbsp; </TD>
    <TD width="1%" align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">137,167,070</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="12%" align=right><FONT size=2 face="serif">730,507,662</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">659,463,624</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Foreign
        currency at cost</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">13,539</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">Proceeds
        received</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">13,066,406</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">5 </FONT></SUP><FONT size=2 face="serif">Preferred
        shares outstanding</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">9,738</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">8,832</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><SUP><FONT size=2 face="serif">6 </FONT></SUP><FONT size=2 face="serif">Common
        shares outstanding</FONT>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">9,510,667</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="12%" align=right><FONT size=2 face="serif">23,481,021</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="10%" align=right><FONT size=2 face="serif">18,305,777</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<B><FONT face="serif">STATEMENTS OF OPERATIONS <br>
For the period</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended December 31, 2004<br></FONT></B><B><FONT face="serif"><hr noshade size=1></FONT></B><p></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR align="center" valign="bottom">
    <TD width=55%>&nbsp;</TD>
    <TD width=1%></TD>
    <TD width=10%></TD>
    <TD width=4%>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Global</FONT></B> </TD>
    <TD width=4%>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Preferred</FONT></B> </TD>
    <TD width=4%>&nbsp;</TD>
  </TR>
  <TR align="center" valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Advantage Term</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Floating Rate</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Opportunity</FONT></B> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR align="center" valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Trust</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Income Trust</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">Trust</FONT></B> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR align="center" valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">(BAT)</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">(BGT)</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><B><FONT size=2 face="serif">(BPP)</FONT></B> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD width="1%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Investment Income</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Interest
        income</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">7,765,147</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">9,115,388</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">30,348,979</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Dividend
        income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,215</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">16,946,942</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total
        investment income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">7,766,362</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">9,115,388</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">47,295,921</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Expenses</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Investment
        advisory</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">529,933</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,493,235</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">4,482,902</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Administration</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">84,789</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Transfer
        agent</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">15,573</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">7,624</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">15,006</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">72,339</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">83,563</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">117,624</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Reports
        to shareholders</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">30,490</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">38,962</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">89,026</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">17,118</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">19,989</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">56,364</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">29,568</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">10,673</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">28,285</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Independent
        accountants</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">42,686</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">51,238</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">44,512</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">33,294</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">18,872</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">61,375</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">9,590</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">20,590</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">63,203</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Organization</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">15,000</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Auction
        agent</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">120,936</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">579,128</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">20,934</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">22,684</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">56,142</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total
        expenses excluding interest expense and excise tax</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">886,314</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,903,366</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">5,593,567</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest
        expense</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">427,235</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,548</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,156,065</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Excise
        tax</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">50,000</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total
        expenses</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,363,549</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,905,914</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">6,749,632</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less:
        fees waived by Advisor</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(398,196</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less:
        fees paid indirectly</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(603</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(37,322</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,501</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net
        expenses</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,362,946</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,470,396</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">6,743,131</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net investment income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">6,403,416</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">7,644,992</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">40,552,790</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Realized and Unrealized
          Gain (Loss)</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net realized gain (loss)
        on:</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,573,472</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">97,506</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">21,147,890</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Foreign
        currency</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">7,055</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">9,141</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(132,867</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest
        rate swaps</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(7,461,538</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Short
        sales</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,060,504</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,582,613</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">104,561</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">12,492,981</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net change in unrealized
        appreciation/depreciation on:</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,219,268</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8,409,759</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,479,228</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Foreign
        currency</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(51,703</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,649,386</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest
        rate swaps</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,330,855</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Short
        sales</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(437,469</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,219,268</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8,358,056</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,235,228</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net gain (loss)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,636,655</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8,462,617</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">6,257,753</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Dividends and Distributions
          to Preferred Shareholders from:</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment
        income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(945,917</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(2,900,841</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(402,710</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Total dividends and
        distributions</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(945,917</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,303,551</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Net Increase in Net
          Assets Applicable to Common Shareholders</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Resulting
          from Operations</FONT></B>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">766,761</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">15,161,692</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">43,506,992</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade>
    <div align="left"></div></TD>
  </TR>
<TR valign="top">
        <TD width="3%" nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width="97%">
<FONT size=1 face="serif">Commencement of investment operations for Global Floating Rate Income was August 30, 2004. This information includes the initial investment by BlackRock Funding, Inc. The other Trusts&#146; statements are for a full
year.</FONT>    </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Consolidated Statement of Operations.</FONT>  </TD>
</TR>
<TR valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">STATEMENTS OF CASH FLOWS <br>
For the period</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended December 31, 2004<br></FONT></B><B><FONT face="serif"><hr noshade size=1></FONT></B><p></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=55% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=10% align=center></TD>
    <TD width=4% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Global</FONT></B> </TD>
    <TD width=4% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Preferred</FONT></B> </TD>
    <TD width=4% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Reconciliation of
          Net Increase</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Advantage</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Floating Rate</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Opportunity</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">in Net Assets Resulting
          from Operations</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Term Trust</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Income Trust</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Trust</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">to Net Cash Provided
          by (Used for) Operating Activities</FONT></B>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BAT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BGT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BPP)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD align="center"><HR noshade size=1>
    </TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%" align="center"><HR noshade size=1>
    </TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%" align="center"><HR noshade size=1>
    </TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net increase in net
        assets resulting from operations</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">766,761</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">15,161,692</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">43,506,992</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Purchases of long-term
        investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(24,940,597</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(750,013,307</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(479,878,051</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Proceeds from sales
        of long-term investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">31,230,764</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">52,361,916</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">511,407,204</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net purchases of short-term
        investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,899,164</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(32,676,373</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(17,358,395</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Amortization of premium
        and discount on investments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,761,799</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(75,338</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">546,440</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net realized gain</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(2,573,472</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(104,561</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(20,966,596</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Decrease (Increase)
        in unrealized appreciation/depreciation</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8,219,268</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,358,056</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">5,479,229</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net effect of exchange
        rates on foreign currencies</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(51,703</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Decrease in receivable
        for investments sold short</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">13,503,875</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in unrealized
        appreciation of interest rate swaps</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,330,855</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in deposits
        with brokers as collateral for borrowed bonds</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(13,796,875</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Decrease (Increase)
        in receivable for investments sold</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(10,000,000</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(452,366</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">6,084,833</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in receivable
        for open forward foreign currency contracts</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,367,954</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Decrease (Increase)
        in interest receivable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">266</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,602,993</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">881,298</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in other assets</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,374</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(39,952</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,923</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase (Decrease)
        in payable for investments purchased</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">49,375,846</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,986,814</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in payable
        for open forward foreign currency contacts</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">3,425,437</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in variation
        margin payable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">694,125</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in interest
        payable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">47,702</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">358,675</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase (Decrease)
        in investment advisory fee payable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,031</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">324,874</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,507</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Decrease in administration
        fee payable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(485</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase in deferred
        Directors/Trustees fees</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">3,393</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,095</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">21,350</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase (Decrease)
        in payable to affiliates</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,864</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8,593</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase (Decrease)
        in other accrued expenses</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(280,453</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">447,194</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(21,692</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Total adjustments</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(10,964,846</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(694,796,648</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,367,665</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net cash provided by
        (used for) operating activities</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(10,198,085</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(679,634,956</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">42,139,327</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%" align="left"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><B><FONT size=2 face="serif">Increase (Decrease)
          in Cash</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net cash provided by
        (used for) operating activities</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(10,198,085</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(679,634,956</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">42,139,327</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%" align="left"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Cash provided by (used
        for) financing activities:</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Capital
        contributions</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">444,728,741</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Increase
        (Decrease) in reverse repurchase agreements</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">9,867,050</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(3,486,000</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Increase (Decrease)
        in preferred shares at redemption value including</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">dividends
        payable</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">243,485,706</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,920</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Cash dividends
        paid to common shareholders</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(9,472,587</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,572,338</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(37,940,626</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%" align="left"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left><FONT size=2 face="serif">Net cash provided by
        (used for) financing activities</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">394,463</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">681,642,109</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(41,435,546</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="55%" align="left"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net increase
        (decrease) in cash</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(9,803,622</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,007,153</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">703,781</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Cash at
        beginning of period</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">55,905</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1,991,844</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%" align="left"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="55%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Cash and
        foreign currency (overdraft) at end of period</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(9,747,717</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">2,007,153</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">2,695,625</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="55%"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Commencement of investment operations for Global Floating Rate Income was August 30, 2004. This information includes the initial investment by BlackRock Funding, Inc. The other Trusts&#146; statements are for a full
year.</FONT></TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Consolidated Statement of Cash Flows.</FONT>  </TD>
</TR>
<TR valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">22</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS <br>
For the periods</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended December 31, 2004 and 2003<br></FONT></B><B><FONT face="serif"><hr noshade size=1></FONT></B><p></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=46% align=left>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">Advantage</FONT></B> </TD>
    <TD width=2% align=center>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><B><FONT size=2 face="serif">Global Floating Rate</FONT></B> </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=1% align=center></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">Preferred</FONT></B> </TD>
    <TD width=2% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">Term Trust</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">Income Trust</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">Opportunity Trust</FONT></B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">(BAT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">(BGT)</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center></TD>
    <TD colspan=4 align=center><B><FONT size=2 face="serif">(BPP)</FONT></B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD colspan=4 align="center"><HR noshade size=1>
    </TD>
    <TD align="center">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="10%" align="center"><HR noshade size=1>
    </TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><HR noshade size=1>
    </TD>
    <TD colspan=4 align="center"><HR noshade size=1>
    </TD>
    <TD width="2%" align="center">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width=8% align=center><B><FONT size=2 face="serif">2004</FONT></B> </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=1% align=left></TD>
    <TD width=8% align=center><B><FONT size=2 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=center><B><FONT size=2 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center></TD>
    <TD width=8% align=center><B><FONT size=2 face="serif">2004</FONT></B> </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=1% align=center></TD>
    <TD width=8% align=center><B><FONT size=2 face="serif">2003</FONT></B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><B><FONT size=2 face="serif">Increase (Decrease)
          in Net Assets</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Applicable
          to Common Shareholders</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=16>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><B><FONT size=2 face="serif">Operations:</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment
        income</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">6,403,416</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">7,887,060</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">7,644,992</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">40,552,790</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">31,539,785</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2,582,613</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,849,233</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">104,561</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">12,492,981</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(374,554</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,219,268</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,198,427</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">8,358,056</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,235,228</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">35,843,521</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net
        investment income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(945,917</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(2,900,841</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,805,661</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(402,710</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(4,742</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">Net increase in net
        assets applicable to common</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">shareholders
        resulting from operations</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">766,761</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">839,400</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">15,161,692</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">43,506,992</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">65,198,349</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=16>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><B><FONT size=2 face="serif">Dividends and Distributions
          to</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment
        income</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(554,749</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,657,165</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(8,763,117</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(36,611,627</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(30,435,478</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(1,328,999</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(74,051</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Tax return
        of capital distributions</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,917,875</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">Total dividends and
        distributions</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(9,472,624</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(6,657,165</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(8,763,117</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><SUP><FONT size=2 face="serif">(37,940,626</FONT></SUP> </TD>
    <TD align=left><SUP><FONT size=2 face="serif">)</FONT></SUP>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(30,509,529</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=16>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds
        from the issuance of common</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shares</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">438,510,001</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">388,477,506</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">9,053,500</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">47,650,000</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Offering
        costs relating to the issuance</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">of
        preferred shares</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(2,834,760</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(2,597,000</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">23,277</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">Net proceeds from capital
        share transactions</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">444,728,741</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">433,553,783</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(8,705,863</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(5,817,765</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">451,127,316</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">5,566,366</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">468,242,603</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=16>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><B><FONT size=2 face="serif">Net Assets Applicable
          to Common</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Shareholders</FONT></B>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">Beginning of period</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">108,438,590</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">114,256,355</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">468,242,603</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="2%"><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">End of period</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">99,732,727</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">108,438,590</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">451,127,316</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">473,808,969</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">468,242,603</FONT> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="46%"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD width="10%"><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="2%">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left><FONT size=2 face="serif">End of period undistributed
        (distributions in</FONT></TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="10%" align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="46%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">excess
        of) net investment income</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">10,040,004</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">16,107,109</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="10%" align=right><FONT size=2 face="serif">(1,900,197</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(34,370</FONT> </TD>
    <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">(683,854</FONT> </TD>
    <TD width="2%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
</TABLE>

<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD width="37" nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width="1040">
<FONT size=1 face="serif">Commencement of investment operations for Global Floating Rate Income and Preferred Opportunity was August 30, 2004, and February 28, 2003, respectively. This information includes the initial investment by BlackRock
Funding, Inc. The other Trusts&#146; statements are for a full year.</FONT>     </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Consolidated Statement of Changes in Net Assets.</FONT>       </TD>
</TR>
<TR valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements</FONT></P>
<P align="center">
<FONT size=2 face="serif">23</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">CONSOLIDATED FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Advantage Term Trust (BAT)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD colspan="14" align=center><B><FONT size=2 face="serif">Year Ended December
          31,</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD colspan="14" align=center><HR noshade size=1></TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">2004</FONT></B> </TD>
    <TD width="3%" align=center>&nbsp;</TD>
    <TD width="1%" align=center></TD>
    <TD width=8% align=center><B><FONT size=2 face="serif">2003</FONT></B> </TD>
    <TD width=3% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">2002</FONT></B> </TD>
    <TD width=3% align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">2001</FONT></B> </TD>
    <TD width="3%" align=center>&nbsp;</TD>
    <TD colspan="2" align=center><B><FONT size=2 face="serif">2000</FONT></B> </TD>
    <TD width="3%" align=center>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" align="left"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><B><FONT size=2 face="serif">PER SHARE OPERATING
          PERFORMANCE:</FONT></B>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net asset value, beginning
        of year</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">11.40</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">12.01</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.64</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">10.83</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">10.04</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Investment operations:</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment
        income</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">0.67</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.83</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.19</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.59</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized
        and unrealized gain (loss)</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">(0.58</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.74</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.18</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.41</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.80</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net increase from investment
        operations</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">0.09</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.09</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.01</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.41</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.39</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Dividends and distributions
        from:</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment
        income</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.70</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.64</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.60</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.60</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left>&nbsp; &nbsp;<FONT size=2 face="serif">Tax return
        of capital</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Total dividends and
        distributions</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">(1.00</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.70</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.64</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.60</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">(0.60</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">)</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net asset value, end
        of year</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">10.49</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.40</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">12.01</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.64</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">10.83</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Market price, end of
        year</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">10.47</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.30</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.85</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">11.15</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">9.88</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><B><FONT size=2 face="serif">TOTAL INVESTMENT
          RETURN</FONT></B><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">1.45</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.25</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">12.26</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">19.44</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">16.28</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="40%"></TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left"><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><B><FONT size=2 face="serif">RATIOS TO AVERAGE
          NET ASSETS:</FONT></B>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Total expenses</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">1.29</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.42</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.82</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2.87</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">4.06</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net expenses</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">1.29</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.42</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">1.82</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">2.87</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">4.06</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net expenses excluding
        interest expense and excise tax</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.86</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.92</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">0.88</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net investment income</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">6.04</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">7.04</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">9.98</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8.78</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">5.72</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Average net assets (000)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">105,987</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">111,990</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">113,632</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">108,142</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">98,368</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2 face="serif">20</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">8</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">4</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">17</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2 face="serif">17</FONT> </TD>
    <TD width="3%" align=left><FONT size=2 face="serif">%</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Net assets, end of year
        (000)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">99,733</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">108,439</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">114,256</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">110,685</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">103,010</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Reverse repurchase agreements
        outstanding, end of year (000)</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">39,945</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">30,078</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">27,874</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">34,500</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">48,262</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left><FONT size=2 face="serif">Asset coverage, end
        of year</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
    <TD align=right><FONT size=2 face="serif">3,497</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">4,605</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">5,099</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">4,208</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right><FONT size=2 face="serif">3,134</FONT> </TD>
    <TD width="3%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if
any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full
year are not annualized. Past performance is not a guarantee of future results.</FONT>  </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Per &#36;1,000 of reverse repurchase agreements outstanding.</FONT>   </TD>
</TR>
</TABLE>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements</FONT></P>
<P align="center">
<FONT size=2 face="serif">24</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=86% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">For the period</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 30, 2004</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">through</FONT></B>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<B><FONT size=2 face="serif">PER SHARE OPERATING PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">19.10</FONT></TD>
        <TD width="2%" align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>

        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.33</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.35</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(0.37</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">19.21</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=2>
        </TD>
        <TD width="10%">
<HR noshade size=2>
        </TD>
        <TD width="2%">
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">18.63</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=2>
        </TD>
        <TD width="10%">
<HR noshade size=2>
        </TD>
        <TD width="2%">
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">(5.00</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="86%">
        </TD>
        <TD width="2%" align="left">
<HR noshade size=2>
        </TD>
        <TD width="10%">
<HR noshade size=2>
        </TD>
        <TD width="2%">
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:</FONT></B><SUP><FONT size=2 face="serif">4,5</FONT></SUP>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net investment income before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">5.04</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">4.42</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Average net assets (000)</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">446,660</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">451,126</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">243,450</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="86%" align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD width="2%" align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width="10%" align=right>
<FONT size=2 face="serif">71,330</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<br>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR noshade size=1></TD>
  </TR>
<TR valign="top">
  <TD nowrap><SUP><FONT size=1 face="serif">1</FONT></SUP></TD>
  <TD><FONT size=1 face="serif">Commencement of investment operations. This information
    includes the initial investment by BlackRock Funding, Inc. </FONT></TD>
</TR>
<TR valign="top">
  <TD nowrap><SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">&nbsp;</FONT></TD>
  <TD><FONT size=1 face="serif">Net asset value, beginning of period, reflects
      a deduction of &#36;0.90 per share sales charge from the initial offering
    price of &#36;20.00 per share.</FONT></TD>
</TR>
<TR valign="top">
  <TD nowrap><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">&nbsp;</FONT></TD>
  <TD><FONT size=1 face="serif">Total investment return is calculated assuming
      a purchase of a share at the current market price on the first day and
      a sale at the current market price on the last day of each period reported.
      Dividends and distributions, if any, are assumed for purposes of this calculation
      to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment
      plan. Total investment returns do not reflect brokerage commissions. Total
      investment returns for less than a full year are not annualized. Past performance
    is not a guarantee of future results. </FONT></TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Annualized.</FONT>    </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.</FONT>    </TD>
</TR>
</TABLE>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements<br>
</FONT></P>
<P align="center">
<FONT size=2 face="serif">25</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP)<br>
</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=68% align=left>&nbsp;

        </TD>
        <TD width=2% align=center>&nbsp;

        </TD>
        <TD width=10% align=center>

        </TD>
        <TD width=4% align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">For the period</FONT></B>
        </TD>
        <TD width=3% align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">For the Year</FONT></B>
        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2003</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Ended</FONT></B>
        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">through</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">December 31, 2003</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<B><FONT size=2 face="serif">PER SHARE OPERATING PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.58</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23.88</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">&nbsp;</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.22</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.72</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.33</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.l6</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.37</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.00</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.66</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.07</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.66</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.88</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.39</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.01</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="68%">
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:</FONT></B><SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.19</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net investment income before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.66</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.04</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">468,110</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">449,345</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">88</FONT>
        </TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">473,809</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">468,243</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">220,800</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">220,841</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Reverse repurchase agreements outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,486</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="68%" align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,650</FONT>
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,021</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>     </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;1.12 per share sales charge from the initial offering price of &#36;25.00 per share.</FONT>        </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions,
if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full
year are not annualized. Past performance is not a guarantee of future results.</FONT>  </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.</FONT>    </TD>
</TR>
<TR valign="top">
        <TD nowrap>
<SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=1 face="serif">Annualized.</FONT>    </TD>
</TR>
</TABLE>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements</FONT></P>
<P align="center">
<FONT size=2 face="serif">26</FONT></P>

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<P>
<B><FONT face="serif">NOTES TO FINANCIAL STATEMENTS<br><hr noshade size=1></FONT></B><p></P>
<P>
<B><FONT face="serif">Note 1. Organization &amp; Accounting Policies </FONT></B><FONT size=2 face="serif"></FONT><B><FONT face="serif"> </FONT></B></P>
<P><FONT size=2 face="serif">The
  BlackRock Advantage Term Trust Inc. (&#147;Advantage&#148;), a Maryland corporation,
  is registered as a diversi-</FONT><FONT size=2 face="serif">fied, closed-end
  management investment company under the Investment Company Act of 1940, as amended. BlackRock Global Floating Rate Income Trust (&#147;Global&#148;) and BlackRock Preferred Opportunity Trust (&#147;Preferred Opportunity&#148;), are organized as Delaware statutory trusts
(collectively with Advantage, the &#147;Trusts&#148;), are registered as non-diversified and diversified, closed-end management investment companies, respectively, under the Investment Company Act of 1940, as amended.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Advantage transferred, on October 31, 1998, a substantial portion of its total assets to a 100% owned regulated investment company subsidiary called BAT Subsidiary, Inc. The financial
statements and these notes to the financial statements for Advantage are consolidated and include the operations of Advantage and its wholly owned subsidiary after elimination of all intercompany transactions and balances.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Board of Directors of Advantage adopted a Plan of Liquidation and Dissolution (each a &#147;Plan&#148;) effective January 2, 2004. Pursuant to the terms of the Plan, the Board of Directors
shall oversee the complete liquidation and winding up of Advantage in an orderly fashion prior to December 31, 2005.</FONT></P>
<P>
<FONT size=2 face="serif">The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investment Valuation: </FONT></B><FONT size=2 face="serif">The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of
each Trust&#146;s Board (the &#147;Board&#148;) of Directors/Trustees (the &#147;Trustees&#148;). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments,
quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such
investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close
of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net
asset value. Investments or other assets for which such current market quotations are not readily available are valued at fair value (&#147;Fair Value Assets&#148;) as determined in good faith under procedures established by, and under the general
supervision and responsibility of, each Trust&#146;s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The
valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to and ratified by the Board.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current
sale of that asset in an arm&#146;s-length transaction. Fair value determinations shall be based upon all available factors that BlackRock Advisors, Inc., the investment advisor, deems relevant.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investment Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investment transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost
basis. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method. Dividend income is recorded on the ex-dividend date, except certain dividends from
foreign securities where the ex-dividend date may have passed. These dividends are recorded as soon as the Trust is informed of the ex-dividend date. Dividend income on foreign securities is recorded net of any withholding tax.</FONT></P>
<P>
<B><FONT size=2 face="serif">Repurchase Agreements: </FONT></B><FONT size=2 face="serif">In connection with transactions in repurchase agreements, a Trust&#146;s custodian takes possession of the underlying collateral securities, the value of which
at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the
adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Trust may be delayed or limited.
</FONT></P>
<P>
<B><FONT size=2 face="serif">Bank Loans: </FONT></B><FONT size=2 face="serif">In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are in addition to interest payments received and may
include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may
receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees
received by a Trust may include covenant waiver fees and covenant modification fees. For these loans, the Trust commits to provide funding up to the face amount of the loan. The amount drawn down by the borrower may vary during the term of the
loan.</FONT></P>
<P>
<B><FONT size=2 face="serif">Option Writing/Purchasing: </FONT></B><FONT size=2 face="serif">When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as a liability or an asset and is
subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses.
The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or
received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying
securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Options, when used by the Trusts, help in maintaining a targeted duration. Duration is a measure of the price sensitivity of a security or a portfolio to relative changes in interest rates. For
instance, a duration of &#147;one&#148; means that a portfolio&#146;s or a security&#146;s price would be expected</FONT></P>
<P align="center">
<FONT size=2 face="serif">27</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=2 face="serif">to change by approximately one percent with a one percent change in interest rates, while a duration of five would imply that the price would move approximately five percent in relation to a one percent change in interest
rates. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Option writing and purchasing may be used by the Trusts as an attempt to manage the duration of positions, or collections of positions, so that changes in interest rates do not adversely affect
the targeted duration of the portfolio unexpectedly. A call option gives the purchaser of the option the right (but not obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise
price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option
period. Put or call options can be purchased or sold to effectively help manage the targeted duration of the portfolio.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is
considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a
Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as the result of an illiquid market.
</FONT></P>
<P>
<B><FONT size=2 face="serif">Interest Rate Swaps: </FONT></B><FONT size=2 face="serif">In an interest rate swap, one investor pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional
principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount
may decline (or amortize) over time. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by &#147;marking-to-market&#148; to reflect the market value of the swap. When the
swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust&#146;s basis in the contract, if any. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any
counterparty. </FONT></P>
<P>
<B><FONT size=2 face="serif">Swap Options: </FONT></B><FONT size=2 face="serif">Swap options are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap
option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option. Premiums received or paid from writing or purchasing options are recorded as liabilities or
assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized
gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the
premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or loss on investment transactions. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The main risk that is associated with purchasing swap options is that the swap option expires without being exercised. In this case, the option expires worthless and the premium paid for the
swap option is considered the loss. The main risk that is associated with the writing of a swap option is the market risk of an unfavorable change in the value of the interest rate swap underlying the written swap option. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Swap options may be used by the Trusts to manage the duration of the Trusts&#146; portfolios in a manner similar to more generic options described above. </FONT></P>
<P>
<B><FONT size=2 face="serif">Interest Rate Caps: </FONT></B><FONT size=2 face="serif">Interest rate caps are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the excess, if any, of a floating rate
over a specified fixed or floating rate. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Interest rate caps are intended to both manage the duration of the Trusts&#146; portfolios and their exposure to changes in short-term interest rates. Owning interest rate caps reduces a
portfolio&#146;s duration, making it less sensitive to changes in interest rates from a market value perspective. The effect on income involves protection from rising short-term interest rates, which the Trusts experience primarily in the form of
leverage.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate cap. However, the Trusts do not anticipate non-performance by any counterparty.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate cap. The
asset or liability is subsequently adjusted to the current market value of the interest rate cap purchased or sold. Changes in the value of the interest rate cap are recognized as unrealized gains and losses. </FONT></P>
<P>
<B><FONT size=2 face="serif">Interest Rate Floors: </FONT></B><FONT size=2 face="serif">Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the deficiency, if any, of a
floating rate under a specified fixed or floating rate. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Interest rate floors are used by the Trusts to both manage the duration of the portfolios and their exposure to changes in short-term interest rates. Selling interest rate floors reduces a
portfolio&#146;s duration, making it less sensitive to changes in interest rates from a market value perspective. The Trusts&#146; leverage provides extra income in a period of falling rates. Selling floors reduces some of that extra income by
partially monetizing it as an up-front payment which the Trusts receive. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate floor. However, the Trusts do not anticipate non-performance by any counterparty.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate floor. The
asset or liability is subsequently adjusted to the current market value of the interest rate floor purchased or sold. Changes in the value of the interest rate floor are recognized as unrealized gains and losses. </FONT></P>
<P align="center">
<FONT size=2 face="serif">28</FONT></P>

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<P>
<B><FONT size=2 face="serif">Financial Futures Contracts: </FONT></B><FONT size=2 face="serif">A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits
are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by &#147;marking-to-market&#148; on
a daily basis to reflect the market value of the contract at the end of each day&#146;s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust
records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust&#146;s basis in the contract. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In
the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest
rates do not change the duration of the portfolio unexpectedly. </FONT></P>
<P>
<B><FONT size=2 face="serif">Forward Currency Contracts: </FONT></B><FONT size=2 face="serif">The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the
overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to
settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is
included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts
are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band to the objectives of the Trusts. </FONT></P>
<P>
<B><FONT size=2 face="serif">Foreign Currency Translation: </FONT></B><FONT size=2 face="serif">Foreign currency amounts are translated into United States dollars on the following basis: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
        <TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD width="93%">
<FONT size=2 face="serif">market value of investment securities, other assets and liabilities&#151;at the London 4:00 PM rates of exchange.</FONT>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">purchases and sales of investment securities, income and expenses&#151;at the rates of exchange prevailing on the respective dates of such transactions.</FONT>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of
securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized and unrealized foreign exchange gains and losses including realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, maturities of
foreign reverse repurchase agreements, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the
Trusts&#146; books and the U.S. dollar equivalent amounts actually received or paid and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in
the exchange rate. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of
the foreign currency relative to the U.S. dollar. </FONT></P>
<P>
<B><FONT size=2 face="serif">Short Sales: </FONT></B><FONT size=2 face="serif">The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust makes a short sale, it may borrow
the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Trusts may have to pay a fee to borrow the particular
securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination
of a short sale if the market price is greater or less than the proceeds originally received. </FONT></P>
<P>
<B><FONT size=2 face="serif">Security Lending: </FONT></B><FONT size=2 face="serif">The Trusts may lend their portfolio securities to qualified institutions. The loans are secured by collateral at least equal, at all times, to the market value of
the securities loaned. The Trusts may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The Trusts receive compensation for lending their securities in the
form of interest on the loan. The Trusts also continue to receive interest on the securities loaned, and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the accounts of the Trusts.
The Trusts did not enter into any security lending transactions during the year ended December 31, 2004.</FONT></P>
<P>
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission (the &#147;Commission&#148;)
require that each Trust segregate assets in connection with certain investments (e.g., extended settlements, when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters
issued by the Commission, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.</FONT></P>
<P>
<B><FONT size=2 face="serif">Federal Income Taxes: </FONT></B><FONT size=2 face="serif">It is each Trust&#146;s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient
amounts of their taxable income to shareholders. Therefore, no Federal income tax provisions are required. As part of a tax planning strategy, Advantage may retain a portion of its taxable income and pay excise tax on the undistributed amounts.
</FONT></P>
<P><B><FONT size=2 face="serif">Dividends and Distributions: </FONT></B><FONT size=2 face="serif">Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital
  gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain
  distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.</FONT></P>
<P align="center">
<FONT size=2 face="serif">29</FONT></P>

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<P>
<B><FONT size=2 face="serif">Estimates: </FONT></B><FONT size=2 face="serif">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.</FONT></P>
<P>
<B><FONT size=2 face="serif">Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: </FONT></B><FONT size=2 face="serif">Under the deferred compensation plan approved by each Trust&#146;s Board, non-interested Trustees are
required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees.
This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in
common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.</FONT></P>
<P>
<B><FONT size=2 face="serif">Reclassification of CapitalAccounts: </FONT></B><FONT size=2 face="serif">In order to present undistributed (distribution in excess of) net investment income (&#147;UNII&#148;), accumulated net realized gain
(&#147;Accumulated Gain&#148;) and paid-in capital (&#147;PIC&#148;) more closely to its tax character, the following accounts for each Trust were increased (decreased):</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=30% align=left>&nbsp;

        </TD>
        <TD width=1% align=center>

        </TD>
        <TD width=8% align=center>

        </TD>
        <TD width=1% align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Accumulated</FONT></B>
        </TD>
        <TD width=1% align=center>&nbsp;

        </TD>
        <TD width=1% align=center>

        </TD>
        <TD width=8% align=center>

        </TD>
        <TD width=30% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">UNII</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Gain</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">PIC</FONT></B>
        </TD>
        <TD width="30%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD width="30%">
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="30%">&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,997,897</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,761</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,984,136</FONT>
        </TD>
        <TD width="30%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">163,845</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(148,845</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(15,000</FONT>
        </TD>
        <TD width="30%" align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(390,838</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">388,338</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,500</FONT>
        </TD>
        <TD width="30%" align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT face="serif">Note 2. Agreements </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the &#147;Advisor&#148;), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial
  Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Global and Preferred Opportunity. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc. The Investment Management
  Agreement for Global and Preferred Opportunity covers both investment advisory and administration services. Advantage has an Administration Agreement with the Advisor.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust&#146;s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.50% for Advantage, of the Trust&#146;s average weekly net assets
and 0.75% for Global and 0.65% for Preferred Opportunity of each Trust&#146;s average weekly managed assets. The administration fee paid to the Advisor is computed weekly and payable monthly based on an annual rate of 0.08% for Advantage based on
the Trust&#146;s average weekly net assets.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the
Advisor, as well as occupancy and certain clerical and accounting costs for each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for costs of employees that provide pricing, secondary market support
and compliance services to each Trust. For the period ended December 31, 2004, the Trusts reimbursed the Advisor the following amounts:</FONT></P>
<TABLE width="68%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=84% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,418</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,858</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,550</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the terms of their custody agreements, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody
fees.</FONT></P>
<P><B><FONT face="serif">Note 3. Portfolio</FONT></B>&nbsp;<B><FONT face="serif">Investments</FONT></B>&nbsp; </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Purchases and sales of investment securities, other
than short-term investments, dollar rolls and U.S.</FONT>&nbsp; <FONT size=2 face="serif">government
securities, for the period ended December 31, 2004, aggregated as follows:</FONT>&nbsp; </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="30%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
      </center></TD>
        <TD width=5% align=left></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
      </center></TD>
        <TD width=45% align=center>&nbsp;</TD>
</TR>
<TR>
        <TD width="30%">
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">23,843,784</FONT>&nbsp;
        </TD>
        <TD width="5%" align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">31,203,646</FONT>&nbsp;
        </TD>
    <TD width="45%" align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">749,888,742</FONT>&nbsp;
        </TD>
        <TD width="5%" align=left></TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">52,351,077</FONT>&nbsp;
        </TD>
    <TD width="45%" align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">582,778,552</FONT>&nbsp;
        </TD>
        <TD width="5%" align=left></TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">626,721,834</FONT>&nbsp;
        </TD>
    <TD width="45%" align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Purchases and sales of U.S. government securities for the period ended December 31, 2004, aggregated as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=30% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
        </TD>
        <TD width=45% align=center>&nbsp;</TD>
</TR>
<TR>
        <TD width="30%">
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD width="1%" align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,096,813</FONT>&nbsp;
        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="1%" align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD width="45%" align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="30%" align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD width="1%" align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,993,975</FONT>&nbsp;
        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,751,993</FONT>&nbsp;
        </TD>
    <TD width="45%" align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Trust may from time to time purchase in the secondary market certain mortgage pass-through securities packaged or master serviced by affiliates or mortgage related securities containing loans
or mortgages originated by PNC Bank or its affiliates, including Midland Loan Services, Inc., all of which are affiliates of the Advisor. It is possible under certain circumstances, that Midland Loan Services, Inc., or its affiliates, could have
interests that are in conflict with the holders of these mortgage backed securities, and such holders could have rights against Midland Loan Services, Inc. or its affiliates.</FONT></P>
<P align="center">
<FONT size=2 face="serif">30</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At December 31, 2004, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as
follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=56% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Cost</FONT></B>&nbsp;
        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Depreciation</FONT></B>&nbsp;
        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Net</FONT></B>&nbsp;
        </TD>
        <TD width=2% align=center>&nbsp;</TD>
</TR>
<TR>
        <TD width="56%">
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="56%" align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">137,226,910</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,165,548</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">271,666</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,893,882</FONT>&nbsp;
        </TD>
    <TD width="2%" align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="56%" align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">730,551,946</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,079,421</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">713,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,365,476</FONT>&nbsp;
        </TD>
    <TD width="2%" align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="56%" align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">659,479,232</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,064,704</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,524,093</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,540,611</FONT>&nbsp;
        </TD>
    <TD width="2%" align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">For Federal income tax purposes, the following Trust had capital loss carryforwards at December 31, 2004:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=40% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
        </TD>
        <TD width=7% align="center">&nbsp;
        </TD>
        <TD width=11% align=center>&nbsp;

        </TD>
    <TD width=25% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Expires</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,294</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2005</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">161,872</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2008</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">127,941</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2009</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">274,645</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2010</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">83,667</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2011</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,589,003</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
    <TD></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,335,422</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
    <TD></TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its carryforward amounts.</FONT></P>
<P> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Details of open financial futures contracts at
December 31, 2004, were as follows:</FONT>&nbsp; </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Number of</FONT></B>
        </TD>
        <TD width=2% align=center>&nbsp;

        </TD>
        <TD width=3% align="center">&nbsp;
        </TD>
        <TD width=9% align=center>

        </TD>
        <TD width=7% align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Expiration</FONT></B>&nbsp;
        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
        </TD>
        <TD width="1%" align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Value at</FONT></B>
        </TD>
        <TD width="2%" align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Unrealized</FONT></B>
        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Contracts</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Type</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Trade Date </FONT></B></TD>
        <TD align=center>&nbsp;</TD>
        <TD colspan=2 align=center><B><FONT size=2 face="serif">December 31, 2004</FONT></B> </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Depreciation</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD width="2%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="7%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align="center">
        </TD>
        <TD colspan="2" align="center">
<HR width="80" size=1 noshade>
        </TD>
        <TD width="1%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="11%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
        </TD>
        <TD width="1%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="11%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;</TD>
        <TD width="2%" align="center"><HR noshade size=1></TD>
        <TD width="9%" align="center"><HR noshade size=1></TD>
        <TD align="center">&nbsp;
        </TD>
        <TD width="2%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="9%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Short Position:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">30 Yr. U.S. T-Bond</FONT>
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">March &#146;05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">77,569,959</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,750,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,180,041</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">872</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">March &#146;05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">96,955,225</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">97,609,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(654,275</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,834,316</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=12 align=left>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Details of open forward currency contracts in Global at December 31, 2004, were as follows:</FONT>&nbsp;
<br>
<br>    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Contract to</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Settlement</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Purchase/</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Settlement</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">December 31,</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Unrealized</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Foreign Currency</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Receive</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">2004</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=2 face="serif">Depreciation</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR align="left" width="110" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR width="80" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Sold:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Euro</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">01/25/05</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">2,530,000</FONT>
        <FONT size=2 face="sans-serif">&#128;</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">3,367,954</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">3,425,437</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(57,483</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=9 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Details of open interest rate swaps at December 31, 2004, were as follows:</FONT>&nbsp;
 <br>
 <br>   </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Notional</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Unrealized</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Fixed</FONT></B>
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Floating</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Termination</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Appreciation</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Rate</FONT></B>
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Rate</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(Depreciation)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.495</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">3-month LIBOR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">10/19/2014</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">347,503</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">3-month LIBOR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">10/19/2034</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(23,644</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">323,859</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Preferred Opportunity pays a fixed interest rate and receives a floating rate.</FONT></P>
<P>
<B><FONT face="serif">Note 4. Borrowings </FONT></B><B><FONT size=2 face="serif">Reverse Repurchase Agreements: </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as
  determined by and under the direction of each Trust&#146;s Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse
  repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase
  agreement. Details of open reverse repurchase agreements at December 31, 2004, were as follows (please see corresponding Underlying Collateral chart on page 32):</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=31% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% align=center>

        </TD>
        <TD width=3% align=center>&nbsp;

        </TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Trade</FONT></B>&nbsp;
        </TD>
        <TD width=10% align=center>
<B><FONT size=2 face="serif">Maturity</FONT></B>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Net Closing</FONT></B>&nbsp;
        </TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD width=2% align=center>

        </TD>
        <TD width=9% align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust/Counter Party</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Rate</FONT></B>
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Par</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="120" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR width="80" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="9%" align=left>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;Deutsche Bank Securities, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12/2/04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1/7/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,757,160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,711,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12/2/04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1/7/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,291,733</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,263,750</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,975,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR>
        <TD colspan=14>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;Lehman Brothers, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12/31/04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1/7/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">296,010</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">295,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12/31/04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1/7/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,727,746</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,726,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12/1/04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1/6/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,954,043</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,947,500</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,969,875</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">31</FONT></P>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Details of underlying collateral for open reverse repurchase agreements at December 31, 2004, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=4% align=left>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=center>
<B><FONT size=2 face="serif">Maturity</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Original</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Current</FONT></B>&nbsp;
      </center></TD>
        <TD width=4%>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Market</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust/Counter Party</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Face</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Face</FONT></B>&nbsp;
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="7%" align="center">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;Deutsche Bank Securities, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Resolution Funding Corp.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">7/15/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">21,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,658,224</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Strips</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">8/15/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">13,500,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,500,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,286,646</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,944,870</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;Lehman Brothers, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Resolution Funding Corp.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">7/15/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">296,496</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Financing Corp. (FICO) Strips</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">7/15/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">2,800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,724,831</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Strips</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">8/15/05</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">3,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,952,588</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,973,915</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
</TABLE>
<hr noshade  width="100%" size=4>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The average daily balance and weighted average interest rate of reverse repurchase agreements during the period ended December 31, 2004, were as follows:</FONT></P>
<TABLE width="70%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Average Daily</FONT></B>&nbsp;
      </center></TD>
        <TD width=27%>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Weighted Average</FONT></B>
      </center> </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Balance</FONT></B>&nbsp;
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Interest Rate</FONT></B>
      </center> </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="3%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,839,818</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">113,937</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">781,845</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT size=2 face="serif">Dollar Rolls: </FONT></B><FONT size=2 face="serif">The Trusts may enter into dollar rolls in which a Trust sells securities for delivery in the current month and simultaneously contracts to repurchase substantially
similar (same type, coupon and maturity) securities on a specified future date. During the roll period the Trusts forgo principal and interest paid on the securities. The Trusts will be compensated by the interest earned on the cash proceeds of the
initial sale and/or by the lower repurchase price at the future date. The Trusts did not enter into any dollar roll transactions during the period ended December 31, 2004.</FONT></P>
<P>
<B><FONT face="serif">Note 5. Distributions to Shareholders </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The tax character of distributions paid during the period ended December 31, 2004, and December 31, 2003, were as follows:</FONT></P>
<TABLE width="78%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=25% align=left>&nbsp;

        </TD>
        <TD colspan="11" align=center><B><FONT size=2 face="serif">December 31, 2004</FONT></B>&nbsp;
    </TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
        <TD width="5%"><HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD width="7%"><HR noshade size=1>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD width=9% align="center">&nbsp;
        </TD>
        <TD width=2% align=center>

        </TD>
        <TD width=11% align=center>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Liquidating</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="140" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage*</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">554,749</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,917,875</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">9,472,624</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">9,709,034</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">9,709,034</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">39,597,946</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,646,231</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">41,244,177</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="5" align=center>
        &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">December 31, 2003</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center"><HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD colspan=4 align="center">
<HR noshade size=1>
        </TD>
        <TD align="center"><HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Liquidating</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage*</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">6,657,165</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">&#36;</FONT>

        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#151;&nbsp;</FONT>    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">6,657,165</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">32,241,139</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,793</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
      <div align="right"><FONT size=2 face="serif">&#151;&nbsp;</FONT></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">32,319,932</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of December 31, 2004, the components of distributable earnings on a tax basis were as follows:</FONT></P>
<TABLE width="58%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=33% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Undistributed</FONT></B>&nbsp;
        </TD>
        <TD width=6% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Undistributed</FONT></B>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD width=3% align=center>

        </TD>
        <TD width=15% align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Unrealized Net</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD height="20">
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD width="3%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="16%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
        </TD>
        <TD width="6%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="13%" align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage*</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,838,030</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
          <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">11,719,004</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">8,305,353</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,125,172</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,752,383</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">31,392,631</FONT>&nbsp;
          </div></TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=1 face="serif">* The Trust is currently under a plan of liquidation. Shareholders should consult their tax advisor as to the proper tax treatment of distribution from the Trust.</FONT></P>
<P>
<B><FONT face="serif">Note 6. Capital </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There are 200 million of &#36;0.01 par value common shares authorized for Advantage. There are an unlimited number of &#36;0.001 par value common shares authorized for
  Preferred Opportunity and Global. At December 31, 2004, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:</FONT></P>
<TABLE width="98%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=11% align=center>
<B><FONT size=2 face="serif">Common Shares</FONT></B>&nbsp;
        </TD>
        <TD width=8% align=center>&nbsp;</TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Common Shares</FONT></B>&nbsp;
        </TD>
    <TD width=43% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Owned</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
    <TD width="4%"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">9,510,667</FONT>&nbsp;
          </div></TD>
        <TD align=center>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">23,481,021</FONT>&nbsp;
          </div></TD>
        <TD align=center>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,021</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">18,305,777</FONT>&nbsp;
          </div></TD>
        <TD align=center>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">32</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Transactions in common shares of beneficial interest from August 30, 2004, (commencement of investment operations) through December 31, 2004, for Global, and February 28, 2003, (commencement of
investment operations) through December 31, 2003, for Preferred Opportunity were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center colspan=9>
<B><FONT size=2 face="serif">Shares from</FONT></B>
        </TD>
</TR>
<TR>
        <TD>&nbsp;
        </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width=20% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=12% align=center>
<B><FONT size=2 face="serif">Initial</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=18% align=center>
<B><FONT size=2 face="serif">Underwriters&#146; Exercising</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=12% align=center>
<B><FONT size=2 face="serif">Reinvestment</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=17% align=center>
<B><FONT size=2 face="serif">Net Increase in</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Public Offering</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">the Over-allotment Option</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">of Dividends</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Shares Outstanding</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">23,006,021</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">475,000</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">23,481,021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16,304,817</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
          <div align="right"><FONT size=2 face="serif">2,000,000</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">960</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">18,305,777</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the period February 28, 2003, (commencement of investment operations) through December 31, 2003, Preferred Opportunity issued 960 common shares, under the terms of its Dividend
Reinvestment Plan. During the period ended December 31, 2004, there were no additional shares issued under the terms of the Trusts&#146; Dividend Reinvestment Plans.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Offering costs of &#36;924,000 (&#36;0.04 per common share) and &#36;900,000 (&#36;0.05 per common share) incurred in connection with Global&#146;s and Preferred Opportunity&#146;s offering of
common shares, respectively, have been charged to paid-in capital in excess of par of the common shares.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of December 31, 2004, Global and Preferred Opportunity have the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value
of &#36;25,000 per share plus any accumulated unpaid dividends.</FONT></P>
<TABLE width="88%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=7% align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=7% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=5% align=center>&nbsp;</TD>
        <TD width=16% align=center>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD width=8% align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=8% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="6%" align=right>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="8%" align=right>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
    <TD width="7%" align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting discounts of &#36;2,434,500 (&#36;0.10 per common share) and &#36;2,208,000 (&#36;0.12 per common share) and offering costs of &#36;400,260 (&#36;0.02 per common share) and
&#36;389,000 (&#36;0.02 per common share) incurred in connection with the preferred share offering of Global and Preferred Opportunity, respectively, have been charged to paid-in capital in excess of par of the common shares.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend range on the preferred shares for Global and
Preferred Opportunity for the period ended December 31, 2004, was 0.98% to 2.66%, and 1.90% to 2.67%, respectively.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Global and Preferred Opportunity may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase,
asset coverage with respect to the outstanding preferred shares and any other borrowings would be less than 200%. The preferred shares are redeemable at the option of Global and Preferred Opportunity, in whole or in part, on any dividend payment
date at &#36;25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at &#36;25,000 per share plus any accumulated or unpaid dividends, whether or not declared,
if certain requirements relating to the composition of the assets and liabilities of Global and Preferred Opportunity, as set forth in Global&#146;s and Preferred Opportunity&#146;s Declaration of Trust, are not satisfied. The holders of preferred
shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect
two Trustees for Global and Preferred Opportunity. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust&#146;s sub-classification as a closed-end investment company or
change its fundamental investment restrictions and (c) change the nature of its business so as to cease to be an investment company.</FONT></P>
<P>
<B><FONT face="serif">Note 7. Dividends </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Subsequent to December 31, 2004, each Board declared dividends from undistributed earnings per common share payable January 31, 2005, to shareholders of record on January
  15, 2005. The per share common dividends declared were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
        <TD width=43% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Advantage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.058333</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.093300</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.166667</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The dividends declared on preferred shares for the period January 1, 2005, to January 31, 2005, for Global and Preferred Opportunity were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=15%>&nbsp;
        </TD>
        <TD width=7% align=center>&nbsp;

        </TD>
        <TD width=7% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
        </TD>
        <TD width=3% align="center">&nbsp;
        </TD>
        <TD width=16% align=center>&nbsp;

        </TD>
        <TD width=6% align="center">&nbsp;
        </TD>
        <TD width=7% align=center>&nbsp;

        </TD>
        <TD width=6% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="50" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="9%" align=right>
<FONT size=2 face="serif">&#36;142,629</FONT>&nbsp;
        </TD>
        <TD width="5%" align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="9%" align=right>
<FONT size=2 face="serif">&#36;130,301</FONT>&nbsp;
        </TD>
    <TD width="5%" align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">142,499</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,153</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">138,052</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">128,682</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">33</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B></P>
<P>
<FONT size=2 face="serif">To the Directors/Trustees and Shareholders of: <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Advantage Term Trust Inc.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Global Floating Rate Income Trust <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Preferred Opportunity Trust</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We have audited the accompanying statements of assets and liabilities of BlackRock Advantage Term Trust Inc., BlackRock Global Floating Rate Income Trust and BlackRock Preferred Opportunity
Trust (collectively, the &#147;Trusts&#148;), including the portfolios of investments, as of December 31, 2004, and the related statements of operations and cash flows for the periods then ended, the statements of changes in net assets for each of
the periods then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trust&#146;s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust&#146;s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide
a reasonable basis for our opinion.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of December 31, 2004, the
results of their operations and their cash flows for the periods then ended, and the changes in their net assets for each of the periods then ended, and the financial highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.</FONT></P>
<P>/s/ Deloitte &amp; Touche LLP </P>
<p><IMG src="c35834_ncsrx36x1.jpg" border=0></p>
<p><BR>
</p>
<P>
<FONT size=2 face="serif">Boston, Massachusetts <br>
February 28, 2005</FONT></P>
<P align="center">
<FONT size=2 face="serif">34</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION
    (Unaudited)</FONT></B>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><HR noshade size=1></TD>
  </TR>
</TABLE>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan=13><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
        <TD width=11% align=center>&nbsp;

        </TD>
        <TD width=1% align="center">&nbsp;
        </TD>
        <TD width=11% align=center>&nbsp;

        </TD>
        <TD width=1% align="center">&nbsp;
        </TD>
        <TD width=10% align=center>&nbsp;

        </TD>
        <TD width=1% align="center">&nbsp;
        </TD>
        <TD width=20% align=center>&nbsp;

        </TD>
        <TD width="1%" align="center">&nbsp;
        </TD>
        <TD width="9%" align=center>&nbsp;

        </TD>
        <TD width="1%" align="center">&nbsp;
        </TD>
        <TD width="12%" align=center>&nbsp;

        </TD>
        <TD width="1%" align="center">&nbsp;
        </TD>
        <TD width="17%" align=center>
<FONT size=1 face="serif">Events or transactions by</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">Number of</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">reason of which the Trustee</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=1 face="serif">Term of office</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">portfolios over-</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=1 face="serif">Other Directorships</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">is an interested person as</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=1 face="serif">Current positions</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">and length of time</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">Principal occupations</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">seen within the</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">held outside the</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">defined in Section 2(a)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Name, address, age</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">held with the Trusts</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">served</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">during the past five years</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">fund complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">fund complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">(19) of the 1940 Act</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=13>
<B><FONT size=1 face="serif">Interested Directors/Trustees</FONT></B><B><SUP><FONT size=1 face="serif">2</FONT></SUP></B>
        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Ralph L.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director since 1999 and President of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">62</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director and President of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Schlosstein</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Board</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BlackRock, Inc. since its formation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Visiting Board of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Advisor</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">in 1998 and of BlackRock, Inc.&#146;s</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Overseers of the John</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">40 East 52nd Street</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">predecessor entities since 1988.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">F. Kennedy School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member of the Management</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Government at</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10022</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Committee and Investment Strategy</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harvard University, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=1 face="serif">Age</FONT>: <FONT size=1 face="serif">53</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Group of BlackRock, Inc. Formerly,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">member of the board</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Managing Director of Lehman</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of the Financial</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brothers, Inc. and Co-head of its</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Institutions Center of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mortgage and Savings Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">The Wharton School</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Group. Chairman and President of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of the University of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the BlackRock Liquidity Funds and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pennsylvania, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of several of BlackRock&#146;s</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">trustee of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">alternative investment vehicles.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">American Museum of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Natural History, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">trustee of Trinity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">School in New York</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">City, a member of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Board of Advisors of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Marujupu LLC, and a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">trustee of New</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Visions for Public</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Education and of The</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Public Theater in New</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">York City. Formerly, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">director of Pulte</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation, the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">nation&#146;s largest home-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">builder, a Trustee of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Denison University</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and a member of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fannie Mae&#146;s</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Advisory Council.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Robert S. Kapito</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vice Chairman of BlackRock, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director and Vice</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">August 22,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Head of the Portfolio Management</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hope and Heroes</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of the Advisor</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">40 East 52nd Street</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">2002</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Group. Also a member of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Cancer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Management Committee, the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fund. President of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10022</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Investment Strategy Group, the Fixed</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Board of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">48</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Income and Global Operating</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Directors of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Committees and the Equity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Periwinkle National</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Investment Strategy Group.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Theatre for Young</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Responsible for the portfolio man-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audiences. Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">agement of the Fixed Income,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of icruise.com, Corp.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Domestic Equity and International</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Equity, Liquidity, and Alternative</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
    <TD align=left>&nbsp;
    </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Investment Groups of BlackRock.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan=13><HR noshade size=1>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

<hr noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE>


<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION (Unaudited)</FONT></B>&nbsp; <B><FONT face="serif"> (Continued)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan=11><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
        <TD width=13% align=center>&nbsp;

        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD width=12% align=center>&nbsp;

        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD width=12% align=center>&nbsp;

        </TD>
        <TD width=3% align="center">&nbsp;
        </TD>
        <TD width=23% align=center>&nbsp;

        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=1 face="serif">Number of portfo-</FONT>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD width=17% align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">lios overseen</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=1 face="serif">Current positions held</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
 &nbsp;<FONT size=1 face="serif">Term of office and</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">Principal occupations</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">within the fund</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">Other Directorships held out-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Name, address, age</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">with the Trusts</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">length of time served</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">during the past five years</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">side the fund complex</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD colspan=11>
<B><FONT size=1 face="serif">Independent Trustees</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Andrew F. Brimmer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lead Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">President of Brimmer &amp; Company, Inc., a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of CarrAmerica</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Washington, D.C.-based economic and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Realty Corporation and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">financial consulting firm, also Wilmer D.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Borg-Warner Automotive.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Barrett Professor of Economics, University</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Formerly Director of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">78</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">of Massachusetts &#150; Amherst. Formerly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Airborne Express,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">member of the Board of Governors of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BankAmerica</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Federal Reserve System. Former</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation (Bank of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Chairman, District of Columbia Financial</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">America), BellSouth</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Control Board.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation, College</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Retirement Equities Fund</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(Trustee), Commodity</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Exchange, Inc. (Public</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Governor), Connecticut</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mutual Life Insurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Company, E.I. du Pont de</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Nemours &amp; Company,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Equitable Life Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Society of the United</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">States, Gannett Company,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mercedes-Benz of North</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">America, MNC Financial</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation (American</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Security Bank), NCM</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Management,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Navistar International</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation, PHH Corp.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and UAL Corporation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(United Airlines).</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Richard E. Cavanagh</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">President and Chief Executive Officer of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee: Aircraft Finance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">The Conference Board, Inc., a leading</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trust (AFT) and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">global business research organization, from</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Educational Testing</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">1995-present. Former Executive Dean of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Service (ETS). Director,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">58</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">the John F. Kennedy School of Government</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Arch Chemicals, Fremont</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">at Harvard University from 1988-1995.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Group and The Guardian</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Acting Director, Harvard Center for</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Life Insurance Company</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Business and Government (1991-1993).</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of America.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Formerly Partner (principal) of McKinsey</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">&amp; Company, Inc. (1980-1988). Former</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Executive Director of Federal Cash</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Management, White House Office of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Management and Budget (1977-1979). Co-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;


        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">author, THE WINNING PERFORMANCE</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">(best selling management book published in</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left><FONT size=1 face="serif">&nbsp;&nbsp;13 national editions).</FONT> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Kent Dixon</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Consultant/Investor. Former President and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Former Director of ISFA</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Chief Executive Officer of Empire Federal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(the owner of INVEST, a</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Savings Bank of America and Banc PLUS</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">national securities broker-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Savings Association, former Chairman of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">age service designed for</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> &nbsp;<FONT size=1 face="serif">67</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">the Board, President and Chief Executive</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">banks and thrift</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Officer of Northeast Savings.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">institutions).</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Frank J. Fabozzi</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Consultant. Editor of THE JOURNAL OF</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director, Guardian</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">PORTFOLIO MANAGEMENT and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mutual Funds Group (18</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member</FONT><SUP><FONT size=1 face="serif">7</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Frederick Frank Adjunct Professor of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">portfolios).</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Finance at the School of Management at</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">56</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Yale University. Author and editor of sev-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">eral books on fixed income portfolio man-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">agement. Visiting Professor of Finance and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Accounting at the Sloan School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Management, Massachusetts Institute of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Technology from 1986 to August 1992.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="11" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">36</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION (Unaudited)</FONT></B>&nbsp; <B><FONT face="serif"> (Continued)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=13% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=27% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center>
<FONT size=1 face="serif">Number of</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=18% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">portfolios</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">overseen</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">within</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Current positions held</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Term of office and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">Principal occupations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">the fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other Directorships held outside</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Name, address, age</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&nbsp;&nbsp;with the Trusts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">length of time served</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">during the past five years</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the fund complex</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=11>
<B><FONT size=1 face="serif">Independent Trustees (continued)</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Kathleen F. Feldstein</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee / Advisory</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of Economics Studies, Inc., a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">19</FONT><SUP><FONT size=1 face="serif">9</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of BellSouth Inc.,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">January 19, 2005</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Belmont, MA-based private economic</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ionics, Inc., and Knight</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">consulting firm, since 1987; Chair, Board</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ridder, Inc.; Trustee of the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of Trustees, McLean Hospital in Belmont,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Museum of Fine Arts,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">63</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">MA.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Boston, and of the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Committee for Economic</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Development; Corporation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member, Partners HealthCare</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and Sherrill House; Member</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of the Visiting Committee of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Harvard University Art</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Museums and of the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Advisory Board to the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">International School of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Business at Brandeis</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">University.</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD colspan=11><HR noshade size=1>
  </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">R. Glenn Hubbard</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dean of Columbia Business School since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of ADP, Dex Media,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">November 16, 2004</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">July 1, 2004. Columbia faculty member</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">KKR Financial Corporation,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">since 1988. Co-director of Columbia</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and Ripplewood Holdings.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Business School&#146;s Entrepreneurship Program</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member of Board of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> &nbsp;<FONT size=1 face="serif">46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1994-1997. Visiting professor at the John F.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Directors of Duke Realty.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kennedy School of Government at Harvard</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Formerly on the advisory</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and the Harvard Business School, as well as</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">boards of the Congressional</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the University of Chicago. Visiting scholar at</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Budget Office, the Council</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the American Enterprise Institute in</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">on Competitiveness, the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Washington and member of International</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">American Council on Capital</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Advisory Board of the MBA Program of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Formation, the Tax</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ben-Gurion University. Deputy assistant sec-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foundation and the Center</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">retary of the U.S. Treasury Department for</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">for Addiction and Substance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tax Policy 1991-1993. Chairman of the U.S.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Abuse. Trustee of Fifth</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Council of Economic Advisers under the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Avenue Presbyterian Church</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of the United States 2001&#150;2003.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of New York.</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">James Clayburn</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dean Emeritus of the John E. Anderson</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of Payden &amp; Rygel</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">La Force, Jr.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT><SUP><FONT size=1 face="serif">10</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Graduate School of Management,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Investment Trust, Metzler-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">University of California since July 1, 1993.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Payden Investment Trust,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Acting Dean of the School of Business,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Advisors Series Trust, Arena</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hong Kong University of Science and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pharmaceuticals, Inc. and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> &nbsp;<FONT size=1 face="serif">76</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Technology 1990-1993. From 1978 to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">CancerVax Corporation.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">September 1993, Dean of the John E.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anderson Graduate School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Management, University of California.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Walter F. Mondale</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">/ since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Senior Counsel, Dorsey &amp; Whitney, LLP, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of Panasonic</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">inception</FONT><SUP><FONT size=1 face="serif">11</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">law firm (January 2004-present); Partner,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foundation&#146;s Board of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dorsey &amp; Whitney, LLP, (December 1996-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Directors and Director of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">December 2003, September 1987-August</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">United Health Foundation.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <FONT size=1 face="serif">Age:</FONT> &nbsp;<FONT size=1 face="serif">77</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1993). Formerly U.S. Ambassador to Japan</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member of the Hubert H.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(1993-1996). Formerly Vice President of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Humphrey Institute of Public</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the United States, U.S. Senator and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Affairs Advisory Board, The</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Attorney General of the State of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mike and Maureen Mans-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Minnesota. 1984 Democratic Nominee for</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">field Foundation and the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of the United States.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dean&#146;s Board of Visitors of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Medical School at the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">University of Minnesota.</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD colspan=11><HR noshade size=1>
  </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left" width="140" size=1 noshade></TD>
  </TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">The Fund Complex means two or more registered investments companies that: (1) hold themselves out to investors as related companies for pur- poses of investment and investor services; or (2) have a common investment advisor
or have an investment advisor that is an affiliated person of the investment advisor of any of the other registered investment companies.</FONT>        </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">Interested Director/Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940.</FONT>      </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">Director/Trustee since inception; appointed Chairman of the Board on August 22, 2002.</FONT>  </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">The Board is classified into three classes of which one class is elected annually. Each Director/Trustee serves a three-year term concurrent with the class from which they are elected.</FONT>       </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">The Board of each Trust has determined that each Trust has two Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer and Mr. Dixon, both of whom are independent for the purpose of the definition of
Audit Committee financial expert as applicable to the Trusts.</FONT>    </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">For Advantage appointed Director on August 11, 1994.</FONT>   </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">7</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">Appointed Audit Committee Member on May 25, 2004.</FONT>      </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">8</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">Trustee on Advantage and an Advisory Trustee on Preferred Opportunity and Global.</FONT>      </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">9</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">Director/Trustee on 19 of the closed-end Trusts and an Advisory Director/Trustee on the remaining 33 closed-end Trusts.</FONT>        </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">10</FONT></SUP>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">For Advantage appointed Director on June 19, 1992.</FONT>     </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">11</FONT></SUP>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">Except during the periods August 12, 1993 through April 15, 1997 and October 31, 2002 through November 11, 2002 for Advantage.</FONT> </TD>
</TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">37</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">DIVIDEND REINVESTMENT PLANS
</FONT></B></P>
<hr size="1" noshade>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to each Trust&#146;s respective Dividend Reinvestment Plan (the &#147;Plan&#148;), shareholders of Advantage and Global may elect, while shareholders of Preferred Opportunity are
automatically enrolled, to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares pursuant to the Plan. Shareholders who do not participate
in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the
shareholders in administering the Plan.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After Advantage and/or Global declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants&#146; account, by the purchase of
outstanding shares on the open market, on the Trust&#146;s primary exchange or elsewhere (&#147;open market purchases&#148;). These Trusts will not issue any new shares under the Plan.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After Preferred Opportunity declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants&#146; account, depending upon the
circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (&#147;newly issued shares&#148;) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the
market price per share plus estimated brokerage commissions (such condition being referred to herein as &#147;market premium&#148;), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of
newly issued shares to be credited to each participant&#146;s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the
payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition
being referred to herein as &#147;market discount&#148;), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the
dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agent&#146;s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any
Federal income tax that may be payable on such dividends or distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include
a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a &#36;2.50 sales fee and a &#36;0.15 per share sold brokerage commisson. All correspondence concerning the Plan should be
directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.</FONT></P>
<P align="center">
<B><FONT face="serif">ADDITIONAL INFORMATION</FONT></B></P>
<hr size="1" noshade>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On August 25, 2004, BlackRock, Inc., the parent of BlackRock Advisors, Inc., the Trusts&#146; investment advisor, entered into an agreement with MetLife, Inc.</FONT><SUP><FONT size=2
face="serif">&reg; </FONT></SUP><FONT size=2 face="serif">to acquire SSRM Holdings, Inc., the parent of State Street Research &amp; Management Company, the investment advisor to the State Street Research mutual funds. This acquisition was completed
on January 31, 2005. Management believes there will be no impact to the Trusts as a result of this transaction.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its chief executive officer certification regarding compliance with the NYSE&#146;s listing standards
and has filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There have been no material changes in the Trusts&#146; investment objectives or policies that have not been approved by the shareholders or to their charters or by-laws or in the principal
risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts&#146; portfolios.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Quarterly performance and other information regarding the Trusts may be found on BlackRock&#146;s website, which can be accessed at
http://www.blackrock.com/indiv/products/closedendfunds/funds.html. This reference to BlackRock&#146;s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate
BlackRock&#146;s website into this report.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for
the Advisor or Sub-Advisor; Robert S. Kapito&#151;Director and Vice Chairman of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley and Bartholomew Battista&#151;Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea, James
Kong and Vincent B. Tritto&#151;Managing Directors of the Sub-Advisor, and Brian P. Kindelan&#151;Managing Director of the Advisor.</FONT></P>
<P align="center">
<FONT size=2 face="serif">38</FONT></P>

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<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<P>&nbsp;</P>
<table width="100%"  border="0">
  <tr valign="top">
    <td width="39%"><P><FONT face="serif">Directors/Trustees<br>
&nbsp;&nbsp;&nbsp; </FONT><FONT size=2 face="serif">Ralph L. Schlosstein, </FONT><I><FONT size=2 face="serif">Chairman </FONT></I><FONT size=2 face="serif"><br>
&nbsp;&nbsp;&nbsp; Andrew F. Brimmer <br>
&nbsp;&nbsp;&nbsp; Richard E. Cavanagh <br>
&nbsp;&nbsp;&nbsp; Kent Dixon <br>
&nbsp;&nbsp;&nbsp; Frank J. Fabozzi <br>
&nbsp;&nbsp;&nbsp; Kathleen F. Feldstein</FONT><SUP><FONT size=2
face="serif">1 </FONT></SUP><FONT size=2 face="serif"><br>
&nbsp;&nbsp;&nbsp; R. Glenn Hubbard</FONT><SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif"><br>
&nbsp;&nbsp;&nbsp; Robert S. Kapito <br>
&nbsp;&nbsp;&nbsp; James Clayburn La Force, Jr. <br>
&nbsp;&nbsp;&nbsp; Walter F. Mondale</FONT></P>
        <P> <FONT face="serif">Officers<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Robert S. Kapito,<I>President<br>
&nbsp;&nbsp;&nbsp; </I>Henry Gabbay, <I>Treasurer<br>
&nbsp;&nbsp;&nbsp; </I>Bartholomew Battista, <I>Chief Compliance Officer<br>
&nbsp;&nbsp;&nbsp; </I>Anne Ackerley, <I>Vice President<br>
&nbsp;&nbsp;&nbsp; </I>Richard M. Shea, <I>Vice President/Tax<br>
&nbsp;&nbsp;&nbsp; </I>James Kong, <I>Assistant Treasurer<br>
&nbsp;&nbsp;&nbsp; </I>Vincent B. Tritto, <I>Secretary<br>
&nbsp;&nbsp;&nbsp; </I>Brian P. Kindelan, <I>Assistant Secretary</I></FONT></P>
        <P> <FONT face="serif">Investment Advisor<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">BlackRock Advisors, Inc. <br>
&nbsp;&nbsp;&nbsp; 100 Bellevue Parkway <br>
&nbsp;&nbsp;&nbsp; Wilmington, DE 19809<br>
&nbsp;&nbsp;&nbsp; (800) 227-7BFM</FONT></P>
        <P> <FONT face="serif">Sub-Advisor</FONT><SUP><FONT face="serif">2<br>
  &nbsp;&nbsp;&nbsp; </FONT></SUP><FONT size=2 face="serif">BlackRock Financial
  Management, Inc.<br>
          &nbsp;&nbsp;&nbsp; 40 East 52nd Street <br>
          &nbsp;&nbsp;&nbsp; New York, NY 10022</FONT></P>
        <P> <FONT face="serif">Accounting Agent and Custodian<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">State Street Bank and Trust
  Company <br>
&nbsp;&nbsp;&nbsp; 225 Franklin Street <br>
&nbsp;&nbsp;&nbsp; Boston, MA 02110</FONT></P></td>
    <td width="16%">&nbsp;</td>
    <td width="45%"><P><FONT face="serif">Transfer Agent<br>
&nbsp;&nbsp;&nbsp; </FONT><FONT size=2 face="serif">EquiServe Trust Company,
N.A. <br>
&nbsp;&nbsp;&nbsp; 250 Royall Street <br>
&nbsp;&nbsp;&nbsp; Canton, MA 02021 <br>
&nbsp;&nbsp;&nbsp; (800) 699-1BFM</FONT></P>
        <P> <FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">2<br>
  &nbsp;&nbsp;&nbsp; </FONT></SUP><FONT size=2 face="serif">Bank of New York <br>
  &nbsp;&nbsp;&nbsp; 101 Barclay Street, 7 West<br>
  &nbsp;&nbsp;&nbsp; New York, NY 10286</FONT></P>
        <P> <FONT face="serif">Independent Registered Public Accounting Firm<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Deloitte &amp; Touche LLP <br>
&nbsp;&nbsp;&nbsp; 200 Berkeley Street <br>
&nbsp;&nbsp;&nbsp; Boston, MA 02116</FONT></P>
        <P> <FONT face="serif">Legal Counsel<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Skadden, Arps, Slate, Meagher &amp; Flom
  LLP <br>
&nbsp;&nbsp;&nbsp; Four Times Square<br>
&nbsp;&nbsp;&nbsp; New York, NY 10036</FONT></P>
        <P> <FONT face="serif">Legal Counsel &#150; Independent Trustees<br>
  &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Debevoise &amp; Plimpton
  LLP<br>
&nbsp;&nbsp;&nbsp; 919 Third Avenue <br>
&nbsp;&nbsp;&nbsp; New York, NY 10022</FONT></P>
        <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This report
            is for shareholder information. This is not a prospectus intended
            for use in the purchase or sale of Trust shares. Statements and other
            information contained in this report are as dated and are subject
            to change.</FONT></P>
        <P> <FONT size=2 face="serif">BlackRock Closed-End Funds <br>
c/o BlackRock Advisors, Inc.<br>
100 Bellevue Parkway <br>
Wilmington, DE 19809<br>
(800) 227-7BFM</FONT></P></td>
  </tr>
</table>
<hr align="left" width="140" noshade>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Trustee for Advantage only. Advisory Trustee for Global and Preferred Opportunity. Appointed on January 19, 2005 for each trust.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">For Global and Preferred Opportunity.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Appointed on November 16, 2004.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called
&#147;householding&#148; and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the
mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800)669-1BFM.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor&#146;s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies
and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">Information on how proxies relating to the Trusts&#146; voting securities were voted (if any) by the Advisor during the most recent 12-month period ended December 31st is available, upon request, by calling (800) 699-1BFM
or on the website of the Commission at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust&#146;s Form N-Q will be available on the
Commission&#146;s website at http://www.sec.gov. Each Trust&#146;s Form N-Q, when available, may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. Each Trust&#146;s Form N-Q, when available, may also be obtained, upon request, by calling (800) 699-1BFM.</FONT></P>

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<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table width="100%"  border="0">
  <tr>
    <td width="26%"><FONT size=1 face="sans-serif">This report is for shareholder information.
        This is not a prospectus intended for use in the purchase or sale of
        Trust shares. Statements and other information contained in this report
    are as dated and are subject to change.</FONT></td>
    <td width="74%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT size=1 face="sans-serif">CEF-ANN-5</FONT></td>
    <td><div align="right"><IMG src="c35834_ncsrx44x1.jpg" border=0></div></td>
  </tr>
</table>

<P>&nbsp;</P>
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<P>
  <B><FONT size=2 face="serif">Item 2. Code of Ethics.</FONT></B> <br>
  <FONT size=2 face="serif">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar
functions. </FONT></P>
<P><font size=2 face="serif">(b)</font><font size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2 face="serif">Not applicable.</font> </P>
<P> <font size=2 face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. </font></P>
<P>
<FONT size=2 face="serif">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. </FONT></P>
<P><font size=2 face="serif">(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2 face="serif">Not applicable.</font> </P>
<P> <font size=2 face="serif">(f)</font><font size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2 face="serif">The Registrant's Code of Ethics is attached as an Exhibit hereto.</font></P>
<P>
<B><FONT size=2 face="serif">Item 3. Audit Committee Financial Expert.</FONT></B>
<FONT size=2 face="serif"><br>
The Registrant's Board of Trustees has determined that it has two audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustee: Dr. Andrew F. Brimmer and Mr. Kent Dixon. Under
applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result
of being designated or identified as an audit committee financial expert.  The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater
than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. </FONT></P>
<P><B><FONT size=2 face="serif">Item 4. Principal Accountant Fees and Services.<br>
  </FONT></B>
  <FONT size=2 face="serif">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Audit Fees</U>.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the
  Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were &#36;32,000 for the fiscal year ended December 31, 2004
  and &#36;32,800 for the fiscal year ended December 31, 2003. </FONT></P>
<P>
<FONT size=2 face="serif">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Audit-Related Fees</U>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably
related to the performance of the audit of the Registrant&#146;s financial statements and are not</FONT></P>

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<FONT size=2 face="serif">reported above in Item 4(a) were &#36;5,300 for the fiscal year ended December 31, 2004 and &#36;3,000 for the fiscal year ended December 31, 2003. The nature of these services was attest services not required by statute or
regulation, overhead and out-of-pocket expenses.</FONT></P>
<P>
  <FONT size=2 face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Tax Fees</U>.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice
  and tax planning were &#36;6,200 for the fiscal year ended December 31, 2004 and &#36;25,000 for the fiscal year ended December 31, 2003. The nature of these services was federal, state and local income and excise tax return preparation and related
  advice and planning and miscellaneous tax advice.</FONT></P>
<P>
  <FONT size=2 face="serif">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>All Other Fees</U>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services
  reported above in Items 4(a) through (c).</FONT></P>
<P>
  <FONT size=2 face="serif">(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Audit Committee Pre-Approval Policies and Procedures</U>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<br>
  <FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp; &nbsp;</FONT><FONT size=2 face="serif">(1) The Registrant has polices and procedures (the "Policy") for the pre-approval by the Registrant's Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy)
  provided by the Trust's independent auditor (the "Independent Auditor") to the Registrant and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee
  specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the Audit Committee will review and
  re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the
  services pre-approved, the aggregate level of fees pre-approved or both.</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Trust and (B) all engagements for
  non-audit services related directly to the operations and financial reporting or the Trust to be provided by the Independent Auditor to any Covered Entity, "Covered Entities" means (1) the Advisor or (2) any entity controlling, controlled by or
  under common control with the Advisor that provides ongoing services to the Trust.</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the "Chairman").
    The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by
    the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This
    modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both.  Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and
    the</FONT></P>
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<FONT size=2 face="serif">Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so.</FONT></P>
<P> <FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service
  Pre-Approval Documents.  Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority).</FONT></P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated
  authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters.</FONT></P>
<P> <FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Trust not listed in the Service Pre-Approval Document for the
  respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).</FONT></P>
<P> <FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the
  Registrant and, to the extent they are Covered Services, the other Covered Entities (as defined in the Joint Audit Committee Charter) or that are traditionally performed by the Independent Auditor.  Audit-Related services that are Covered Services
  and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee believes that the Independent Auditor can provide Tax services to the Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditor&#146;s
  independence. However, the Audit Committee will not permit the retention of the Independent Auditor in connection with a transaction initially recommended by the Independent Auditor, the sole business purpose of which may be tax avoidance and the
  tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically
  pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant
    to delegated authority).</FONT></P>
<P><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the
    Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the
    rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC.  A request or application submitted to the Chairman between scheduled meetings of
    the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee. </FONT></P>
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<FONT size=2 face="serif">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.</FONT></P>
<P>
  <FONT size=2 face="serif">(f)  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</FONT></P>
<P>
  <FONT size=2 face="serif">(g)  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate non-audit fees billed by the Trust's accountant for services rendered to the Trust, the Advisor (except for any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by
    another investment adviser) or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the registrant that directly impacted the Trust for each of the last two fiscal years were &#36;11,500
  for the fiscal year ended December 31, 2004 and &#36;28,000 for the fiscal year ended December 31, 2003. </FONT>  </P>
<P><FONT size=2 face="serif">(h)  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</FONT>  </P>
<P><B><FONT size=2 face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B>
  <FONT size=2 face="serif"><br>
  The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The Audit Committee of the Registrant is comprised of:  Dr. Andrew F.
  Brimmer; Richard E. Cavanagh; Kent Dixon and Frank Fabozzi.</FONT></P>
<P>
  <B><FONT size=2 face="serif">Item 6. Schedule of Investments. </FONT></B>
  <FONT size=2 face="serif"><br>
  The Registrant&#146;s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form. </FONT>  </P>
<P><B><FONT size=2 face="serif">Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. </FONT></B>
  <FONT size=2 face="serif"><br>
  The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the
"Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the "Proxy Voting Policies") are attached as an Exhibit 99.PROXYPOL hereto.</FONT></P>
<P>
  <B><FONT size=2 face="serif">Item 8. Portfolio Managers of Closed-End Management Investment Companies </FONT></B>
  <FONT size=2 face="serif"><br>
  Not applicable. </FONT>  </P>
<P><B><FONT size=2 face="serif">Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers. </FONT></B>
  <FONT size=2 face="serif"><br>
  Not applicable. </FONT>  </P>
<P><B><FONT size=2 face="serif">Item 10. Submission of Matters to a Vote of Security Holders. </FONT></B>
  <FONT size=2 face="serif"><br>
  Not applicable. </FONT>  </P>
<P><B><FONT size=2 face="serif">Item 11. Controls and Procedures.</FONT></B></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_6"></A>
<P><FONT size=2 face="serif">(a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures as of a date within 90 days of this filing and have concluded that the
  Registrant&#146;s disclosure controls and procedures are effective, as of such date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.</FONT></P>
<P>
  <FONT size=2 face="serif">(b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's last fiscal half-year
  that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. </FONT>  </P>
<P><B><FONT size=2 face="serif">Item 12. Exhibits.</FONT></B>  </P>
<P><FONT size=2 face="serif">(a) (1) Code of Ethics attached as EX-99.CODE ETH.</FONT></P>
<P>
  <FONT size=2 face="serif">(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.</FONT></P>
<P>
  <FONT size=2 face="serif">(a) (3) Not applicable.</FONT></P>
<P>
  <FONT size=2 face="serif">(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT. </FONT>  </P>
<P><FONT size=2 face="serif">Proxy Voting Policies attached as EX-99.PROXYPOL. </FONT></P>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_7"></A>

<P align="center">
<B><FONT size=2 face="serif">SIGNATURES</FONT></B></P>
<P><FONT size=2 face="serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
  </FONT>  </P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="16%" align=left><font size=2 face="serif">(Registrant)</font></TD>
    <TD width="84%" align=left><font size=2 face="serif">BlackRock Global Floating Rate Income Trust</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><HR noshade  width="100%" size=1></TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD height="23" align=left>
<FONT size=2 face="serif">By:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;/s/ Henry Gabbay</FONT></TD>
</TR>
<TR valign="bottom">
  <TD width=6% align=left>&nbsp;</TD>
  <TD width=94% align=left><HR noshade  width="100%" size=1></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Name: </FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Henry Gabbay</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Title: </FONT>
	</TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Treasurer</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Date:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;September 15, 2005 </FONT></TD>
</TR>
</TABLE><BR>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates
indicated. </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">By:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;/s/ Robert S. Kapito</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD width=6% align=left>&nbsp;</TD>
    <TD width=94% align=left><HR noshade  width="100%" size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Name: </FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Robert S. Kapito</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Title: </FONT> </TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Treasurer</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Date:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;September 15, 2005</FONT></TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">By:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;/s/ Henry Gabbay</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD width=6% align=left>&nbsp;</TD>
    <TD width=94% align=left><HR noshade  width="100%" size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Name: </FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Henry Gabbay</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Title: </FONT> </TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;Principal Financial Officer</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Date:</FONT></TD>
    <TD align=left><FONT size=2 face="serif">&nbsp;&nbsp;September 15, 2005</FONT></TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<P align="center"><FONT size=2 face="serif">6</FONT><BR>
</P>
<HR noshade  width="100%" size=4>


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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CODE ETH
<SEQUENCE>7
<FILENAME>c38906_ex99codeeth.htm
<TEXT>

<HTML>
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<BODY bgcolor="#ffffff">
<A name="page_1"></A>

<P align="center">
<B><FONT size=2 face="serif">JOINT CODE OF ETHICS <br>
FOR <br>
</FONT></B><B><FONT size=2 face="serif">CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS <br>
OF <br>
</FONT></B><B><FONT size=2 face="serif">THE BLACKROCK CLOSED-END FUNDS </FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">AS ADOPTED BY THE BOARDS OF TRUSTEES/DIRECTORS <br>
MAY 2003 </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each BlackRock Closed-End Fund (each a &#147;</FONT><U><FONT size=2 face="serif">Trust</FONT></U><FONT size=2 face="serif">&#148; and, collectively, the &#147;</FONT><U><FONT size=2 face="serif">Trusts</FONT></U><FONT size=2 face="serif">&#148;)</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP><FONT size=2 face="serif"> is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate
disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to the Trust&#146;s Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions)
(together, &#147;</FONT><U><FONT size=2 face="serif">Senior</FONT></U><FONT size=2 face="serif"> </FONT><U><FONT size=2 face="serif">Officers</FONT></U><FONT size=2 face="serif">&#148;), sets forth policies to guide you in the performance of your duties. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating
a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in
the future serve as Senior Officers of each of the Trusts, as officers or employees of the Trust&#146;s investment advisor (the &#147;</FONT><U><FONT size=2 face="serif">Advisor</FONT></U><FONT size=2 face="serif">&#148;) and/or affiliates of the Trust&#146;s
investment advisor (collectively with the Advisor, &#147;</FONT><U><FONT size=2 face="serif">BlackRock</FONT></U><FONT size=2 face="serif">&#148;) and as officers or trustees/directors of other registered investment companies and unregistered investment funds
advised by BlackRock. This Code of Ethics also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Trust or BlackRock govern your conduct in connection with many of the conflict of interest
situations that arise in connection with the operations of the Trust, including: </FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2" valign=top nowrap><HR align="left"  width="10%" size=1 noshade></TD>
  </TR>
<TR>
	<TD width="21" valign=top nowrap><font size="2" face="serif">1</font></TD>
	<TD width="1065">
<FONT size=2 face="serif">This Joint Code of Ethics for Chief Executive and Senior Financial Officers has been adopted by the Board of Trustees/Directors for each Trust. Solely for the sake of clarity and simplicity, this Joint Code of Ethics has
been drafted as if there is a single Trust, a single Governance Committee and a single Board of Trustees/Directors. The terms &#147;Trustees,&#148; &#147;Independent Trustees&#148; and &#147;Governance Committee&#148; mean the Trustees, the
Independent Trustees and the Governance Committee of each Trust, respectively, unless the context otherwise requires. The Trustees, the Independent Trustees and the Governance Committee of each Trust, however, shall act separately and in the best
interests of its respective Trust.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_2"></A>

<UL>
<LI>
<FONT size=2 face="serif">the Investment Company Act of 1940, and the rules and regulation</FONT> <FONT size=2 face="serif">promulgated thereunder by the Securities and Exchange Commission (the</FONT> <FONT size=2 face="serif">&#147;</FONT><U><FONT size=2 face="serif">1940
Act</FONT></U><FONT size=2 face="serif">&#148;);</FONT></LI>
<LI>
<FONT size=2 face="serif">the Investment Advisers Act of 1940, and the rules and regulations</FONT> <FONT size=2 face="serif">promulgated thereunder by the Securities and Exchange Commission (the</FONT> <FONT size=2 face="serif">&#147;</FONT><U><FONT size=2 face="serif">Advisers Act</FONT></U><FONT size=2 face="serif">&#148;);</FONT></LI>
<LI>
<FONT size=2 face="serif">the Code of Ethics adopted by the Trust and the other Trusts pursuant to</FONT> <FONT size=2 face="serif">Rule 17j-1(c) under the 1940 Act (collectively, the &#147;Trust&#146;s 1940 Act</FONT> <U><FONT size=2 face="serif">Code of
Ethics</FONT></U><FONT size=2 face="serif">&#148;);</FONT></LI>
<LI>
<FONT size=2 face="serif">one or more codes of ethics adopted by BlackRock that have been</FONT> <FONT size=2 face="serif">reviewed and approved by those trustees/directors (the &#147;</FONT><U><FONT size=2 face="serif">Trustees</FONT></U><FONT size=2 face="serif">&#148;) of
the</FONT> <FONT size=2 face="serif">Trust that are not &#147;interested persons&#148; of the Trust (the &#147;</FONT><U><FONT size=2 face="serif">Independent</FONT></U> <U><FONT size=2 face="serif">Trustees</FONT></U><FONT size=2 face="serif">&#148;) within the meaning of the
1940 Act (the &#147;BlackRock&#146;s 1940</FONT> <U><FONT size=2 face="serif">Act Code of Ethics</FONT></U><FONT size=2 face="serif">&#148; and, together with the Trust&#146;s 1940 Act Code of</FONT> <FONT size=2 face="serif">Ethics, the &#147;</FONT><U><FONT size=2 face="serif">1940 Act Codes of Ethics</FONT></U><FONT size=2 face="serif">&#148;);</FONT></LI>
<LI>
<FONT size=2 face="serif">the policies and procedures adopted by the Trust and the other Trusts to</FONT> <FONT size=2 face="serif">address conflict of interest situations, such as procedures under Rule 10f-3</FONT> <FONT size=2 face="serif">and Rule 17a-7 under the
1940 Act (collectively, the &#147;</FONT><U><FONT size=2 face="serif">Trust Policies</FONT></U><FONT size=2 face="serif">&#148;); and</FONT></LI>
<LI>
<FONT size=2 face="serif">BlackRock's general policies and procedures to address, among other</FONT> <FONT size=2 face="serif">things, conflict of interest situations and related matters (collectively, the</FONT> <FONT size=2 face="serif">&#147;</FONT><U><FONT size=2 face="serif">BlackRock Policies</FONT></U><FONT size=2 face="serif">&#148;).</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Trust Policies and the BlackRock Policies are referred to herein collectively as the &#147;</FONT><U><FONT size=2 face="serif">Additional Conflict
Rules</FONT></U><FONT size=2 face="serif">&#148;. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not
to be a violation of this Code of Ethics, unless and until the Governance Committee of the Trustees (the &#147;</FONT><U><FONT size=2 face="serif">Governance Committee</FONT></U><FONT size=2 face="serif">&#148;) shall determine that any such violation of the
Additional Conflict Rules is also a violation of this Code of Ethics. </FONT></P>
<P>
<B><FONT size=2 face="serif">Senior Officers Should Act Honestly and Candidly </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Senior Officer has a responsibility to the Trust to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent
with integrity. </FONT></P>
<P>
<FONT size=2 face="serif">Each Senior Officer must:</FONT></P>
<P align="center"><FONT size=2 face="serif">2</FONT></P>
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<UL>
<LI>
<FONT size=2 face="serif">act with integrity, including being honest and candid while still</FONT> <FONT size=2 face="serif">maintaining the confidentiality of information where required by law or</FONT> <FONT size=2 face="serif">the Additional Conflict
Rules;</FONT></LI>
<LI>
<FONT size=2 face="serif">comply with the laws, rules and regulations that govern the conduct of the</FONT> <FONT size=2 face="serif">Trust&#146;s operations and report any suspected violations thereof in</FONT> <FONT size=2 face="serif">accordance with the section
below entitled &#147;Compliance With Code Of</FONT> <FONT size=2 face="serif">Ethics&#148;; and</FONT></LI>
<LI>
<FONT size=2 face="serif">adhere to a high standard of business ethics.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Conflicts Of Interest</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Trust. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Trust, keeping in mind that Senior Officers are subject to certain inherent conflicts of
interest because Senior Officers of a Trust also are or may be officers of other Trusts, BlackRock and other funds advised or serviced by BlackRock (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the
Additional Conflict Rules). </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">You are required to conduct the business of the Trust in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business
relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to the
Trust where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of the Trust, you should make full disclosure of all relevant facts and circumstances to
the general counsel of BlackRock (the &#147;</FONT><U><FONT size=2 face="serif">General</FONT></U><FONT size=2 face="serif"> </FONT><U><FONT size=2 face="serif">Counsel</FONT></U><FONT size=2 face="serif">&#148;) and obtain the approval of the General Counsel prior to taking
action.</FONT><SUP><FONT size=2 face="serif"> </FONT></SUP></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Some conflict of interest situations that should always be approved by the General Counsel, if material, include the following: </FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">the receipt of any entertainment or non-nominal gift by the Senior Officer,</FONT> <FONT size=2 face="serif">or a member of his or her family, from any company with which the Trust</FONT> <FONT size=2 face="serif">has current or prospective
business dealings (other than BlackRock),</FONT> <FONT size=2 face="serif">unless such entertainment or gift is business related, reasonable in cost,</FONT> <FONT size=2 face="serif">appropriate as to time and place, and not so frequent as to raise any</FONT>
<FONT size=2 face="serif">question of impropriety;</FONT></LI>
</UL>
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<LI>
<FONT size=2 face="serif">any ownership interest in, or any consulting or employment relationship</FONT> <FONT size=2 face="serif">with, any of the Trust&#146;s service providers, other than BlackRock; or</FONT></LI>
<LI>
<FONT size=2 face="serif">a direct or indirect financial interest in commissions, transaction charges</FONT> <FONT size=2 face="serif">or spreads paid by the Trust for effecting portfolio transactions or for</FONT> <FONT size=2 face="serif">selling or redeeming shares
other than an interest arising from the Senior</FONT> <FONT size=2 face="serif">Officer's employment by BlackRock, such as compensation or equity</FONT> <FONT size=2 face="serif">ownership.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Disclosures</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">It is the policy of the Trust to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Trust
files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Trust. As a Senior Officer, you are required to promote compliance with this policy and to abide
by the Trust&#146;s standards, policies and procedures designed to promote compliance with this policy.  </FONT></P>
<ul>
<FONT size=2 face="serif">Each Senior Officer must:</FONT></ul>
<UL>
<LI>
<FONT size=2 face="serif">familiarize himself or herself with the disclosure requirements applicable</FONT> <FONT size=2 face="serif">to the Trust as well as the business and financial operations of the Trust;</FONT> <FONT size=2 face="serif">and</FONT></LI>
<LI>
<FONT size=2 face="serif">not knowingly misrepresent, or cause others to misrepresent, facts about</FONT> <FONT size=2 face="serif">the Trust to others, including to the Trustees, the Trust&#146;s independent</FONT> <FONT size=2 face="serif">auditors, the Trust&#146;s
counsel, counsel to the Independent Trustees,</FONT> <FONT size=2 face="serif">governmental regulators or self-regulatory organizations.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Compliance With Code Of Ethics</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Trust, you must report that information on a timely basis to the
General Counsel or report it anonymously by following the &#147;whistle blower&#148; policies adopted by BlackRock from time to time. </FONT><I><FONT size=2 face="serif">No one will be subject to retaliation because of a good faith report of a suspected
violation</FONT></I><FONT size=2 face="serif">. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trust will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics: </FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">the General Counsel will take all appropriate action to investigate any</FONT> <FONT size=2 face="serif">actual or potential violations reported to him or her;</FONT></LI>
<LI>
<FONT size=2 face="serif">violations and potential violations will be reported to the Governance</FONT> <FONT size=2 face="serif">Committee after such investigation;</FONT></LI>
</UL>
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<UL>
<LI>
<FONT size=2 face="serif">if the Governance Committee determines that a violation has occurred, it</FONT> <FONT size=2 face="serif">will take all appropriate disciplinary or preventive action; and</FONT></LI>
<LI>
<FONT size=2 face="serif">appropriate disciplinary or preventive action may include a letter of</FONT> <FONT size=2 face="serif">censure, suspension, dismissal or, in the event of criminal or other serious</FONT> <FONT size=2 face="serif">violations of law, notification
of the Securities and Exchange Commission</FONT> <FONT size=2 face="serif">or other appropriate law enforcement authorities.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Waivers Of Code Of Ethics</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Except as otherwise provided in this Code of Ethics, the General Counsel is responsible for applying this Code of Ethics to specific situations in which questions are presented to the General Counsel
and has the authority to interpret this Code of Ethics in any particular situation. The General Counsel shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The General Counsel is authorized to consult, as appropriate, with the chair of the Governance Committee and with counsel to the Trust, BlackRock or the Independent Trustees, and is encouraged to do
so. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Governance Committee is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form
N-CSR, or otherwise, as provided by Securities and Exchange Commission rules.</FONT></P>
<P>
<B><FONT size=2 face="serif">Recordkeeping</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trust will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or
materials supplied to the Governance Committee: </FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">that provided the basis for any amendment or waiver to this Code of</FONT> <FONT size=2 face="serif">Ethics; and</FONT></LI>
<LI>
<FONT size=2 face="serif">relating to any violation of this Code of Ethics and sanctions imposed for</FONT> <FONT size=2 face="serif">such violation, together with a written record of the approval or action</FONT> <FONT size=2 face="serif">taken by the Governance
Committee.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Confidentiality</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law
or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Trustees and their counsel, the Trust and its counsel, BlackRock and its counsel and any other advisors, consultants or counsel retained by the
Trustees, the Independent Trustees or any committee of the Trustees. </FONT></P>
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<P>
<B><FONT size=2 face="serif">Amendments</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Code of Ethics may not be amended except in written form, which is specifically approved by a majority vote of the Trustees, including a majority of the Independent Trustees. </FONT></P>
<P>
<B><FONT size=2 face="serif">No Rights Created</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Trust's business. It is not intended to and
does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. </FONT></P>
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  <font size="2" face="serif">6</font>
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<FONT size=2 face="serif">ACKNOWLEDGMENT FORM</FONT></P>
<P>
<FONT size=2 face="serif">I have received and read the Joint Code of Ethics for Chief Executive and Senior Financial Officers, and I understand its contents. I agree to comply fully with the standards contained in the Code of Ethics and the Company's
related policies and procedures. I understand that I have an obligation to report any suspected violations of the Code of Ethics on a timely basis to the General Counsel or report it anonymously by following the &#147;whistle blower&#148; policies
adopted by BlackRock from time to time. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=50% align=left>&nbsp;
</TD>
    <TD width=50% align=left><hr align="left" width="90%" size=1 noshade></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><font size=2 face="serif">Printed Name</font>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><hr align="left" width="90%" size=1 noshade></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;
	</TD>
    <TD align=left><font size=2 face="serif">Signature</font></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><hr align="left" width="90%" size=1 noshade></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">Date</FONT></TD>
</TR>
</TABLE>
<p><BR>
</p>
<p>&nbsp;</p>
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<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>8
<FILENAME>c38906_ex99cert.htm
<TEXT>
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<P align="right"><B><FONT size=2 face="serif">EX-99.CERT</FONT></B></P>
<P> <B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</FONT></B></P>
<P> <B><U><FONT size=2 face="serif">CERTIFICATIONS</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P> <FONT size=2 face="serif">I, Robert Kapito, certify that:</FONT></P>
<P> <FONT size=2 face="serif">1. &nbsp;&nbsp;I have reviewed this report on Form N-CSR of BlackRock Global Floating Rate Income Trust; </FONT></P>
<P> <FONT size=2 face="serif">2. &nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P>
<P> <FONT size=2 face="serif">3. &nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; </FONT></P>
<P><FONT size="2" face="serif">4. &nbsp;&nbsp;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: </FONT></P>
<P> <FONT size=2 face="serif">a) &nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT></P>
<P><FONT size="2" face="serif">b) &nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P> <FONT size=2 face="serif">c</FONT><FONT size=2 face="serif">) &nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</FONT> </P>
<P><FONT size="2" face="serif">d) &nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant&#146;s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT> </P>
<P> <FONT size=2 face="serif">5. &nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P> <FONT size=2 face="serif">a) &nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and </FONT></P>
<P> <FONT size=2 face="serif">b)&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. <br>
</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=5% align=left><FONT size=2 face="serif">Date:</FONT>&nbsp; </TD>
    <TD width=20%><FONT size=2 face="serif">September 15, 2005</FONT></TD>
    <TD width=31% align=left>&nbsp;</TD>
    <TD width=44% align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">/s/ Robert S. Kapito</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">Robert S. Kapito</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">Principal Executive Officer</FONT>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
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<PAGE> <A name="page_10"></A>
<P align="right"> <B><FONT size=2 face="serif">EX-99.CERT</FONT></B></P>
<P> <B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</FONT></B></P>
<P> <B><U><FONT size=2 face="serif">CERTIFICATIONS</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P> <FONT size=2 face="serif">I, Henry Gabbay, certify that:</FONT></P>
<P> <FONT size=2 face="serif">1.&nbsp;&nbsp; I have reviewed this report on Form N-CSR of BlackRock Global Floating Rate Income  Trust; </FONT></P>
<P> <FONT size=2 face="serif">2. &nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P>
<P> <FONT size=2 face="serif">3. &nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; </FONT></P>
<P><FONT size="2" face="serif">4. &nbsp;&nbsp;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: </FONT></P>
<P> <FONT size=2 face="serif">a) &nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT></P>
<P><FONT size="2" face="serif">b) &nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P> <FONT size=2 face="serif">c</FONT><FONT size=2 face="serif">) &nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</FONT> </P>
<P><FONT size="2" face="serif">d) &nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant&#146;s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT> </P>
<P> <FONT size=2 face="serif">5. &nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P> <FONT size=2 face="serif">a) &nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and </FONT></P>
<P> <FONT size=2 face="serif">b) &nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. <br>
</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=5% align=left><FONT size=2 face="serif">Date:</FONT>&nbsp; </TD>
    <TD width=20%><FONT size=2 face="serif">September 15 , 2005</FONT></TD>
    <TD width=31% align=left>&nbsp;</TD>
    <TD width=44% align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">/s/ Henry Gabbay</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">Henry Gabbay</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">Principal Financial Officer</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>9
<FILENAME>c38906_ex99-906cert.htm
<TEXT>
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<P><B><U><FONT size=2 face="serif">SECTION 906 CERTIFICATION</FONT></U></B></P>
<P> <FONT size=2 face="serif">Pursuant to 18 U.S.C. &sect; 1350, the undersigned officers of BlackRock Global Floating Rate Income Trust (the "Company"), hereby certifies, to the best of their knowledge, that the Company's Report on Form N-CSR for the period ended December 31, 2004, (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=10% align=left><FONT size=2 face="serif">Dated:</FONT>&nbsp; </TD>
    <TD width=90% align=left><FONT size=2 face="serif">September 15, 2005</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">/s/ Robert S. Kapito</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><hr noshade size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Name:</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">Robert S. Kapito</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Title:</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">Principal Executive Officer</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">/s/ Henry Gabbay</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><hr noshade size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Name:</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">Henry Gabbay</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Title:</FONT>&nbsp; </TD>
    <TD align=left><FONT size=2 face="serif">Principal Financial Officer</FONT>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P align="center"> <FONT size=2 face="serif">11</FONT></P>
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<DOCUMENT>
<TYPE>EX-99.PROXYPOL
<SEQUENCE>10
<FILENAME>c38906_ex99proxypol.htm
<TEXT>

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<P align="center">
<B><U><FONT size=2 face="serif">PROXY VOTING POLICY</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">For </FONT></B></P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT size=2 face="serif">BlackRock Advisors, Inc. <br>
and Its Affiliated Registered Investment Advisers</FONT></U></B></P>
<P>
<U><FONT size=2 face="serif">Introduction</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Proxy Voting Policy ("Policy") for BlackRock Advisors, Inc. and its affiliated registered investment advisers ("BlackRock") reflects our duty as a fiduciary under the Investment Advisers Act of
1940 (the &#147;Advisers Act&#148;) to vote proxies in the best interests of our clients. In addition, the Department of Labor views the fiduciary act of managing ERISA plan assets to include the voting of proxies. Proxy voting decisions must be
made solely in the best interests of the pension plan&#146;s participants and beneficiaries. The Department of Labor has interpreted this requirement as prohibiting a fiduciary from subordinating the retirement income interests of participants and
beneficiaries to unrelated objectives. The guidelines in this Policy have been formulated to ensure decision-making consistent with these fiduciary responsibilities. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Any general or specific proxy voting guidelines provided by an advisory client or its designated agent in writing will supercede the specific guidelines in this Policy. BlackRock will disclose to our
advisory clients information about this Policy as well as disclose to our clients how they may obtain information on how we voted their proxies. Additionally, BlackRock will maintain proxy voting records for our advisory clients consistent with the
Advisers Act. For those of our clients that are registered investment companies, BlackRock will disclose this Policy to the shareholders of such funds and make filings with the Securities and Exchange Commission and make available to fund
shareholders the specific proxy votes that we cast in shareholder meetings of issuers of portfolio securities in accordance with the rules and regulations under the Investment Company Act of 1940.</FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs, which may reduce or eliminate the amount of shares eligible for voting by
BlackRock in accordance with this Policy if such shares are out on loan and cannot be recalled in time for the vote. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Implicit in the initial decision to retain or invest in the security of a corporation is approval of its existing corporate ownership structure, its management, and its operations. Accordingly, proxy
proposals that would change the existing status of a corporation will be reviewed carefully and supported only when it seems clear that the proposed changes are likely to benefit the corporation and its shareholders. Notwithstanding this favorable
predisposition, management will be assessed on an ongoing basis both in terms of its business capability and its dedication to the shareholders to ensure that our continued confidence remains warranted. If it is determined that management is acting
on its own behalf instead of for the well being of the corporation, we will vote to support </FONT></P>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

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<p><A name="page_2"></A>
</p>
<p><FONT size=2 face="serif">shareholder proposals, unless other mitigating circumstances are present. </FONT> </p>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Additionally, situations may arise that involve an actual or perceived conflict of interest. For example, we may manage assets of a pension plan of a company whose management is soliciting proxies, or
a BlackRock employee involved with managing an account may have a close relative who serves as a director or executive of a company that is soliciting proxies regarding securities held in such account. In all cases, the manner in which we vote
proxies must be based on our clients&#146; best interests and not the product of a conflict.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Policy and its attendant recommendations attempt to generalize a complex subject. It should be clearly understood that specific fact situations, including differing voting practices in
jurisdictions outside the United States, might warrant departure from these guidelines. In such instances, the relevant facts will be considered, and if a vote contrary to these guidelines is indicated it will be cast and the reasons therefor
recorded in writing. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Section I of the Policy describes proxy proposals that may be characterized as routine and lists examples of the types of proposals we would typically support. Section II of the Policy describes
various types of non-routine proposals and provides general voting guidelines. These non-routine proposals are categorized as those involving: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="15%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">A.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="81%">
<FONT size=2 face="serif">Social Issues,</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">B.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">Financial/Corporate Issues, and</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">C.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">Shareholder Rights.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Finally, Section III of the Policy describes the procedures to be followed in casting a vote pursuant to these guidelines. </FONT></P>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

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<A name="page_3"></A>

<P align="center">
<FONT size=2 face="serif">SECTION I </FONT></P>
<P align="center">
<U><FONT size=2 face="serif">ROUTINE MATTERS</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Routine proxy proposals, amendments, or resolutions are typically proposed by management and meet the following criteria: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=right>&nbsp;</TD>
	<TD width=4% align=left>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD width=92% align=left>
<FONT size=2 face="serif">They do not measurably change the structure, management control, or operation of</FONT> <FONT size=2 face="serif">the corporation.</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;
</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">They are consistent with industry standards as well as the corporate laws of the state</FONT><FONT size=2 face="serif">of incorporation.</FONT>&nbsp; </TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD colspan="3" align=left>	<center>
    <U><FONT size=2 face="serif">Voting
  Recommendation</FONT></U>&nbsp;
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;
</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2" valign=top nowrap><FONT size=2 face="serif">BlackRock will normally support the following routine proposals:</FONT>&nbsp; </TD>
  </TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To increase authorized common shares.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To increase authorized preferred shares as long as there are not disproportionate voting rights per preferred share.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To elect or re-elect directors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To appoint or elect auditors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To approve indemnification of directors and limitation of directors&#146; liability.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To establish compensation levels.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To establish employee stock purchase or ownership plans.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To set time and location of annual meeting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

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<A name="page_4"></A>

<P align="center">
<FONT size=2 face="serif">SECTION II</FONT></P>
<P align="center">
<U><FONT size=2 face="serif">NON-ROUTINE PROPOSALS</FONT></U></P>
<P>
<FONT size=2 face="serif">A.&nbsp;&nbsp; </FONT><U><FONT size=2 face="serif">Social Issues</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proposals in this category involve issues of social conscience. They are typically proposed by shareholders who believe that the corporation&#146;s internally adopted policies are ill-advised or
misguided. </FONT></P>
<P align="center">
<U><FONT size=2 face="serif">Voting Recommendation</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If we have determined that management is generally socially responsible, we will generally vote </FONT><U><FONT size=2 face="serif">against</FONT></U><FONT size=2 face="serif"> the following shareholder proposals:
</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="4%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">To enforce restrictive energy policies.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To place arbitrary restrictions on military contracting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To bar or place arbitrary restrictions on trade with other countries.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To restrict the marketing of controversial products.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To limit corporate political activities.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To bar or restrict charitable contributions.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To enforce a general policy regarding human rights based on arbitrary parameters.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To enforce a general policy regarding employment practices based on arbitrary parameters.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">9.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To enforce a general policy regarding animal rights based on arbitrary parameters.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">10.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To place arbitrary restrictions on environmental practices.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">B.&nbsp;&nbsp; </FONT><U><FONT size=2 face="serif">Financial/Corporate Issues</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proposals in this category are usually offered by management and seek to change a corporation&#146;s legal, business or financial structure. </FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

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</p>
<p align="center"><U><FONT size=2 face="serif">Voting Recommendation</FONT></U></p>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We will generally vote in favor of the following management proposals provided the position of current shareholders is preserved or enhanced: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="4%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">To change the state of incorporation.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To approve mergers, acquisitions or dissolution.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To institute indenture changes.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To change capitalization.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">C.&nbsp;&nbsp; </FONT><U><FONT size=2 face="serif">Shareholder Rights</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proposals in this category are made regularly both by management and shareholders. They can be generalized as involving issues that transfer or realign board or shareholder voting power. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We typically would oppose any proposal aimed solely at thwarting potential takeover offers by requiring, for example, super-majority approval. At the same time, we believe stability and continuity
promote profitability. The guidelines in this area seek to find a middle road, and they are no more than guidelines. Individual proposals may have to be carefully assessed in the context of their particular circumstances. </FONT></P>
<P align="center">
<U><FONT size=2 face="serif">Voting Recommendation</FONT></U></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will generally vote </FONT><U><FONT size=2 face="serif">for</FONT></U><FONT size=2 face="serif"> the following management proposals:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="4%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">To require majority approval of shareholders in acquisitions of a controlling share in the corporation.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To institute staggered board of directors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require shareholder approval of not more than 66 2/3% for a proposed amendment to the corporation&#146;s by-laws.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To eliminate cumulative voting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To adopt anti-greenmail charter or by-law amendments or to otherwise restrict a company&#146;s ability to make greenmail payments.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

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<A name="page_6"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="4%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">To create a dividend reinvestment program.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To eliminate preemptive rights.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action (commonly known as a &#147;poison pill&#148;).</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2" valign=top nowrap><font size=2 face="serif">We will generally vote </font><u><font size=2 face="serif">against</font></u><font size=2 face="serif"> the following management proposals:</font></TD>
  </TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
	<TD nowrap valign=top> &nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">1.</font>&nbsp;</TD>
	<TD>
<FONT size=2 face="serif">To require greater than 66 2/3% shareholder approval for a proposed amendment to the corporation&#146;s by-laws (&#147;super-majority provisions&#148;).</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top> &nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">2.</font>&nbsp;</TD>
	<TD>
<FONT size=2 face="serif">To require that an arbitrary fair price be offered to all shareholders that is derived from a fixed formula (&#147;fair price amendments&#148;).</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top> &nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">3.</font>&nbsp;</TD>
	<TD>
<FONT size=2 face="serif">To authorize a new class of common stock or preferred stock which may have more votes per share than the existing common stock.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>&nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">4.</font>&nbsp; </TD>
	<TD>
<FONT size=2 face="serif">To prohibit replacement of existing members of the board of directors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top> &nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">5.</font>&nbsp;</TD>
	<TD>
<FONT size=2 face="serif">To eliminate shareholder action by written consent without a shareholder meeting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>&nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">6.</font>&nbsp; </TD>
	<TD>
<FONT size=2 face="serif">To allow only the board of directors to call a shareholder meeting or to propose amendments to the articles of incorporation.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top> &nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">7.</font>&nbsp;</TD>
	<TD>
<FONT size=2 face="serif">To implement any other action or procedure designed primarily to discourage a takeover or other similar action (commonly known as a &#147;poison pill&#148;).</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>&nbsp; &nbsp; 	</TD>
	<TD><font size=2 face="serif">8.</font>&nbsp; </TD>
	<TD>
<FONT size=2 face="serif">To limit the ability of shareholders to nominate directors.</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2"><font size=2 face="serif">We will generally vote </font><u><font size=2 face="serif">for</font></u><font size=2 face="serif"> the following shareholder proposals:</font></TD>
  </TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To rescind share purchases rights or require that they be submitted for shareholder approval, but only if the vote required for approval is not more than 66 2/3%.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To opt out of state anti-takeover laws deemed to be detrimental to the shareholder.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To change the state of incorporation for companies operating under the umbrella of anti-shareholder state corporation laws if another state is chosen with favorable laws in this and other areas.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

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<A name="page_7"></A>

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="45" valign=top nowrap>&nbsp;</TD>
	<TD width="43" valign=top nowrap>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width="998">
<FONT size=2 face="serif">To permit shareholders to participate in formulating management&#146;s proxy and the opportunity to discuss and evaluate management&#146;s director nominees, and/or to nominate shareholder nominees to the board.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require that the board&#146;s audit, compensation, and/or nominating committees be comprised exclusively of independent directors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To adopt anti-greenmail charter or by-law amendments or otherwise restrict a company&#146;s ability to make greenmail payments.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To create a dividend reinvestment program.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">9.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To recommend that votes to &#147;abstain&#148; not be considered votes &#147;cast&#148; at an annual meeting or special meeting, unless required by state law.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">10.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require that &#147;golden parachutes&#148; be submitted for shareholder ratification.</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2" valign=top nowrap><font size=2 face="serif">We will generally vote </font><u><font size=2 face="serif">against</font></u><font size=2 face="serif"> the following shareholder proposals:</font></TD>
  </TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To restore preemptive rights.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To restore cumulative voting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require annual election of directors or to specify tenure.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To eliminate a staggered board of directors.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require confidential voting.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To require directors to own a minimum amount of company stock in order to qualify as a director or to remain on the board.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="serif">To dock director pay for failing to attend board meetings.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

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<A name="page_8"></A>

<P align="center">
<FONT size=2 face="serif">SECTION III </FONT></P>
<P align="center">
<U><FONT size=2 face="serif">VOTING PROCESS</FONT></U></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>BlackRock has engaged a third-party service provider to assist us in the voting of proxies. These guidelines have been provided to this service provider, who then analyzes all proxy solicitations we receive for our clients and
makes recommendations to us as to how, based upon our guidelines, the relevant votes should be cast. These recommendations are set out in a report that is provided to the relevant Portfolio Management Group team, who must approve the proxy vote in
writing and return such written approval to the Operations Group. If any authorized member of a Portfolio Management Group team desires to vote in a manner that differs from the recommendations, the reason for such differing vote shall be noted in
the written approval form. A copy of the written approval form is attached as an exhibit. The head of each relevant Portfolio Management Group team is responsible for making sure that proxies are voted in a timely manner. The Brokerage Allocation
Committee shall receive regular reports of all proxy votes cast to review how proxies have been voted, including reviewing votes that differ from recommendations made by our third-party service provider and votes that may have involved a potential
conflict of interest. The Committee shall also review these guidelines from time to time to determine their continued appropriateness and whether any changes to the guidelines or the proxy voting process should be made. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>IF THERE IS ANY POSSIBILITY THAT THE VOTE MAY INVOLVE A MATERIAL CONFLICT OF INTEREST BECAUSE, FOR EXAMPLE, THE ISSUER SOLICITING THE VOTE IS A BLACKROCK CLIENT OR THE MATTER BEING VOTED ON INVOLVES BLACKROCK, PNC OR ANY
AFFILIATE (INCLUDING A PORTFOLIO MANAGEMENT GROUP EMPLOYEE) OF EITHER OF THEM, PRIOR TO APPROVING SUCH VOTE, THE BROKERAGE ALLOCATION COMMITTEE MUST BE CONSULTED AND THE MATTER DISCUSSED. The Committee, in consultation with the Legal and Compliance
Department, shall determine whether the potential conflict is material and if so, the appropriate method to resolve such conflict, based on the particular facts and circumstances, the importance of the proxy issue, whether the Portfolio Management
Group team is proposing a vote that differs from recommendations made by our third-party service provider with respect to the issue and the nature of the conflict, so as to ensure that the voting of the proxy is not affected by the potential
conflict.  If the conflict is determined not to be material, the relevant Portfolio Management Group team shall vote the proxy in accordance with this Policy. Determinations of the Committee with respect to votes involving material conflicts of
interest shall be documented in writing and maintained for a period of at least six years. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such
meeting. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>With respect to voting proxies of non-U.S. companies, a number of logistical problems may arise that may have a detrimental effect on BlackRock&#146;s ability to vote such proxies in the best interests of our clients.  These
problems include, but are not limited to, (i) untimely and/or</FONT></P>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

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<A name="page_9"></A>

<P>
<FONT size=2 face="serif"> inadequate notice of shareholder meetings, (ii) restrictions on the ability of holders outside the issuer's jurisdiction of organization to exercise votes, (iii) requirements to vote proxies in person, if not practicable, (iv) the imposition of restrictions on the sale of the securities for a period of time in proximity to the
shareholder meeting, and (v) impracticable or inappropriate requirements to provide local agents with power of attorney to facilitate the voting instructions. Accordingly, BlackRock may determine not to vote proxies if it believes that the
restrictions or other detriments associated with such vote outweigh the benefits that will be derived by voting on the company's proposal. </FONT></P>
<P align="center">
<FONT size=2 face="serif">   </FONT><B><FONT size=2 face="serif">*&nbsp; *&nbsp; *&nbsp; *&nbsp; *</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>Any questions regarding this Policy may be directed to the General Counsel of BlackRock.</FONT></P>
<P>
<FONT size=2 face="serif">Approved: &nbsp;October 21, 1998</FONT></P>
<P>
<FONT size=2 face="serif">Revised: &nbsp;May 27, 2003 </FONT></P>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
