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<SEC-DOCUMENT>0000930413-06-006584.txt : 20060907
<SEC-HEADER>0000930413-06-006584.hdr.sgml : 20060907
<ACCEPTANCE-DATETIME>20060907100347
ACCESSION NUMBER:		0000930413-06-006584
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20060630
FILED AS OF DATE:		20060907
DATE AS OF CHANGE:		20060907
EFFECTIVENESS DATE:		20060907

FILER:

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

	FILING VALUES:
		FORM TYPE:		N-CSRS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21566
		FILM NUMBER:		061078232

	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-CSRS
<SEQUENCE>1
<FILENAME>c43343_ncsrs.htm
<TEXT>

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<center>
  <FONT face="serif">UNITED STATES </FONT><BR>
  <FONT face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
  <FONT face="serif">Washington, D.C. 20549 </FONT>
</center>
<P align="center">
<B><FONT size=4 face="serif">FORM N-CSR </FONT></B></P>
<center>
  <B><FONT face="serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED </FONT></B><BR>
  <B><FONT face="serif">MANAGEMENT INVESTMENT COMPANIES </FONT></B>
</center>
<P>
<FONT face="serif">Investment Company Act file number:_____811-21566________________________<BR> </FONT></P>
<center>
  <FONT face="serif">____BlackRock Global Floating Rate Income Trust____ </FONT><BR>
  <FONT face="serif">(Exact name of registrant as specified in charter) </FONT><BR>
</center>
<P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=64% align=center><div style="border-bottom:1px solid #000000"> <font face="serif">100
    Bellevue Parkway, Wilmington, DE</font>&nbsp; </div></TD>
        <TD width=36% align=center><div style="border-bottom:1px solid #000000"> <font face="serif">19809</font>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT face="serif">(Address of principal executive offices)</FONT>&nbsp;
          </center></TD>
        <TD align=right>
      <center>
        <FONT face="serif">(Zip code)</FONT>&nbsp;
          </center></TD>
</TR>
</TABLE>
<center>
  <div style="border-bottom:1px solid #000000"><br>
      <font face="serif">Robert S. Kapito, President </font><br>
      <font face="sans-serif">BlackRock Global Floating Rate Income Trust </font> <br>
      <font face="serif">40 East 52nd Street, New York, NY 10022 </font></div>
</center>
  <div align=center><FONT face="serif">(Name
      and address of agent for service) </FONT>
</div>

<P>
<FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">888-825-2257</FONT></U><FONT face="serif">_____________ </FONT></P>
<P>
<FONT face="serif">Date of fiscal year end:___</FONT><U><FONT face="serif">December 31, 2006</FONT></U><FONT face="serif">__________________________________ </FONT></P>
<P>
<FONT face="serif">Date of reporting period:__</FONT><U><FONT face="serif"> June 30, 2006</FONT></U><FONT face="serif">_________________________________</FONT></P>

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

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


<P>
<B><FONT face="serif">Item 1. Reports to Stockholders.</FONT></B><br>
</P>


<P align="justify"><FONT size=1 face="sans-serif">FIXED INCOME&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LIQUIDITY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EQUITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALTERNATIVES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACKROCK SOLUTIONS</FONT></P>
<hr align="left" width="550" size="1" noshade>
<P align="justify"><FONT size=5 face="sans-serif">BlackRock</FONT><BR>
    <FONT size=5 face="sans-serif">Closed-End Funds</FONT><BR>
    <FONT size=5 face="sans-serif">Semi-Annual Report</FONT><BR>
    <br>
    <FONT size=2 face="sans-serif">JUNE 30, 2006 (UNAUDITED)</FONT></P>
<hr align="left" width="550" size="6" noshade>
<P align="justify">&nbsp;</P>
<P align="justify"><FONT size=2 face="sans-serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT><BR>
  <BR>
  <FONT size=2 face="sans-serif">BlackRock High Income Shares (HIS)</FONT><BR>
  <BR>
  <FONT size=2 face="sans-serif">BlackRock Preferred Opportunity Trust (BPP)</FONT></P>
<hr align="left" width="550" size="1" noshade>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P align="justify">&nbsp; </P>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="right"><IMG src="c43343_n-csrx1x1.jpg" border=0></p>
<P align="justify">
<FONT size=1 face="sans-serif">NOT FDIC INSURED<BR>
MAY LOSE VALUE<BR>
NO BANK GUARANTEE</FONT></P>
<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


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

	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Portfolios of Investments</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">5</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">31</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">32</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Cash Flows</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">33</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">34</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Financial Highlights</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">36</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Notes to Financial Statements</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">39</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Board Review of Investment Management Agreements</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">45</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Dividend Reinvestment Plans</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">49</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Additional Information</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">50</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Section 19 Notices</FONT>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">51</FONT>&nbsp;
	</TD>
  </TR>
</TABLE>
<BR>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <P align="center"><B><FONT size=2 face="serif">Privacy Principles of the Trusts</FONT></B></P>
    <P align="justify"> &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 align="justify"> &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 align="justify"> &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>
  </center>
</div>
<P align="left">&nbsp;</P>
<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LETTER TO SHAREHOLDERS</FONT></B></P>
<P align="right">
<FONT size=2 face="serif">June 30, 2006</FONT></P>
<P align="justify">
<FONT size=2 face="serif">Dear Shareholder:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that during the semi-annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the
Trusts&#146; unaudited as of and for the six months ended June 30, 2006 and audited financial statements for prior periods as well as a listing of the portfolios&#146; holdings.</FONT></P>
<P align="justify">
&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 align="justify">
&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 June 30, 2006.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=61% align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Trust (Ticker)</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<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 nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Market Price</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">NAV</FONT></B>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Global Floating Rate Income Trust (BGT)</FONT>&nbsp;
	</TD>
	<TD width=6% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.91</FONT>
	</TD>
	<TD width=4% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD width=10% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.96</FONT>&nbsp;
	</TD>
	<TD width=6% align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD width=8% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.05</FONT>&nbsp;
	</TD>
    <TD width=5% align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock High Income Shares (HIS)</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9.32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.64</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.55</FONT>&nbsp;
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">BlackRock
    Preferred Opportunity Trust (BPP)</font>&nbsp; </div></TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">8.09</font> </div></TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">24.72</font>&nbsp; </div></TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">23.60</font>&nbsp; </div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
</TR>
</TABLE>
<P align="justify">
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Yield is based on closing market price. Past performance does not guarantee future results. These yields may increase/decrease due to an increase/decrease in the monthly
distribution per share.</FONT></P>
<P align="justify">
&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 June 30, 2006, BlackRock managed &#36;305 billion
in fixed income securities, including 20 open-end and 48 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., which manage the Trusts, are wholly owned subsidiaries of BlackRock.</FONT></P>
<P align="justify">
&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>
<P align="justify">
<FONT size=2 face="serif">Sincerely,</FONT></P>

<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap><IMG src="pg1x3x1.jpg" border=0></TD>
  <TD align=left nowrap><IMG src="pg1x3x2.jpg" border=0></TD>
</TR>
<TR valign="bottom">
	<TD width=50% align=left nowrap>
<FONT size=2 face="serif">Laurence D. Fink</FONT>&nbsp;
	</TD>
	<TD width=50% align=left nowrap>
<FONT size=2 face="serif">Ralph L. Schlosstein</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">Chief Executive Officer</FONT>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">President</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
	</TD>
	<TD align=left nowrap>
<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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">JUNE 30, 2006 </FONT></B></P>
<P align="justify">
<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>
<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BGT</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">August 30, 2004</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD width=13% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.96</FONT>
	</TD>
	<TD width=10% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.05</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 6/30/06 (&#36;18.96):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.91</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.125</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;1.500</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 6/30/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>

<P align="justify">
<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. Past performance does not guarantee future
results.</FONT></P>
<P align="justify">
<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 align="justify">
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P align="justify">
<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 width="30%" align=left nowrap style="border-bottom:1px solid #000000;"></TD>
  <TD width="14%" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width="14%" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width="13%" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width="13%" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">6/30/06</FONT></B>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">12/31/05</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">High</FONT></B>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.96</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;17.16</FONT>&nbsp;
	</TD>
	<TD width="9%" align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10.49</FONT>
	</TD>
	<TD width="7%" align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.97</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;17.12</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.05</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.13</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.42</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.38</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;19.01</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<P align="justify">
<FONT size=2 face="serif">The following charts show 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 valign="bottom">
  <TD width=61% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Composition</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Foreign Government Bonds</FONT>&nbsp;
	</TD>
	<TD width=10% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Consumer Products</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Media</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Financial Institutions</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Energy</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Basic Materials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Telecommunications</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Health Care</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Entertainment &amp; Leisure</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Conglomerates</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Technology</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Containers &amp; Packaging</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Automotive</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Building &amp; Development</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Real Estate</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Aerospace &amp; Defense</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Ecological Services &amp; Equipment</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>

<P align="center">
<B><FONT size=2 face="serif">Corporate Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="5" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD width="61%" align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD width=10% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">48</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">54</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>

<p align="left"><font size=1 face="serif"><sup>3</sup></font>
  <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. Corporate bonds represented approximately 21.5%
and 20.5% of net assets on June 30, 2006 and December 31, 2005, respectively.</FONT></p>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">JUNE 30, 2006 </FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS)</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 valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">HIS</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">August 10, 1988</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD width=13% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.64</FONT>
	</TD>
	<TD width=10% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.55</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 6/30/06 (&#36;2.64):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9.32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0205</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.2460</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 6/30/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">31</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>

<P align="justify">
<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. Past performance does not guarantee future
results.</FONT></P>
<P align="left">
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">A change in the distribution rate was declared on August 15, 2006. The Monthly Distribution per Share was decreased to &#36;0.0182. The Yield on Closing Market Price, Current
Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. The distribution rate is not constant and
is subject to further change.</FONT></P>
<P align="justify">
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P align="justify">
<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 valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=32% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">6/30/06</FONT></B>&nbsp;
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">12/31/05</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">High</FONT></B>&nbsp;
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.64</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.33</FONT>&nbsp;
	</TD>
	<TD width=9% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.30</FONT>
	</TD>
	<TD width=7% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;2.74</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;2.33</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.55</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.61</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2.30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;2.66</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;2.54</FONT>&nbsp;
	</TD>
</TR>
</TABLE>

<P align="justify">
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s corporate bond investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Corporate Portfolio Composition</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=61% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Composition</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Energy</FONT>&nbsp;
	</TD>
	<TD width=10% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Telecommunications</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Media</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Basic Materials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Financial Institutions</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Technology</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Consumer Products</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Containers &amp; Packaging</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Health Care</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Aerospace &amp; Defense</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Entertainment &amp; Leisure</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Building &amp; Development</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Automotive</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Ecological Services &amp; Equipment</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>

<P align="center">
<B><FONT size=2 face="serif">Corporate Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B></P>
<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=61% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD width=10% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Ba/BB</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B/B</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">62</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">61</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>

<P align="justify">
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P, Moody&#146;s or Fitch rating. Corporate bonds represented approximately 138.3% and 141.8% of net assets on June 30, 2006 and December 31, 2005,
respectively.</FONT></P>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">JUNE 30, 2006 </FONT></B></P>
<P align="justify">
<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 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=76% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">BPP</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">February 28, 2003</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;24.72</FONT>
	</TD>
	<TD width=10% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 6/30/06:</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;23.60</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 6/30/06 (&#36;24.72):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.09</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.166667</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;2.000004</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 6/30/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">34</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<P align="justify">
<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. Past performance does not guarantee future
results.</FONT></P>
<P align="justify">
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.</FONT></P>
<P align="justify">
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P align="justify">
<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 valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=32% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">6/30/06</FONT></B>&nbsp;
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">12/31/05</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=2 face="serif">High</FONT></B>&nbsp;
	</TD>
	<TD width=13% align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;24.72</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;24.20</FONT>&nbsp;
	</TD>
	<TD width=9% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.15</FONT>
	</TD>
	<TD width=7% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;25.38</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;24.20</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;23.60</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;24.43</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3.40</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">24.79</FONT>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">23.43</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<P align="justify">
<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 valign="bottom">
  <TD width=61% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width=11% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Composition</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Financial Institutions</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">72</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">72</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Real Estate</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Energy</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Media</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Automotive</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Basic Materials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Consumer Products</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Technology</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Telecommunications</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Building &amp; Development</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrials</FONT>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT><sup><font size=2 face="serif">3</font></sup></B></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td width=61% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</td>
    <td width=10% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</td>
    <td width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</td>
    <td width=11% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</td>
    <td width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <b><font size=2 face="serif">Credit Rating</font></b>&nbsp; </td>
    <td colspan="2" align=center nowrap style="border-bottom:1px solid #000000;"> <b><font size=2 face="serif">June 30, 2006</font></b>  </td>
    <td colspan="2" align=center nowrap style="border-bottom:1px solid #000000;"> <b><font size=2 face="serif">December 31, 2005</font></b>  </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">AA/Aa</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">18</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">13</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">%</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">A</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">36</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">39</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">BBB/Baa</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">29</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">29</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">BB/Ba</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">9</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">11</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">B</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">6</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">7</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">CCC/Caa</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">&#151;</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">1</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">Not Rated</font>&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">2</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
    <td align=right nowrap style="border-bottom:1px solid #000000;"> <font size=2 face="serif">&#151;</font> </td>
    <td align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </td>
  </tr>
</table>
<P align="justify"><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P, Moody&#146;s or Fitch rating. </FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">JUNE 30, 2006</FONT></B></P>
<P align="justify">
<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 align="center" valign="bottom">
	<TD width=5% nowrap>&nbsp;

	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=73% nowrap>&nbsp;

	</TD>
	<TD width=7%>&nbsp;
	</TD>
	<TD width=6% nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD nowrap>&nbsp;

	</TD>
</TR>
<TR align="center" valign="bottom">
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;164.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Corporate Bonds&#151;22.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;0.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp; &nbsp; 671</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">DI Finance/DynCorp. Intl., 9.50%, 2/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 697,840</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Automotive&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Autonation, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 4/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">59,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.045%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">150</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">149,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">775</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Delco Remy Intl., Inc., 9.068%, 4/15/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">759,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">250</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lear Corp., 8.11%, 5/15/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">242,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">220</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Metaldyne Corp., 10.00%, 11/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">212,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Automotive</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,493,650</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;1.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Abitibi-Consolidated, Inc., 6.51%, 6/15/11 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">975,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">970</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AK Steel Corp., 7.75%, 6/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">955,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">260</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Boise Cascade LLC, 6.474%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">258,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,040</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,4</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Bowater, Inc., 7.91%, 3/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,055,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chemtura Corp., 6.875%, 6/01/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,662</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">20</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Domtar, Inc., 7.125%, 8/15/15 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">17,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Donohue Forest Products, 7.625%, 5/15/07 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hercules, Inc., 6.75%, 10/15/29</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">708,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ineos Group Holdings PLC (United Kingdom),</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">225</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">(EUR), 7.875%, 2/07/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">269,080</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">430</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.50%, 2/15/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">405,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lyondell Chemical Co.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.125%, 7/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">326,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 9.625%, 5/01/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">306,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">565</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nalco Co., 8.875%, 11/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">567,119</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">NewPage Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">55</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.00%, 5/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">56,925</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.399%, 5/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,636,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">50</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">PQ Corp., 7.50%, 2/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">47,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Basic Materials</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,665,611</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Building &amp; Development&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ainsworth Lumber Co. Ltd., 6.84%, 10/01/10 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">960,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">90</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Compression Polymers Corp., 10.50%, 7/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">91,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">195</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Goodman Global Holding Co., Inc., 7.875%, 12/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">188,663</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Building &amp; Development</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,240,013</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;1.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">45</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">ALH Finance LLC, 8.50%, 1/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">43,369</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">700</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ames True Temper, Inc., 9.068%, 1/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">687,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">400</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cenveo Corp., 7.875%, 12/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">390,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,050</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Duane Reade, Inc., 7.91%, 12/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,023,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">75</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Finlay Fine Jewelry Corp., 8.375%, 6/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">65,062</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Gold Kist, Inc., 10.25%, 3/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">41,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">505</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Knowledge Learning Corp., Inc., 7.75%, 2/01/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">462,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">400</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lazydays RV Center, Inc., 11.75%, 5/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">378,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">180</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Levi Strauss &amp; Co., 7.73%, 4/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">182,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">30</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nutro Products, Inc., 9.23%, 10/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">30,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">80</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Quebecor World, Inc., 8.75%, 3/15/16 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">72,746</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Reynolds American, Inc., 7.625%, 6/01/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,952,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">135</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rite Aid Corp., 6.125%, 12/15/08</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">131,456</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Consumer Products</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,461,771</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Containers &amp; Packaging&#151;0.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">50</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Packaging Dynamics Finance Corp., 10.00%, 5/01/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">50,000</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=5% nowrap>&nbsp;

	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=73% nowrap>&nbsp;

	</TD>
	<TD width=7%>&nbsp;
	</TD>
	<TD width=6% nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD nowrap>&nbsp;

	</TD>
</TR>
<TR align="center" valign="bottom">
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Containers &amp; Packaging&#151;(cont&#146;d)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 250</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp; &nbsp; &nbsp; 257,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Containers &amp; Packaging</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">307,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;0.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">625</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Allied Waste NA, Inc., 5.75%, 2/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">581,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;7.8%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AES Corp., 9.00%, 5/15/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">806,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">ANR Pipeline Co., 9.625%, 11/01/21</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">150,475</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">35</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chaparral Energy, Inc., 8.50%, 12/01/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">34,738</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">68,425</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">375</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">El Paso Production Holding Co., 7.75%, 6/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">378,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">505</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Foundation Pennsylvania Coal Co., 7.25%, 8/01/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">493,006</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14,430</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Gazprom OAO, 9.625%, 3/01/13 (Germany)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">16,492,047</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Grant Prideco, Inc., 6.125%, 8/15/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">36,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">730</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">KCS Energy, Inc., 7.125%, 4/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">688,025</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pemex Project Funding Master Trust,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">800</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.375%, 12/02/08</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">858,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,700</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 15, 3.87%, 10/15/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">13,144,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Reliant Energy, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">180</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 12/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">166,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 7/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Whiting Petroleum Corp., 7.25%, 5/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">288,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">590</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Williams Cos., Inc., 8.75%, 3/15/32</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">646,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">35,001,916</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;0.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">155</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Greektown Holdings LLC, 10.75%, 12/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">162,944</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pokagon Gaming Authority, 10.375%, 6/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">62,025</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Poster Financial Group, Inc., 8.75%, 12/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25,937</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">San Pasqual Casino, 8.00%, 9/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">20</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">19,025</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Entertainment &amp; Leisure</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">310,031</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;4.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">92</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AES Ironwood LLC, 8.857%, 11/30/25</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">99,936</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Alrosa Finance Ltd., 8.125%, 5/06/08 (Luxembourg)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,047,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">140</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">134,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">630</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Crum &amp; Forster Holdings Corp., 10.375%, 6/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">641,025</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">60</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ford Motor Credit Co., 7.25%, 10/25/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">53,222</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">General Motors Acceptance Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,000 </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">3.56%, 1/16/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,992,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.875%, 8/28/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">190,368</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,455</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Kazkommerts Intl. BV, 8.50%, 4/16/13 (Netherlands)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,594,648</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Kazkommertsbank Intl. BV, 8.50%, 4/16/13 (Netherlands)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,067,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Marsh &amp; McLennan Cos., Inc., 2.193%, 7/13/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">24,978</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rainbow National Services LLC, 8.75%, 9/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">787,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Sberbank, 6.875%, 10/24/06 (Russia)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,006,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">300</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Universal City Florida Holding Co. I/II, 7.96%, 5/01/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">307,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,947,627</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Health Care&#151;0.7%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">280</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">269,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,115</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Healthsouth Corp., 11.418%, 6/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,083,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Select Medical Corp., 7.625%, 2/01/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">21,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">325</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tenet Healthcare Corp., 6.875%, 11/15/31</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">259,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">630</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Universal Hospital Services, Inc., 10.125%, 11/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">653,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Health Care</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,287,213</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;0.4%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">80</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">NationsRent Cos., Inc., 9.50%, 5/01/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">85,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">325</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Park-Ohio Industries, Inc., 8.375%, 11/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">286,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">210</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Sunstate Equipment Co. LLC, 10.50%, 4/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">216,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">445</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Trimas Corp., 9.875%, 6/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">404,950</FONT>&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">6</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=5% nowrap>&nbsp;

	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=73% nowrap>&nbsp;

	</TD>
	<TD width=7%>&nbsp;
	</TD>
	<TD width=6% nowrap>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD nowrap>&nbsp;

	</TD>
</TR>
<TR align="center" valign="bottom">
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;(cont&#146;d)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">&#36; 825</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">United Rentals NA, Inc., 7.00%, 2/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; 754,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Industrials</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,747,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;0.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">50</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Affinion Group, Inc., 10.125%, 10/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">50,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">100</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cablevision Systems Corp., 8.716%, 4/01/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">106,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">680</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 9/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">681,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">45</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 9/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">45,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Echostar DBS Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">300 </FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.125%, 2/01/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">286,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.375%, 10/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">717,187</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Emmis Operating Co., 6.875%, 5/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">98,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">80</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Medianews Group, Inc., 6.875%, 10/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">73,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">80</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Network Communications, Inc., 10.75%, 12/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">78,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">70</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nexstar Finance, Inc., 7.00%, 1/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">63,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">350</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Paxson Communications Corp., 8.318%, 1/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">352,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">R.H. Donnelley, Inc., 8.875%, 1/15/16</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">245,938</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">100</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Unity Media GmbH, 10.375%, 2/15/15 (Germany)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">99,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Media</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,898,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Real Estate&#151;1.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6,350</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rouse Co., 5.375%, 11/26/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,717,047</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;0.7%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Freescale Semiconductor, Inc., 5.891%, 7/15/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,530,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">965</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co., 6.66%, 12/15/11 (Luxembourg)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">916,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">50</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Sensata Technologies BV, 8.00%, 5/01/14 (Netherlands)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">48,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">,3</font></sup>
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Sungard Data Systems, Inc., 4.50%, 8/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">263,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">140</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">142,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Technology</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,901,575</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Telecommunications&#151;2.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">810</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cincinnati Bell, Inc., 7.25%, 7/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">795,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">350</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Dobson Cellular Systems, Inc., 8.375%, 11/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">359,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">115</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">117,013</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Intelsat Ltd. (Bermuda),</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">75</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 11/01/08</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">50</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.25%, 1/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">49,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">200</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.625%, 1/15/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">201,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">485</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.609%, 1/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">491,062</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nordic Telephone Co. Holding ApS (EUR), 8.352%, 5/03/16 (Denmark)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,991,194</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,350</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Qwest Communications Intl., Inc., 6.768%, 2/15/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,397,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Qwest Corp., 7.741%, 6/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,662,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">400</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rogers Wireless Communications, Inc., 5.525%, 12/15/10 (Canada)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">412,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">150</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">157,687</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Telecommunications</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,705,531</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Transportation&#151;0.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">30</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hertz Corp., 8.875%, 1/01/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">30,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">315</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Horizon Lines LLC, 9.00%, 11/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">319,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Transportation</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">350,475</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">98,314,488</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Bank Loans&#151;117.4%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;1.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,948</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Caci Intl., Inc., LIBOR + 1.50%, 2/04/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,945,526</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">896</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Camp Acquisition Co., Loan A, LIBOR + 3.25%, 8/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">896,367</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">988</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">DI Finance/Dyncorp Intl., Loan B, LIBOR + 2.75%, 1/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">987,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">MRO Acquisition LLC, LIBOR + 5.25%, 9/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,005,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">313</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Primus Intl., Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 6/16/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">313,281</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">188</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">0.50%, 6/16/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">187,969</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">826</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Standard Aero Holdings, Inc., LIBOR + 2.25%, 8/18/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">823,629</FONT>&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 align="center" width="100%" size=4>
<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=5% align=center nowrap>&nbsp;</TD>
  <TD width=2% align=center nowrap>&nbsp;</TD>
	<TD width=5% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2% align="center">&nbsp;
	</TD>
	<TD width=73% align=center nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
 <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;(cont&#146;d)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 493</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">U.S. Investigations Services LLC, Loan B, LIBOR + 2.50%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; 492,066</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Aerospace &amp; Defense</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,651,338</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Automotive&#151;3.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Dana Corp., LIBOR + 2.25%, 4/12/08</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">999,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Goodyear Tire &amp; Rubber Co.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.75%, 4/01/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">501,562</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.50%, 4/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,008,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">GPX Intl. Tire Corp., LIBOR + 2.50%, 3/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,005,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">748</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">IAP Worldwide Services, Inc., LIBOR + 3.00%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">749,060</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">499</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Keystone Automotive, Inc., Loan C, LIBOR + 2.50%, 11/30/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498,127</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lear Corp., LIBOR + 2.50%, 3/23/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">991,042</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">926</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Metaldyne Corp., Loan D, LIBOR + 4.50%, 12/31/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">937,159</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Precision Parts Intl., Loan B, LIBOR + 3.75%, 10/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">496,256</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,246</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Progressive Moulded Products Ltd., Loan B, LIBOR + 4.50%, 8/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,107,318</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,993</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">TI Group Automotive Systems, Loan C, LIBOR + 3.25%, 6/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,948,303</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">TRW Automotive Acquisitions Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">491</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 1.50%, 6/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">490,183</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,469</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan E, LIBOR + 1.50%, 10/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,464,430</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Automotive</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">14,195,815</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;12.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,522</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Appleton Papers, Inc., LIBOR + 2.25%, 6/30/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,531,007</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Basell NV,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">417</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 2.50%, 9/30/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">421,701</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">83</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B4, LIBOR + 2.50%, 8/01/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">84,340</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">83</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C4, LIBOR + 3.00%, 8/01/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">84,340</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">417</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C2, LIBOR + 3.00%, 9/30/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">421,701</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">968</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Berry Plastics Corp., LIBOR + 1.75%, 7/22/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">965,932</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,654</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,655,828</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Brenntag Group,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,607</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 2.50%, 12/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,617,318</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">393</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 1/18/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">395,673</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 6.50%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,007,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">789</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Buckeye Technologies, Inc., LIBOR + 2.00%, 4/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">786,736</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,579</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Celanese AG, LIBOR + 2.00%, 6/03/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,584,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cognis Deutschland, Loan B, LIBOR + 4.75%, 11/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,035,834</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">938</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Compass Minerals Group, Inc., LIBOR + 1.50%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">938,658</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,426</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Foundation Coal Corp., Loan B, LIBOR + 1.75%, 7/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,425,277</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">985</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hercules, Inc., Loan B, LIBOR + 1.50%, 4/07/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">985,171</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,023</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Huntsman Intl. LLC, Loan B, LIBOR + 1.75%, 8/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,984,184</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ineos Group Holdings PLC,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan A4, LIBOR + 2.25%, 12/16/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,256,187</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 2.25%, 12/16/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,758,696</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C2, LIBOR + 2.75%, 12/16/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,760,063</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,444</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Innophos, Inc., LIBOR, 8/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,445,789</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Invista BV,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,470</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 1.50%, 4/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,469,391</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,256</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 1.50%, 4/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,255,794</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,998,214</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">John Maneely Co., Loan B, LIBOR + 3.00%, 3/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">754,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">220</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Kraton Polymers LLC, LIBOR + 2.00%, 12/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">218,892</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,777</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nalco Co., Loan B, LIBOR + 1.75%, 11/04/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,768,112</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">495</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">PQ Corp., LIBOR + 2.00%, 2/28/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">495,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">499</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pregis Corp., Loan B2, LIBOR + 2.50%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">644,306</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Professional Paint, Inc., LIBOR + 2.25%, 5/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">501,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,833</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rockwood Specialties Group, Inc., Loan E, LIBOR + 2.00%, 8/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,835,869</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% nowrap>&nbsp;</TD>
	<TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=73% nowrap>&nbsp;

	</TD>
	<TD width=7%>&nbsp;
	</TD>
	<TD width=6% nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD nowrap>&nbsp;

	</TD>
</TR>
<TR align="center" valign="bottom">
  <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;(cont&#146;d)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">UPC Distribution Corp. (EUR),</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan J, LIBOR, 3/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp; &nbsp; 1,275,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan K, LIBOR, 12/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,276,237</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Basic Materials</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">54,639,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Building &amp; Development&#151;2.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Contech Construction Products, Inc., LIBOR + 2.00%, 2/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500,313</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Custom Building Products, Inc., LIBOR + 5.00%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,504,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Euramax Intl., Inc., LIBOR + 7.00%, 7/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">502,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Harmon Koval, 3.25%, 12/31/06</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,250,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Landsource Communities Development LLC, Loan B, LIBOR + 2.50%, 3/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,002,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nacco Industries, Inc., LIBOR + 2.00%, 3/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">982</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Nortek, Inc., Loan B, LIBOR + 2.00%, 8/24/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">980,571</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Ply Gem Industries, Inc., LIBOR + 2.25%, 8/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,745,624</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">650</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pro Build Holdings, TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">649,594</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">950</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rhodes Ranch, LIBOR + 3.25%, 11/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">950,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,494</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">United Subcontractors, Inc., LIBOR + 3.00%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,487,516</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Building &amp; Development</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,071,743</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Business Equipment &amp; Services&#151;0.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">988</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Latham Intl., PRIME + 2.75%, 12/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">987,510</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Conglomerates&#151;6.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AGY Holding Corp., LIBOR + 2.75%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">502,187</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Atlantis Plastics, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">990</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.75%, 9/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">991,237</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 7.25%, 9/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">753,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,496</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Blount Intl., Loan B, LIBOR + 1.75%, 8/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,507,472</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,988</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Colfax Intl., (EUR), LIBOR + 2.25%, 11/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,387,238</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,710</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Fidelity National Information Solutions, Inc., Loan B, LIBOR + 1.75%, 3/30/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,708,166</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">419</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Gentek, Inc., LIBOR + 4.25%, 3/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">421,527</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,439</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Honeywell Security, Loan B, PRIME + 2.00%, 6/28/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,438,807</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Invensys Intl. Holdings Ltd.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">275</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 3.50%, 8/30/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">272,816</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,727</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR, 3/05/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,679,687</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 4.75%, 11/30/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,020,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Jarden Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 1.75%, 1/24/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">495,438</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">478</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B3, LIBOR + 1.75%, 1/24/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">475,296</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,496</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.00%, 1/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,495,113</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">461</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lionbridge Technologies, Inc., LIBOR + 3.50%, 9/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">463,648</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">760</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mueller Group, Inc., Loan B, LIBOR + 2.25%, 9/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">762,747</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">367</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Penn Engineering &amp; Manufacturing, LIBOR + 2.25%, 4/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">371,211</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,439</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Polypore, Inc., LIBOR + 3.00%, 11/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,455,213</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">670</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Rexnord Corp., LIBOR + 2.25%, 10/31/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">672,017</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Conglomerates</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">26,873,570</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;16.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Aearo Technologies, Inc., LIBOR + 6.50%, 9/30/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,016,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,001</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">24 Hour Fitness Worldwide, Inc., Loan B, LIBOR + 2.50%, 6/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,004,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">465</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Adams Outdoor Advertising LP, LIBOR + 1.75%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">465,927</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Aearo Technologies, Inc., LIBOR + 2.50%, 3/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,004,150</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,980</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Alliance One Intl., Inc., Loan B, LIBOR + 3.50%, 5/13/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,984,951</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">497</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Arby&#146;s Restaurant Group, Inc., Loan B, LIBOR + 2.25%, 7/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">495,733</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Bare Escentuals Beauty, Inc., LIBOR + 7.00%, 7/10/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">505,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Berkline Bench Craft,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,583</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 3.75%, 10/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,345,373</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 10.00%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,460,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Bumble Bee Foods LLC, Loan B, LIBOR + 1.75%, 4/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">747,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,582</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,578,002</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,496</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Burlington Coat Factory Warehouse Corp., Loan B, LIBOR + 2.25%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,449,760</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">885</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Carrols Corp., LIBOR + 2.50%, 12/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">889,653</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">496</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Centerplate, Inc., LIBOR + 3.25%, 10/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498,102</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% align=center nowrap>&nbsp;</TD>
	<TD width=5% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2% align="center">&nbsp;
	</TD>
	<TD width=73% align=center nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;(cont&#146;d)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Central Garden &amp; Pet Co., Loan B, LIBOR + 1.50%, 9/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp; &nbsp; &nbsp; 998,333</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">495</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chiquita Brands Intl., Inc., Loan C, LIBOR + 2.25%, 7/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">493,556</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">896</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">CKE Restaurants, Inc., LIBOR + 2.00%, 5/17/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">901,471</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">999</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Coinmach Corp., Loan B1, LIBOR + 2.50%, 12/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,001,905</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,668</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Commonwealth Brands, Inc., LIBOR + 2.25%, 12/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,674,173</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cracker Barrel, Loan B, LIBOR + 1.50%, 5/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,489,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">743</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Culligan Intl. Co., Loan B, LIBOR + 2.00%, 10/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">741,108</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Denny&#146;s Corp., LIBOR + 5.13%, 8/25/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,552,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,096</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Desa Intl., Inc., LIBOR + 5.75%, 12/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,096,926</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Eastman Kodak Co.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">878</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 2.25%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">875,452</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">368</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 2.25%, 10/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">366,575</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Easton Bell Sports, Inc., Loan B, LIBOR + 1.75%, 3/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">999,167</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,353</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Eight O&#146;Clock Coffee, Loan B, LIBOR + 3.00%, 12/15/06</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,352,679</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Fender Musical Instruments Corp., LIBOR + 6.00%, 9/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">501,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Foodvest Ltd. (GBP),</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">438</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">813,576</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">438</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C, TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">817,621</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Herbalife Intl., Inc., TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">505</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hertz Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">191</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.25%, 12/31/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">190,989</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">359</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.25%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">360,046</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Knoll, Inc., TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,883</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">988</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Landry&#146;s Restaurants, Inc., Loan B, LIBOR + 1.75%, 12/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">987,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">710</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Language Line, Inc., Loan B, LIBOR + 4.25%, 6/14/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">713,479</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">574</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Le-Natures, Inc., Loan B, LIBOR + 3.00%, 5/30/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">577,864</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,742</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Maidenform, Inc., LIBOR + 1.75%, 5/14/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,742,424</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">898</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mapco Express, Inc., LIBOR + 2.75%, 5/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">899,344</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,444</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Movie Gallery, Inc., Loan B, LIBOR + 5.25%, 4/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,396,172</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,661</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Neiman-Marcus Group, Inc., LIBOR + 2.50%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,670,738</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,552</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">New Page, Loan B, LIBOR + 3.00%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,556,021</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Olympus Cable Holdings LLC, Loan B, PRIME + 2.00%, 9/30/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,343,046</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Orchard Supply Hardware Stores Corp., Loan B2, LIBOR + 2.45%, 12/09/07</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">543</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Oreck Corp., Loan B, LIBOR + 2.75%, 1/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">546,312</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Oriental Trading Co., Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,326</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 8/06/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,329,283</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 4.75%, 12/02/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,511,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,438</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">OSI Group LLC, Loan B, LIBOR + 1.75%, 9/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,435,452</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pantry, Inc., TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,251</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">901</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">PBM Products LLC, Loan B, LIBOR + 3.00%, 7/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">900,864</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,140</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pierre Foods, Inc., Loan B, LIBOR + 2.00%, 7/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,137,325</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pivotal Promontory LLC, LIBOR + 6.50%, 9/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">745,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,960</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Prestige Brands Holdings, Inc., Loan B, LIBOR + 2.25%, 4/07/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,966,533</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">956</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Propex Fabrics, Inc., Loan B, LIBOR + 2.25%, 8/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">954,574</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Quiznos Corp., LIBOR + 2.25%, 5/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,994,166</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,157</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">R.H. Donnelley, Inc., Loan D2, LIBOR + 1.50%, 12/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,146,066</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,497</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Roundy&#146;s Supermarkets, Inc., LIBOR + 3.00%, 11/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,503,732</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">673</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Spectrum Brands, Inc., Loan B, LIBOR + 3.00%, 1/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">674,663</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,400</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Sturm Foods, Inc., LIBOR, 5/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,401,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,496</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Supervalu, Inc., TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,492,509</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Synventive Acquisition, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">746</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 3.50%, 7/27/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">723,863</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">808</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 14.0%, 2/17/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">743,419</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">499</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Travelcenters of America, Inc., Loan B, LIBOR + 1.75%, 6/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">498,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">923</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tupperware Corp., LIBOR + 1.50%, 11/07/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">917,199</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">525</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Warnaco, Inc., Loan B, LIBOR + 1.50%, 1/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">523,031</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Waterpik Technologies, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.25%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">502,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 6.50%, 10/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">761,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Consumer Products</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">75,470,884</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% align=center nowrap>&nbsp;</TD>
	<TD width=5% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width=2% align="center">&nbsp;
	</TD>
	<TD width=73% align=center nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=6>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Containers &amp; Packaging&#151;5.5%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;2,636</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Bluegrass Container Co. LLC, TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp;&nbsp; 2,636,364</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Covalence Specialty Materials Corp., LIBOR + 3.25%, 8/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">201,417</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">329</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Flexsol Packaging Corp., LIBOR + 3.25%, 11/30/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">329,839</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Georgia-Pacific Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,494</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.00%, 2/28/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,488,296</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.00%, 2/28/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,511,682</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Graham Packaging Co. LP,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,673</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 10/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,676,783</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,429</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C, LIBOR + 4.25%, 4/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,445,239</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,425</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Graphic Packaging Intl., Inc., Loan C, LIBOR + 2.50%, 8/08/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,450,899</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mark IV Industries, Inc., TBD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,000,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Smurfit-Stone Container Enterprises, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">896</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 11/01/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">898,642</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 2.50%, 2/15/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">965,883</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C1, LIBOR + 3.00%, 2/15/15</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">969,223</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,940</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Solo Cup, Inc., LIBOR + 2.50%, 2/27/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,947,199</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Containers &amp; Packaging</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">24,521,466</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;0.5%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Envirosolutions, Inc.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">432</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.50%, 2/28/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">435,946</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,568</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.50%, 7/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,580,304</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Ecological Services &amp; Equipment</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,016,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;6.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AES Corp., LIBOR + 1.75%, 4/30/08</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,505,356</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,396</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Astoria Generating Co. Acquisitions LLC, Loan B, LIBOR + 2.00%, 2/23/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,393,772</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Boart Longyear Co.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">188</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.00%, 7/28/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">188,844</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,304</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.00%, 11/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,307,387</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 7.00%, 4/30/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">505,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">958</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cellnet Technology, Inc., Loan B, LIBOR + 3.00%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">964,266</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Coffeyville Resources LLC,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">893</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.50%, 7/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">895,780</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">600</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 6/22/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">601,688</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">355</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Cogentrix Delaware Holdings, Inc., LIBOR + 1.50%, 4/30/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">354,699</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Coleto Creek Power, Loan C1, LIBOR + 2.00%, 8/05/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">249</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Complete Production Services, Inc., Loan B, LIBOR + 2.50%, 8/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">248,958</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">El Paso Production Holding Co.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">970</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.75%, 11/30/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">974,310</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.85%, 11/23/09</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">753,333</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,497</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Key Energy Services, Inc., Loan B, LIBOR + 3.25%, 8/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,501,861</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">LSP General Finance Co. LLC,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">0.875%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">40,236</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">960</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 1.75%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">955,597</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">469</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mainline LP, LIBOR + 2.38%, 12/31/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">471,792</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Meg Energy Corp., Loan B, LIBOR + 2.25%, 4/15/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">501,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">432</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">MGG Holdings, LIBOR + 2.00%, 12/15/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">432,193</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mirant NA LLC, Loan B, LIBOR + 1.75%, 1/05/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">994,650</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,006</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">NRG Energy, Inc., LIBOR + 2.00%, 1/31/13</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,008,714</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,247</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Petro Geological Services, Loan B, LIBOR + 2.50%, 12/31/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,250,383</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">389</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Petrohawk, LIBOR + 4.50%, 7/31/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">390,833</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Plum Point Energy Associates,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">716</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 3.25%, 3/14/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">717,764</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">194</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.75%, 3/14/14</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">194,852</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,984</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Reliant Energy, Inc., LIBOR + 2.38%, 4/30/10</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,981,023</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,123</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Semcrude LP, LIBOR + 2.25%, 2/28/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,128,947</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,498</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Trinidad Energy Services Income Trust, LIBOR + 2.50%, 4/15/11</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,497,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Wolf Hollow I LP,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">0.50%, 6/22/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">99,688</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">894</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 6/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">891,049</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR, 12/15/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">503,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30,755,475</FONT>&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 align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% align=center nowrap>&nbsp;</TD>
        <TD width=5% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD width=73% align=center nowrap>&nbsp;

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

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

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;7.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp; &nbsp; &nbsp; 993</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Blockbuster Entertainment Corp., Loan B, LIBOR + 3.75%, 8/20/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;992,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,965</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Boyd Gaming Corp., Loan B, LIBOR + 1.50%, 5/14/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,965,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,229</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CCM Merger, Inc., Loan B, LIBOR + 2.00%, 7/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,215,783</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Century Theatres, Inc., LIBOR + 1.88%, 3/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edge Las Vegas, LIBOR, 6/15/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Greektown Holdings LLC, Loan B, LIBOR + 2.50%, 12/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,012,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hallmark Entertainment LLC, Loan B, LIBOR + 2.50%, 12/31/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,503,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,493</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hit Entertainment Ltd., LIBOR + 2.25%, 8/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,494,366</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hollywood Theaters, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,719</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.25%, 8/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,727,972</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 7.00%, 1/21/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,518,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,485</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kerasotes Theatres, Inc., Loan B, LIBOR + 2.50%, 11/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,488,093</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,005</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Metro-Goldwyn-Mayer Studios, Inc., Loan B, LIBOR + 2.25%, 4/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,017,293</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">996</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Penn National Gaming, Inc., Loan B, LIBOR + 1.75%, 5/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">997,072</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Riverside Casino &amp; Golf Resort LLC, Loan B, LIBOR + 4.00%, 11/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">980</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Universal City Development Partners LP, Loan B, LIBOR + 2.00%, 6/30/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">979,387</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Venetian Casino Resorts LLC, Loan B, LIBOR + 1.75%, 6/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wembley, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">995</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.00%, 8/31/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">994,378</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 3.75%, 8/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">502,917</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,099</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wyndham Intl., Inc., Loan E, LIBOR + 4.50%, 9/11/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,099,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., LIBOR + 2.13%, 12/31/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,009,168</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">477</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Yellowstone Mountain Club, LIBOR + 2.375%, 10/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">477,451</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Entertainment &amp; Leisure</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">33,995,880</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;12.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Advantage Sales &amp; Marketing, Inc., LIBOR + 2.00%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">990,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ameritrade Holding Corp., Loan B, LIBOR + 1.50%, 1/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">747,938</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,020</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Arias Acquisitions, Inc., LIBOR + 3.75%, 7/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,002,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audatex, LIBOR + 5.50%, 10/15/13 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,611,394</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,975</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Billing Services Group, LIBOR + 2.50%, 5/05/12 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,363,276</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CCC Information Services Group, Inc., Loan B, LIBOR + 2.50%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">501,666</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Century Corp., PRIME + 2.00%, 12/31/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,557,140</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Global Cash Access LLC, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">17,860</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">GS Holdings Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">64</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">0.50%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">63,438</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">686</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 1.75%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">684,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,354</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jostens, Inc., Loan C, LIBOR + 2.00%, 10/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,363,807</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Level 3 Financing, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">749,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Moeller Group, LIBOR, 9/17/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,597,751</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,088</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">N.E.W. Holdings I LLC, LIBOR + 3.00%, 7/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,093,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nasdaq Stock Market, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,266</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 1.75%, 4/18/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,263,821</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">734</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C, LIBOR + 1.75%, 4/18/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">732,862</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Navistar Financial Corp., LIBOR + 5.00%, 2/28/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,030,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NTL, Inc., Loan A, LIBOR + 5.00%, 3/23/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,996,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Owens Illinois Group, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR, 6/30/13 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,558,101</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR, 6/30/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">999,583</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,493</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pinnoak Resources LLC, LIBOR + 3.25%, 11/22/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,485,037</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,247</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Professional Service, Inc., Loan B, LIBOR + 3.00%, 10/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250,772</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,908</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ripplewood Phosphorus U.S. LLC, LIBOR + 3.25%, 7/16/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,884,009</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Targa Resources, Inc., LIBOR + 2.25%, 10/31/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,498,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,744</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TPG Springs, Loan C, TBD (GBP)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,945,495</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">461</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">USI Holdings Corp., Loan B, LIBOR + 2.25%, 7/30/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">464,133</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">57,451,589</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Health Care&#151;8.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,361</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Arizant, Inc., LIBOR + 3.75%, 8/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,369,183</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,995</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CCS Medical, Loan B, LIBOR + 3.25%, 10/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,898,368</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,363</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Community Health Systems, Inc., LIBOR + 1.75%, 8/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,364,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,271</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Concentra Operating Corp., Loan B, LIBOR + 2.00%, 9/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,277,132</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% align=center nowrap>&nbsp;</TD>
        <TD width=5% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2% align="center">&nbsp;
        </TD>
        <TD width=73% align=center nowrap>&nbsp;

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

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

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Health Care&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;902</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Davita, Inc., Loan B, LIBOR + 2.00%, 6/30/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 903,338</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">796</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Duloxetine Royalty, LIBOR + 4.50%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">800,306</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Healthsouth Corp., Loan B, LIBOR + 3.25%, 3/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,995,716</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,948</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">IASIS Healthcare Corp., Loan B, LIBOR + 2.25%, 6/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,960,395</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,480</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jean Coutu Group, Inc., Loan B, LIBOR + 2.50%, 6/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,481,585</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">467</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kinetic Concepts, Inc., Loan B2, LIBOR + 1.75%, 8/05/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">469,983</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Multiplan, Inc., LIBOR + 2.00%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">994,583</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">National Renal Institutes, Inc., Loan B, LIBOR + 2.25%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">997,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quintiles Transnational Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.00%, 3/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">998,438</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 4.00%, 3/31/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">253,203</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">499</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Radnet Management, Inc., Loan B, LIBOR + 4.00%, 3/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">497,503</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Select Medical Corp., Loan B , LIBOR +1.75%, 2/28/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">978,491</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,014</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">U.S. Oncology, Inc., LIBOR + 2.25%, 6/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,024,853</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vanguard Health Holding Co. II, LIBOR + 2.25%, 9/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">993,306</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Warner Chilcott Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,161</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.50%, 1/18/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,168,368</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">871</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C, LIBOR + 2.50%, 1/18/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">873,746</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">402</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan D, LIBOR + 2.50%, 1/18/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">403,646</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">530</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 1/18/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">531,342</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Health Care</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">37,235,565</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Acosta, Inc., LIBOR + 5.75%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">153,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">408</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alderwoods Group, Inc., Loan B2, LIBOR + 2.00%, 9/29/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">408,311</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bolthouse Farms, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">998</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 12/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,003,111</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 5.50%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">506,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">403</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chart Industries, Inc., Loan B, LIBOR + 2.00%, 10/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">402,526</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Drummond Co., Inc., LIBOR + 1.25%, 2/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,997,501</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Novelis, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">229</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 1/13/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">229,354</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">398</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 12/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">398,352</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">QTC Acquisition, Inc., LIBOR + 6.50%, 5/04/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">625,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tinnerman Palnut Engineered Products, Inc., LIBOR + 7.75%, 11/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,940,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">308</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Worldspan LP, LIBOR + 2.75%, 6/30/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">304,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Industrials</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,968,105</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;16.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alliance Atlantis Communications, Inc., Loan C, LIBOR + 1.50%, 11/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,834,705</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Lawyers Media, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,719</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.50%, 3/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,714,244</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 5.75%, 3/07/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,011,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Media Operations, Inc., Loan B, LIBOR + 3.00%, 1/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,005,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">973</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bragg Communications, Inc., Loan B, LIBOR + 2.00%, 9/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">972,576</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bresnan Communications Group LLC, LIBOR + 2.00%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,256,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,398</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cablecom SCA, Loan A, LIBOR, 12/31/10 (CHF)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,235,632</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cablevision Systems Corp., LIBOR + 1.50%, 3/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,977,916</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Century TCI California LP, PRIME, 12/31/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,983,334</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cequel Communications LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 2.25%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,477,498</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.25%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,483,928</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Communications Holdings LLC/Charter Communication Holdings Capital Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.63%, 4/28/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,505,148</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">739</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CMP Susquehanna Corp., Loan B, LIBOR + 2.00%, 5/05/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">738,593</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,443</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dex Media East LLC, Loan B, LIBOR + 1.50%, 12/31/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,424,338</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dex Media West LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">882</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 1.50%, 9/09/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">877,016</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,566</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, LIBOR + 1.50%, 9/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,556,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">DirecTV Holdings LLC, Loan B, LIBOR + 1.50%, 3/06/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,998,612</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">798</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Emmis Communications Co., Loan B, LIBOR + 1.75%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">799,101</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gatehouse Media Operating, Inc., TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,247,656</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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=7% nowrap>&nbsp;</TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
  <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Insight Midwest Holdings LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp;3,550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan A, LIBOR + 1.25%, 6/30/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 3,530,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,977</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C, LIBOR + 2.00%, 12/31/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,975,606</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">KDG Media Technologies AG, Loan A, PRIME, 3/31/12 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,128,409</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,496</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liberty Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,493,445</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mediacom Broadband LLC, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,494,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,971</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mediacom Communications Corp., Loan A, LIBOR + 1.00%, 3/31/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,952,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,975</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mediacom Illinois LLC, Loan C, LIBOR + 1.75%, 1/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,967,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Medianews Group, Inc., TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,936</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mission Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,931,345</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NEP Supershooters LP,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">676</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 4.00%, 2/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">681,610</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 8.00%, 8/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">505,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New Wave Communications, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,926</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nexstar Finance, Inc., Loan B, LIBOR + 1.75%, 8/14/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,921,055</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Prism Business Media, Inc., Loan B, LIBOR + 2.25%, 10/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Puerto Rico Cable Acquisition Co., LIBOR + 6.25%, 7/31/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">753,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">748</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quebecor Media, Inc., Loan B, LIBOR + 2.00%, 1/17/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">749,528</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B2, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,290,535</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C2, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,295,705</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">148</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Triple Crown Media, Inc., LIBOR + 3.25%, 12/30/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">147,610</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wide Open West Finance LLC, Loan B, LIBOR + 2.25%, 4/30/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,919</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">WMG Acquisition Corp., LIBOR + 2.00%, 4/08/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,920,678</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">997</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Young Broadcasting, Inc., LIBOR + 2.50%, 11/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">992,514</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Media</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">73,382,492</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Publishing&#151;0.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">748</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Endurance Business Media, Loan B, LIBOR + 2.25%, 3/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">748,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Real Estate&#151;1.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Acoustical Materials, LIBOR + 2.75%, 4/30/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,054,567</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,596</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Headwaters, Inc., LIBOR + 2.00%, 4/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,597,906</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">781</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kyle Acquisition Group LLC, LIBOR + 2.00%, 7/31/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">780,371</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">866</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lake Las Vegas Resort, LIBOR + 2.75%, 10/13/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">866,594</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">496</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Masonite Intl. Corp., LIBOR + 2.00%, 3/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">489,717</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">403</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stewart Enterprises, Inc., Loan B, LIBOR + 1.75%, 11/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">402,737</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Real Estate</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,191,892</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;4.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Activant Solutions, Inc., Loan B, LIBOR + 2.00%, 4/30/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">495,312</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">748</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Affiliated Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">746,259</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Castle Intl. Corp., TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">752,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,908</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Directed Electronics, Inc., LIBOR + 2.25%, 3/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,917,837</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Electrical Components Intl. Holdings Co., LIBOR + 6.50%, 5/19/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">501,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">495</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Federal IT Systems, Inc., LIBOR + 2.50%, 4/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">497,165</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nuance Communications, Inc., LIBOR + 2.00%, 12/29/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">991,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sensata Technologies BV,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B, LIBOR + 1.75%, 4/30/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,986,786</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">TBD (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,918,576</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">352</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">SS&amp;C Technologies, Inc., LIBOR + 2.50%, 11/04/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">352,972</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sungard Data Systems, Inc., Loan B, LIBOR + 2.50%, 1/05/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,487,247</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,114</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UGS Corp., LIBOR + 2.00%, 5/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,108,436</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,868</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Verifone, Inc., Loan B, LIBOR + 1.75%, 6/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,864,238</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,286</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Westcom Corp., Loan B, LIBOR + 2.75%, 12/31/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,290,884</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Technology</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">19,911,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Telecommunications&#151;7.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alaska Communications Systems Holdings, Inc., LIBOR + 1.75%, 1/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">998,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Atlantic Broadband Finance LLC, Loan B1, LIBOR + 2.75%, 1/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,031,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cavalier Telecom, Loan B, LIBOR + 4.50%, 3/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">454,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,369</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Centennial Cellular Operating Co., LIBOR + 2.25%, 2/09/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,380,037</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Communication Supply Corp., LIBOR + 2.75%, 2/28/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500,000</FONT>&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">14</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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="5%" nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="5%" nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="73%" nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Telecommunications&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Country Road Communications LLC, LIBOR, 6/30/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 506,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fairpoint Communications, Inc., LIBOR + 1.75%, 2/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">746,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">988</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Intelsat Zeus Ltd., PRIME + 0.75%, 7/31/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">987,088</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Iowa Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,999,584</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">IPC Acquisition Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">959</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 2.75%, 8/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">961,508</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">LIBOR + 7.25%, 8/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">757,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Madison River Capital LLC, Loan B1, LIBOR + 2.25%, 7/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,001,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nortel Networks Corp., Loan A, LIBOR + 2.00%, 2/15/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">498,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">741</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NTELOS, Inc., LIBOR + 2.25%, 2/24/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">739,468</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nuvox Communications, TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">755,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PanAmSat Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">819</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan A1, LIBOR + 2.50%, 8/20/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">819,818</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">428</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan A2, LIBOR + 2.50%, 8/20/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">427,588</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,970</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 2.00%, 7/16/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,975,492</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Qwest Corp., Loan A, LIBOR + 4.75%, 6/30/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,027,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">449</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Triton PCS, Inc., LIBOR + 3.25%, 11/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">450,884</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,433</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Valor Telecommunication Enterprises II LLC, Loan B, LIBOR + 1.75%, 2/28/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,432,736</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wind Acquisition Finance SA,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan B1, LIBOR + 2.75%, 7/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,564,496</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loan C1, LIBOR + 3.25%, 7/31/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,577,287</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,552,105</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Telecommunications</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">32,145,779</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">`</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Transportation&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">875</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Delta Air Lines, Inc., Loan A, LIBOR + 2.75%, 4/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">882,344</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">360</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sirva Worldwide, Inc., LIBOR + 4.50%, 12/31/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">350,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">607</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Transport Industries LP, Loan B, LIBOR + 2.50%, 9/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">608,501</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">875</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UAL Corp., Loan B, LIBOR + 3.75%, 1/31/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">883,203</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vanguard Car Rental Holdings, Inc., TBD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,503,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,227,235</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Bank Loans</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">525,441,763</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Foreign Government Bonds&#151;24.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Argentina Republic, 4.005%, 8/03/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,175,680</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,357</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bolivarian Republic of Venezuela, 2.75%, 12/18/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,356,736</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Federative Republic of Brazil,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,435</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.72%, 6/29/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,732,312</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">640</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 10.00%, 8/07/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">727,360</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Islamic Republic of Pakistan, 6.75%, 2/19/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,570,778</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,689</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kingdom of Morocco, 5.688%, 1/02/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,631,998</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">800</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Malaysia, 8.75%, 6/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">858,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Chile, 6.875%, 4/28/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,469,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,200</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Colombia, 8.047%, 3/17/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,311,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Costa Rica, 9.335%, 5/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,416,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of El Salvador, 9.50%, 8/15/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">803,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Panama,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,714</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2.75%, 7/17/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,714,273</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.25%, 4/22/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,070,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Peru,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,432</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.50%, 3/07/17</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,173,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 1/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,496,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of South Africa, 7.375%, 4/25/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,502,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of the Philippines, 8.875%, 4/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,474,347</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Turkey, 12.00%, 12/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,616,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Uruguay, 6.875%, 1/19/16 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,163,456</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Republic of Venezuela,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,214</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">3.063%, 3/31/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,213,931</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.09%, 4/20/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,990,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 6/18/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,903,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.00%, 3/05/08 (EUR)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,821,074</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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="5%" nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="5%" nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="73%" nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Foreign Government Bonds&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp;4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Russian Federation, 10.00%, 6/26/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 4,148,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">16,100</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3,4</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.365%, 8/05/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">16,864,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,800</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.875%, 3/04/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,730,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">United Mexican States,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">4,800</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,4</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.75%, 1/13/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,834,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 12/24/08 (MXN)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">879,974</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,820</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 12/22/11 (MXN)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">883,876</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Foreign Government Bonds</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">110,531,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Common Stock&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">947</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Critical Care Systems Intl., Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,482</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total investments&#151;164.1% (cost &#36;732,049,806</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 734,292,458</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liabilities in excess of other assets&#151;(9.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(43,367,262)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.4)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(243,516,274</FONT><FONT size=1 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 447,408,922</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=3 cellpadding=0>
<TR>
  <TD valign=top nowrap><HR noshade align="left" width="8%" size=1></TD>
  </TR>
<TR>
        <TD width=99%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">1</FONT></SUP>Using the higher of S&amp;P, Moody&#146;s or Fitch rating.</FONT></P> </TD>
</TR>
<TR>
        <TD width=99% valign="baseline">
<P align="justify"><FONT size=1 face="serif"> <SUP><FONT size=1 face="serif">2</FONT></SUP>Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30,
2006, the Trust held 7.2% of its net assets, with a current market value of &#36;32,258,997, in securities restricted as to resale.</FONT></P>  </TD>
</TR>
<TR>
        <TD width=99%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">3</FONT></SUP>Variable rate security. Rate shown is interest rate as of June 30, 2006.</FONT></P>   </TD>
</TR>
<TR>
        <TD width=99%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">4</FONT></SUP>Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.</FONT></P>     </TD>
</TR>
<TR>
        <TD width=99%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">5</FONT></SUP>Non-income producing security.</FONT></P>     </TD>
</TR>
<TR>
        <TD width=99%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">6</FONT></SUP>Cost for Federal income tax purposes is &#36;732,180,724. The net unrealized appreciation on a tax basis is &#36;2,111,734, consisting of &#36;7,641,991 gross unrealized appreciation and &#36;5,530,257
gross unrealized depreciation.</FONT></P>       </TD>
</TR>
<TR><TD>&nbsp;</TD></TR></TABLE>
<P align="justify">
<FONT size=1 face="serif">A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the Securities and Exchange Commission&#146;s (&#147;SEC&#146;s&#148;) Standard Industry Codes.</FONT></P>
<DIV STYLE="border:1px solid black; width:100%; PADDING:3%">
<TABLE width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="7" align=center nowrap>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>&nbsp;
        </TD>
        </TR>
<TR valign="bottom">
        <TD width=3% align=left nowrap>
<FONT size=1 face="serif">CHF</FONT>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">Swiss Franc</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=3% align=left nowrap> <FONT size=1 face="serif">GBP</FONT>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=45% align=left nowrap>
<FONT size=1 face="serif">British Pound</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">CND</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Canadian Dollar</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=1 face="serif">MXN</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mexican Peso</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">EUR</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">European Monetary Unit</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=1 face="serif">TBD</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">To Be Determined</FONT>&nbsp;
        </TD>
</TR>
</TABLE></div>
<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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">JUNE 30, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;141.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Corporate Bonds&#151;139.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;5.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AAR Corp., 6.875%, 12/15/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 250,313</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Argo-Tech Corp., 9.25%, 6/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">648,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Armor Holdings, Inc., 8.25%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">82,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Availl, Inc., 7.625%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,824,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BE Aerospace, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,135</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.50%, 10/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,194,587</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.875%, 5/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">434,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,875</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">DI Finance/DynCorp. Intl., 9.50%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,990,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">DRS Technologies, Inc., 7.625%, 2/01/18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">168,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">270</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sequa Corp., 9.00%, 8/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">284,175</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Aerospace &amp; Defense</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,878,575</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Automotive&#151;3.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Autonation, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">360</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">356,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">360</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.045%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">363,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">70</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">69,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Delco Remy Intl., Inc., 9.375%, 4/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">280,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dura Operating Corp., 8.625%, 4/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">405</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lear Corp., 8.11%, 5/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">392,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Meritor Automotive, Inc., 6.80%, 2/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">21,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,735</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Metaldyne Corp., 10.00%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,674,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stanadyne Corp., 10.00%, 8/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">185,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">155</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tenneco, Inc., 8.625%, 11/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">155,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TRW Automotive, Inc., 9.375%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">584,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Automotive</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,193,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;14.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Abitibi-Consolidated, Inc., (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">155</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.00%, 6/20/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.375%, 4/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">163,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">595</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AK Steel Corp., 7.75%, 6/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">586,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,287,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">215</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.099%, 7/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">219,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">350</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bowater, Inc., 7.91%, 3/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">352,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">275</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">246,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chemtura Corp., 6.875%, 6/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">57,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,010</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Del Monte Corp., 8.625%, 12/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,037,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Domtar, Inc. (Canada),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.125%, 8/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">139,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">640</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.875%, 10/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">603,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">390</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Donohue Forest Products, 7.625%, 5/15/07 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">393,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Equistar Chemicals LP/Equistar Funding Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%, 2/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">128,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,780</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.125%, 9/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,939,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.625%, 5/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,343,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Huntsman Intl. LLC, 7.375%, 1/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">468,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Huntsman LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.625%, 10/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,605,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">12.318%, 7/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">437,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">IMC Global, Inc., 10.875%, 6/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">213,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">985</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">928,362</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,205</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Innophos, Inc., 8.875%, 8/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,180,194</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jacuzzi Brands, Inc., 9.625%, 7/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">316,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">790</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lyondell Chemical Co., 10.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">870,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nalco Co., 8.875%, 11/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">346,294</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">985</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NewPage Corp., 10.00%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,019,475</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width="5%" nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="5%" align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="73%" nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nova Chemicals Corp. (Canada),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp;<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.50%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;92,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,260</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.405%, 11/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,260,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rhodia SA (France),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">980</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.875%, 6/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">982,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">162</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 6/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">173,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Basic Materials</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">20,519,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Building &amp; Development&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">540</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compression Polymers Corp., 10.50%, 7/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">548,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ERICO Intl. Corp., 8.875%, 3/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,045,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Goodman Global Holding Co., Inc., 7.875%, 12/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">967,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">K Hovnanian Enterprises, Inc., 7.75%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">912,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">North American Energy Partners, Inc. (Canada),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">685</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%, 12/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">661,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 6/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">348,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Building &amp; Development</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,482,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;8.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">695</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ames True Temper, Inc., 9.068%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">682,837</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">475</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Burlington Coat Factory Warehouse Corp., 11.125%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">456,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">565</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cenveo Corp., 7.875%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">550,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">280 </FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Education Management LLC/Education Management Corp., 8.75%, 6/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">277,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">930</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Finlay Fine Jewelry Corp., 8.375%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">806,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">928</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gold Kist, Inc., 10.25%, 3/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">969,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,585</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Knowledge Learning Corp., Inc., 7.75%, 2/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,450,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,425</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lazydays RV Center, Inc., 11.75%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,291,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">110</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Levi Strauss &amp; Co., 7.73%, 4/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">111,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,230</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Merisant Co., 9.50%, 7/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">774,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">240</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Neiman-Marcus Group, Inc., 9.00%, 10/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">110</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nutro Products, Inc., 9.23%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">112,063</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quebecor World, Inc. (Canada),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">85</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.125%, 11/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">70,468</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">490</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%, 3/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">445,570</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quiksilver, Inc., 6.875%, 4/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">369,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">350</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Reynolds American, Inc., 7.625%, 6/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">341,688</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rite Aid Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.75%, 12/01/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">743,437</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">355</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.125%, 12/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345,681</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.125%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">251,563</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Swift &amp; Co., 12.50%, 1/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">497,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Consumer Products</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,799,667</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Containers &amp; Packaging&#151;6.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">430</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">421,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Cork &amp; Seal, Inc., 8.00%, 4/15/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,449,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">285</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown European Holdings SA, 7.375%, 12/15/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">248,663</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Graham Packaging Co., Inc., 8.50%, 10/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">122,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jefferson Smurfit Corp., 7.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">895,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Owens Brockway, 8.25%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,619,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Owens Illinois, Inc., 7.35%, 5/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">251,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Packaging Dynamics Finance Corp., 10.00%, 5/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">945</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pregis Corp., 12.375%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">982,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,870</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,923,762</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Containers &amp; Packaging</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,164,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Allied Waste NA, Inc., 8.50%, 12/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">207,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Casella Waste Systems, Inc., 9.75%, 2/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">418,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Waste Services, Inc., 9.50%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">805,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">300</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">WCA Waste Corp., 9.25%, 6/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">303,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Ecological Services &amp; Equipment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,733,500</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;18.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AES Corp., 9.50%, 6/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 265,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">285</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ANR Pipeline Co., 9.625%, 11/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">329,887</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Aquila Finance Corp., 7.75%, 6/15/11 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">315,675</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420 </FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chaparral Energy, Inc., 8.50%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">416,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chesapeake Energy Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">435</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.375%, 6/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">404,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.625%, 1/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220,313</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ChipPAC, Inc., 2.50%, 6/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">107,763</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CMS Energy Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.50%, 1/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">81,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.50%, 4/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">166,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">390</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">381,225</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">815</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compton Petroleum Finance Corp., 7.625%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">768,137</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,875</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dynegy Danskammer LLC, 7.27%, 11/08/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,875,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">740</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">East Cameron Gas Co., 11.25%, 7/09/19 (Cayman Islands)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">740,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edison Mission Energy, 7.50%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">58,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">El Paso Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.625%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,514,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">205</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.75%, 10/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">224,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">50</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">El Paso Natural Gas Co., 8.875%, 6/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">53,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">682</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Elwood Energy LLC, 8.159%, 7/05/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">736,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Exco Resources, Inc., 7.25%, 1/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,126,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Grant Prideco, Inc., 6.125%, 8/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">92,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hilcorp Energy I LP/Hilcorp Finance Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">775</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.75%, 11/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">732,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">139</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.50%, 9/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">149,773</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">152</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Homer City Funding LLC, 8.734%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">169,194</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">KCS Energy, Inc., 7.125%, 4/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">678,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Midwest Generation LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.56%, 1/02/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">210,759</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">295</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">313,438</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mirant Americas Generation LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.30%, 5/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">177,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 5/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,131,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,465</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mission Energy Holdings Co., 13.50%, 7/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,637,137</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NRG Energy, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.25%, 2/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">97,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">570</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.375%, 2/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">556,462</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,510</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orion Power Holdings, Inc., 12.00%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,713,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pogo Producing Co., 7.875%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">129,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Reliant Energy, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">210</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 12/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">193,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">285</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 7/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">285,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">734</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Salton SEA Funding, 8.30%, 5/30/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">766,623</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Southern Natural Gas Co., 8.00%, 3/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">312,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">400</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stone Energy Corp., 8.24%, 7/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">399,816</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Targa Resources, Inc., 8.50%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">332,925</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">591</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tenaska Alabama Partners LP, 7.00%, 6/30/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">573,422</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">58,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TXU Corp., 6.55%, 11/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">176,037</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Whiting Petroleum Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 2/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">33,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.25%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">835,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Williams Cos., Inc., 8.75%, 3/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,817,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">25,359,155</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;5.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">470</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AMC Entertainment, Inc., 11.00%, 2/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">502,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Caesars Entertainment, Inc., 7.875%, 3/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">518,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Felcor Lodging LP, 9.57%, 6/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">257,500</FONT>&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">19</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gaylord Entertainment Co.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 11/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 417,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 11/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">998,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">840</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Greektown Holdings LLC, 10.75%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">883,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">350</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pokagon Gaming Authority, 10.375%, 6/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">361,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">905</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poster Financial Group, Inc., 8.75%, 12/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">938,937</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">705</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Riddell Bell Holdings, Inc., 8.375%, 10/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">694,425</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Royal Caribbean Cruises Ltd., 6.875%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">489,942</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">140</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Pasqual Casino, 8.00%, 9/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">140,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Seneca Gaming Corp., 7.25%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">613,462</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Station Casinos, Inc., 6.625%, 3/15/18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">272,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Virgin River Casino, 9.00%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Warner Music Group, 7.375%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">145,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">118,906</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Entertainment &amp; Leisure</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,853,535</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;12.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">277</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AES Ironwood LLC, 8.857%, 11/30/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">299,808</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">671,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crum &amp; Forster Holdings Corp., 10.375%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">172,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">E*Trade Financial Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.375%, 9/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">205</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.875%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">210,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,075</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">946,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ford Motor Credit Co.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.70%, 1/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">165,584</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.25%, 10/25/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">399,170</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,620</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">General Motors Acceptance Corp., 6.875%, 9/15/11-8/28/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,543,987</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">iPayment, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,015</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.75%, 5/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,020,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,600</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.625%, 7/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,584,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,745</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">K&amp;F Acquisition, Inc., 7.75%, 11/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,718,825</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,655</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,592,938</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,550</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rainbow National Services LLC, 10.375%, 9/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,824,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Standard Aero Holdings, Inc., 8.25%, 9/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,879,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Universal City Florida Holding Co. I/II, 7.96%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">112,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Visant Corp., 7.625%, 10/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,425,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Western Financial Bank, 9.625%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">121,404</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,908,366</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Health Care&#151;6.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,115</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,073,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Healthsouth Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,450</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.75%, 6/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,387,892</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">965</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.418%, 6/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">950,525</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">933,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Select Medical Corp., 7.625%, 2/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">285,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">670</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tenet Healthcare Corp., 6.875%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">534,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Universal Hospital Services, Inc., 10.125%, 11/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,234,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">VWR Intl., Inc., 8.00%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,456,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Health Care</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,856,630</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;7.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Blount, Inc., 8.875%, 8/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">997,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">H&amp;E Equipment Services LLC/H&amp;E Finance Corp., 11.125%, 6/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,104,290</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NationsRent Cos., Inc., 9.50%, 5/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">610,938</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Polypore, Inc., 8.75%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,910</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rent-A-Center, Inc., 7.50%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,895,675</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">772</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Service Corp. Intl., 7.70%, 4/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">775,860</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,720</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sunstate Equipment Co. LLC, 10.50%, 4/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,771,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">175</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Terex Corp., 7.375%, 1/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">172,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">610</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trimas Corp., 9.875%, 6/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">555,100</FONT>&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 align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">United Rentals NA, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 1,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 2/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 1,738,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,050</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.75%, 11/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">997,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Industrials</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,809,338</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;16.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">980</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Affinion Group, Inc., 10.125%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">982,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">565</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Media Operations, Inc., 10.25%, 5/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">528,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">750</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cablevision Systems Corp., 8.716%, 4/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">795,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,940</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 9/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,947,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">565</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 9/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">565,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Communications Operating/Charter Communications Operating Capital, 8.375%, 4/30/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">715</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CMP Susquehanna Corp., 9.875%, 5/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">664,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dex Media East LLC/Dex Media East Finance Co., 9.875%, 11/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">528,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,088</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dex Media West LLC/Dex Media Finance Co., 9.875%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,179,120</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Echostar Communications Corp., 5.75%, 5/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">980,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Echostar DBS Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">325</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.125%, 2/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">310,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">365</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.758%, 10/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">370,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Emmis Operating Co., 6.875%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">General Cable Corp., 9.50%, 11/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">268,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Houghton Mifflin Co., 9.875%, 2/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">426,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">590</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">LIN Television Corp., 6.50%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">538,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">465</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Medianews Group, Inc., 6.875%, 10/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">426,056</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">495</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Network Communications, Inc., 10.75%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">487,575</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">770</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nexstar Finance, Inc., 7.00%, 1/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">700,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">575</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Paxson Communications Corp., 8.318%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">579,313</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Primedia, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,740</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,566,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">940</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.165%, 5/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">961,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,635</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">RH Donnelley Corp., 8.875%, 1/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,592,181</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Scholastic Corp., 5.00%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">352,305</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">225</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sinclair Broadcast Group, Inc., 4.875%, 7/15/18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">198,441</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">280</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sirius Satellite Radio, Inc., 9.625%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">263,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">175</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Unity Media GmbH, 10.375%, 2/15/15 (Germany)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">173,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vertis, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,020</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.75%, 4/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,037,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">665</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.875%, 6/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">653,363</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">13.50%, 12/07/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">203,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Young Broadcasting, Inc., 10.00%, 3/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,371,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Media</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">23,497,854</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;7.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Amkor Technology, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 3/15/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">157,713</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,270</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 6/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,203,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Celestica, Inc., 7.625%, 7/01/13 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,197,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fisher Scientific Intl., Inc., 3.25%, 3/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">556,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">200</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">212,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co. (Luxembourg),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">85</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.741%, 12/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">490</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 12/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">406,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">470</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sensata Technologies BV, 8.00%, 5/01/14 (Netherlands)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">457,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">530</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">SS&amp;C Technologies, Inc., 11.75%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">548,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">875,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sungard Data Systems, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">690</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.525%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">727,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">235</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">245,575</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,520</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 8/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,577,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">880,137</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">440</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UGS Capital Corp. II, 10.375%, 6/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">434,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">890</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UGS Corp., 10.00%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">958,975</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<center>
  <font size=2 face="serif"><br>
  See Notes to Financial Statements.</font>
</center>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width="5%" nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="5%" nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="73%" nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Xerox Corp., 7.625%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp;503,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Technology</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,024,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Telecommunications&#151;17.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Airgate PCS, Inc., 6.891%, 10/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">766,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Tower Corp., 7.125%, 10/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">997,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">645</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Centennial Communications Corp., 8.125%, 2/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">620,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,085</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cincinnati Bell, Inc., 7.25%, 7/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,048,512</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">170</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">172,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Insight Midwest LP/Insight Capital, 10.50%, 11/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">521,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Intelsat Ltd. (Bermuda),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">855</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.875%, 1/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">861,413</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 6/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">435,225</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">895</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.609%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">906,187</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.64%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,020,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lucent Technologies, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">965</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.45%, 3/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">820,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.50%, 1/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,842,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,980</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,034,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nortel Networks Corp., 6.875%, 9/01/23 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">120,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">880</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nortel Networks Ltd., 9.73%, 7/15/11 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">895,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PanAmSat Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,517</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 8/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,547,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">700</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 6/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">703,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,5</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poland Telecom Finance BV, 14.00%, 12/01/07 (Netherlands)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">230</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Qwest Capital Funding, Inc., 7.00%, 8/03/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">225,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Qwest Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">850</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.741%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">905,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 3/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,530,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">615</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rogers Wireless, Inc., 8.00%, 12/15/12 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">631,913</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rural Cellular Corp., 8.25%, 3/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,026,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,100</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,156,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Windstream Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,230</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.125%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,254,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,420</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.625%, 8/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,453,796</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Telecommunications</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">24,497,774</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Transportation&#151;2.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">280</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Airlines, Inc., 7.324%, 4/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">273,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">680</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">655,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">585</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hertz Corp., 8.875%, 1/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">599,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,616</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Horizon Lines LLC, 9.00%, 11/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,640,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Overseas Shipholding Group, Inc., 8.25%, 3/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">683,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,851,315</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">194,430,224</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Common Stocks&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">495</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Castle Intl. Corp.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">17,097</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,737</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Curative Health Services, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">22,419</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">64,467</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,6</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Goss Holdings, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Common Stocks</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">39,517</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred Securities&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Castle Intl. Corp., 6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">555,929</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Emmis Communications Corp., 6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">408,112</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NRG Energy, Inc., 4.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">641,562</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Owens Illinois, Inc., 4.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">175,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Smurfit-Stone Container Corp., 7.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">667,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Superior Essex Holding Corp., Ser. A, 9.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">48,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Preferred Securities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,496,103</FONT>&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">22</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="7%" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width="5%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width="2%" align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width="73%" align=center nowrap style="border-bottom:1px solid #000000;">
 <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD width="7%" align="center" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width="6%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Warrant&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,700</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,5,6</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pliant Corp., expires 6/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;203,590,563)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">196,965,844</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;"></TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENT&#151;6.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">U.S. Government and Agency Zero Coupon Bond&#151;6.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;8,800</FONT><SUP><FONT size=1 face="serif">7</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Federal Home Loan Bank Disc. Notes, 4.752%, 7/03/06 (cost &#36;8,797,678)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,797,678</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total investments&#151;147.7% (cost &#36;212,388,241</FONT></B><B><SUP><FONT size=1 face="serif">8</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;205,763,522</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liabilities in excess of other assets&#151;(47.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(66,446,048</FONT><FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;139,317,474</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=3>
<TR>
<TD valign=top nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD width=93%>&nbsp;</TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"> <SUP><FONT size=1 face="serif">1</FONT></SUP> Using the higher of S&amp;P, Moody&#146;s or Fitch rating.</FONT></P>       </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">2</FONT></SUP>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, </FONT></P>  </TD>
</TR>
<TR>
  <TD colspan="2" valign="top"><FONT size=1 face="serif">to qualified institutional buyers. As of June 30, 2006, the Trust held 36.7% of its net assets, with a current market value of &#36;51,168,239, in securities restricted as to resale.</FONT></TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">3</FONT></SUP>Variable rate security. Rate shown is interest rate as of June 30, 2006.</FONT></P>   </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">4</FONT></SUP> Issuer is in default and/or bankruptcy.</FONT></P>   </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">5</FONT></SUP>Security is fair valued.</FONT></P>   </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">6</FONT></SUP>Non-income producing security.</FONT></P>     </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">7</FONT></SUP>Rate shown is the yield to maturity as of June 30, 2006.</FONT></P>   </TD>
</TR>
<TR>
        <TD colspan="2">
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">8</FONT></SUP>Cost for Federal income tax purposes is &#36;212,937,438. The net unrealized depreciation on a tax basis is &#36;7,173,916, consisting of &#36;1,983,944 gross </FONT></P>    </TD>
</TR>
<TR>
  <TD colspan="2" valign="top"><font size=1 face="serif">unrealized appreciation and &#36;9,157,860 gross unrealized depreciation.</font></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="justify">
<FONT size=1 face="serif">A category in the Corporate Bonds and Preferred Securities sections may contain multiple industries as defined by the SEC&#146;s Standard Industry Codes.</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">23</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited) </FONT></B></P>
<P align="justify"><B><FONT face="serif">JUNE 30, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Preferred Opportunity Trust (BPP)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=5% nowrap style="border-bottom:1px solid #000000;">
<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% style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width=5% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=2% style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width=73% nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD width=7% style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width=6% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;145.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred Securities&#151;61.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Building &amp; Development&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">25,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hovnanian Enterprises, Inc., 7.625%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;560,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;0.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">20,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dairy Farmers of America, Inc., 7.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,928,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;4.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Devon Energy Corp., Ser. A, 6.49%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">501,719</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">115,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hanover Compressor Capital Trust, 7.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,123,405</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">275,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nexen, Inc., 7.35%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,883,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">180,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PPL Electric Utilities Corp., 6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,331,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,839,624</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;42.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">600</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ABN Amro NA, Inc., 6.46%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">606,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ACE Ltd., Ser. C, 7.80%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,790,640</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">242,414</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Arch Capital Group Ltd., 8.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,167,012</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Banesto Holdings Ltd., Ser. A, 10.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bear Stearns Co., Inc., Ser. E, 6.15%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,984,380</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chevy Chase Preferred Capital Corp., Ser. A, 10.375%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,187,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.35%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,960,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">23,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">(CORTS), 6.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">576,548</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">40,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Citigroup Capital X, 6.10%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">904,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">50,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Citigroup Capital XI, 6.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,112,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colonial Capital Trust IV, 7.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,004,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Credit Suisse First Boston (SATURNS),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">265,290</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">302,504</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Endurance Specialty Holdings Ltd., 7.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,233,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Everest RE Capital Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">72,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.85%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,841,957</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.20%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">634,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Financial Security Assurance Holdings Ltd., 5.60%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">324,672</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">First Republic Bank,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">185,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,382,187</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">277,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.70%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,973,326</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">120,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">First Republic Preferred Capital Corp., 7.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,896,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">85,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fleet Capital Trust VII, 7.20%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,118,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">26,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fleet Capital Trust VIII, 7.20%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">656,415</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Goldman Sachs Group, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">102,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">(SATURNS), 6.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,299,177</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.20%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,940,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">HSBC Holdings PLC, 6.20% (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,620,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">260,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">HSBC Bank, Inc., 6.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,404,629</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">76,700</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ING Groep NV, 7.05%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,929,488</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">J.P. Morgan Chase Capital XII, 6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,825,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">117,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">KeyCorp Capital V, 5.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,512,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kraft Foods, Inc. (CORTS), 5.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,124,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">113,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lehman Brothers Holdings Capital Trust III, Ser. K, 6.375%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,608,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">90,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lehman Brothers Holdings Capital Trust IV, Ser. L, 6.375%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,078,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">31,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lehman Brothers Holdings, Inc., Ser. D, 5.67%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,425,742</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">20,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Merrill Lynch Preferred Capital Trust III, 7.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">493,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">86,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Merrill Lynch Preferred Capital Trust V, 7.28%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,205,522</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">625,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">MetLife, Inc., Ser. B, 6.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,393,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">187,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Morgan Stanley Capital Trust III, 6.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,222,460</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Morgan Stanley Group, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.18%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,554,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">101,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">(PPLUS), 7.05%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,523,008</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">News Holdings Ltd. (CORTS), 8.125%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">181,584</FONT>&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">24</FONT></P>

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

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



<P align="justify">
<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 align="center" valign="bottom">
        <TD width="5%" nowrap style="border-bottom:1px solid #000000;">
<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%" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width="5%" nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width="2%" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width="73%" nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD width="7%" style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD width="6%" nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">209,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PartnerRE Ltd., Ser. C, 6.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 4,992,892</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">79,385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Phoenix Cos., Inc., 7.45%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,953,665</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">18,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PLC Capital Trust IV, 7.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">452,526</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">93,975</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Principal Financial Group, Inc., Ser. B, 6.518%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,499,735</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">82,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Prudential PLC, 6.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,983,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">RenaissanceRE Holdings Ltd. (Bermuda),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">271,725</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 7.30%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,640,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 6.08%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,186,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Roslyn Real Estate Asset Corp., Ser. C, 8.95%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,078,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">375,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Royal Bank of Scotland Group PLC ADR, Ser. N, 6.35%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,868,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Safeco Capital Trust (SATURNS), 8.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">594,751</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Safeco Corp. (CORTS),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.072%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">106,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.375%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">52,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">29,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">859,064</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">SLM Corp., Ser. A, 6.97%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">267,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">103,439</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Structured Repackaged Asset-Backed Trust Securities, 6.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,333,584</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Union Planters Preferred Funding Corp., 7.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,328,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">USB Capital VII, 5.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,232,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Valero Energy Corp. (PPLUS), 7.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">279,165</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">404,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wachovia Preferred Funding Corp., Ser. A, 7.25%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,640,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Washington Mutual, Inc. (CORTS), 7.65%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Zurich RegCaPS Funding Trust, 6.58%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,015,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">182,661,508</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;2.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">253,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AOL Time Warner, Inc. (CABCO), Ser. A-1, 7.625%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,390,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Comcast Corp., 2.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,964,257</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Media</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,355,032</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Real Estate&#151;12.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BRE Properties, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">225,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 6.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,247,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 6.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,867,504</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">238,888</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CarrAmerica Realty Corp., Ser. E, 7.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,017,589</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">120,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Developers Diversified Realty Corp., 7.375%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,955,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Duke Realty Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">90,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. J, 6.625%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,103,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">160,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. K, 6.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,693,383</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. M, 6.95%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,455,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">172,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kimco Realty Corp., Ser. F, 6.65%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,111,883</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mills Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 9.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,427,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">40,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. G, 7.875%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">255,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NB Capital Corp., 8.35%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,699,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">75,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Regency Centers Corp., 6.70%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,760,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sun Trust Real Estate Investment Corp., 9.00%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,723,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">320,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Weingarten Realty Investors, Ser. D, 6.75%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,846,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Real Estate</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">52,807,169</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">776,546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Superior Essex Holding Corp., Ser. A, 9.50%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">621,237</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Preferred Securities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">266,773,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Trust Preferred Securities&#151;26.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp; &nbsp;&nbsp; 3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">HL&amp;P Capital Trust II, 8.257%, 2/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,045,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,655</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">KN Capital Trust III, 7.63%, 4/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,896,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,941,440</FONT>&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">25</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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 align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;20.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 4,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AFC Capital Trust I, 8.207%, 2/03/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 4,546,029</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AgFirst Farm Credit Bank, 7.30%, 10/14/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,973,513</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,774</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AXA SA, 7.10%, 5/29/49 (France)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,674,068</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,557</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BNP Paribas Capital Trust V, 7.20%, 12/31/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,557,711</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colonial Capital Trust II, 8.92%, 1/15/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,160,409</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Credit Agricole Preferred Fund Trust II, 7.00%, 8/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,928,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Deutsche Bank Capital Funding Trust I, 7.872%, 12/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,718,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Deutsche Bank Capital Funding Trust VII, 5.628%, 1/19/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">13,834,455</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dresdner Funding Trust I, 8.151%, 6/30/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,126,852</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">FCB/NC Capital Trust I, 8.05%, 3/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,151,846</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mangrove Bay Pass-Through Trust, 6.102%, 7/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,534,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,145</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Markel Capital Trust I, 8.71%, 1/01/46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,285,794</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NBP Capital Trust III, 7.375%, 10/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,005,144</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sun Life of Canada U.S. Capital Trust I, 8.526%, 5/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,942,133</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Webster Capital Trust I, 9.36%, 1/29/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,296,359</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">87,736,073</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Real Estate&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,180</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sovereign Real Estate Investment Corp., 12.00%, 8/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,247,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Transportation&#151;1.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,660</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BNSF Funding Trust I, 6.613%, 12/15/55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,195,390</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Trust Preferred Securities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">113,120,403</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Corporate Bonds&#151;57.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Aerospace &amp; Defense&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Argo-Tech Corp., 9.25%, 6/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">133,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,615</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">DI Finance/DynCorp. Intl., 9.50%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,679,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Aerospace &amp; Defense</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,813,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Automotive&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Autonation, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.045%, 4/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">191,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 4/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">188,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">29,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lear Corp., 8.11%, 5/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">77,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Metaldyne Corp., 11.00%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">241,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Porsche Intl. Financing, 7.20%, 2/28/49 (Ireland)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,440,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,850</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rexnord Corp., 10.125%, 12/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,152,812</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Automotive</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,322,312</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Basic Materials&#151;1.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">70</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">63,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">940</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AK Steel Corp., 7.75%, 6/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">925,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.099%, 7/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">102,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chemtura Corp., 6.875%, 6/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">28,988</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">80</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Domtar, Inc., 7.125%, 8/15/15 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">69,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Donohue Forest Products, 7.625%, 5/15/07 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">202,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Huntsman LLC, 12.318%, 7/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">229,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,180</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,112,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lyondell Chemical Co.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.125%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,430,562</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">465</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 9.625%, 5/01/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">474,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">NewPage Corp., 10.00%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">310,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">470</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">470,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Basic Materials</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,419,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Building &amp; Development&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">260</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compression Polymers Corp., 10.50%, 7/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">263,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ERICO Intl. Corp., 8.875%, 3/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">306,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">695</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Goodman Global Holding Co., Inc., 7.875%, 12/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">672,412</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">179,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Building &amp; Development</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,422,412</FONT>&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">26</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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 align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Consumer Products&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 115</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ALH Finance LLC, 8.50%, 1/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp; 110,831</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">145</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Finlay Fine Jewelry Corp., 8.375%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125,787</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gold Kist, Inc., 10.25%, 3/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">114,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">140</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Knowledge Learning Corp., Inc., 7.75%, 2/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">128,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,260</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lazydays RV Center, Inc., 11.75%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,190,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">460</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Levi Strauss &amp; Co., 7.73%, 4/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">466,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quebecor World, Inc., 8.75%, 3/15/16 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">227,332</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Quiksilver, Inc., 6.875%, 4/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">276,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">325</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rite Aid Corp., 6.125%, 12/15/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">316,469</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Consumer Products</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,957,819</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Containers &amp; Packaging&#151;0.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">385</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">377,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">90</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Packaging Dynamics Finance Corp., 10.00%, 5/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">90,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">339,488</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Containers &amp; Packaging</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">806,788</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Ecological Services &amp; Equipment&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">290</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Allied Waste NA, Inc., 5.75%, 2/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">269,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Energy&#151;2.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AES Corp., 8.875%, 2/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,150,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Aquila Finance Corp., 7.75%, 6/15/11 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">243,225</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chaparral Energy, Inc., 8.50%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">218,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chesapeake Energy Corp., 6.875%, 11/15/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">27,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ChipPAC, Inc., 2.50%, 6/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">58,780</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">85</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CMS Energy Corp., 8.50%, 4/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">88,612</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">210</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">205,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Compton Petroleum Finance Corp., 7.625%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">329,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">710</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dresser, Inc., 9.375%, 4/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">720,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dynegy Danskammer LLC, 7.27%, 11/08/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">225</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edison Mission Energy, 7.50%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Grant Prideco, Inc., 6.125%, 8/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">92,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">280</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hilcorp Energy I LP/Hilcorp Finance Corp., 7.75%, 11/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">264,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Midwest Generation LLC, 8.56%, 1/02/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">18,734</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mirant Americas Generation LLC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.30%, 5/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">54,313</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 5/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">39,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orion Power Holdings, Inc., 12.00%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,348,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Reliant Energy, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 12/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">175,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">50</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 7/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">50,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Targa Resources, Inc., 8.50%, 11/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">405,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Whiting Petroleum Corp., 7.00%, 2/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">51,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Williams Cos., Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">505</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.75%, 3/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">552,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.125%, 9/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,000,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Energy</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">12,515,439</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Entertainment &amp; Leisure&#151;0.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">435</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Greektown Holdings LLC, 10.75%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">457,294</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">180</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pokagon Gaming Authority, 10.375%, 6/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">186,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poster Financial Group, Inc., 8.75%, 12/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">134,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130 </FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Pasqual Casino, 8.00%, 9/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">38,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Entertainment &amp; Leisure</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">946,619</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;42.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,605</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,4</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American General Institute Capital, 7.57%, 12/01/45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,696,102</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">415</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">398,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ameriprise Financial, Inc., 7.518%, 6/01/66</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,014,787</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BAC Capital Trust V, 5.625%, 3/08/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,316,940</FONT>&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">27</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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 align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Financial Institutions&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Barclays Bank PLC (United Kingdom),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp;5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.278%, 12/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; 4,365,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.375%, 6/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,514,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">204,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">920</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Crum &amp; Forster Holdings Corp., 10.375%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">936,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">E*Trade Financial Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.375%, 9/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.875%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">174,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,455</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,920,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">First Midwest Capital Trust I, 6.95%, 12/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,320,496</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ford Motor Credit Co., 7.25%, 10/25/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110,881</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">580</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">General Motors Acceptance Corp., 6.875%, 8/28/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">552,066</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">HBOS PLC, 5.92%, 9/29/49 (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,054,880</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">HSBC Bank NA, 5.875%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,342,021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">J.P. Morgan Chase Capital XVII, 5.85%, 8/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,411,034</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kingsway America, Inc., 7.50%, 2/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,926,535</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,800</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lincoln National Corp., 7.00%, 5/17/66</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,737,581</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,399</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lloyds Bank Ltd., 6.90%, 10/10/49 (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,232,523</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,216</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">MUFG Capital Finance 1 Ltd., 6.346%, 7/29/49 (Cayman Islands)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,925,071</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">540</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">519,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Prudential PLC, 6.50%, 6/29/49 (United Kingdom)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,513,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rabobank Capital Funding II, 5.26%, 12/31/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,389,530</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">RBS Capital Trust I, 5.512%, 9/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,715,616</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Reinsurance Group of America, Inc., 6.75%, 12/15/65</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,192,676</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Resparcs Funding Ltd., 8.00%, 12/30/49 (Hong Kong)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,064,937</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Skandinaviska Enskilda Banken AB (Sweden),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,185</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.958%, 3/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,401,260</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.471%, 3/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,553,985</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sovereign Capital Trust, 9.00%, 4/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,110,422</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Standard Aero Holding, Inc., 8.25%, 9/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">26,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,735</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Structured Asset Receivable Trust, 1.649%, 1/21/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,734,512</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sumitomo Mitsui Banking Corp., 5.625%, 7/29/49 (Japan)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,222,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UBS Preferred Funding Trust I, 8.622%, 10/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,939,190</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Universal City Florida Holding Co. I/II, 7.493%, 5/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">61,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wachovia Capital Trust III, 5.80%, 3/15/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,871,490</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Westpac Capital Trust IV, 5.256%, 12/29/49</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,684,568</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">ZFS Finance Trust I, 6.479%, 12/15/65</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,002,897</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Financial Institutions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">185,283,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Health Care&#151;0.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Angiotech Pharmaceutical, Inc., 7.75%, 4/01/14 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">211,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Select Medical Corp., 7.625%, 2/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">138,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">520</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Universal Hospital Services, Inc., 10.125%, 11/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">539,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Health Care</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">889,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Industrials&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">CCC+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,205</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trimas Corp., 9.875%, 6/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,096,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">225</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">United Rentals NA, Inc., 7.00%, 2/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">205,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Industrials</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,302,425</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;1.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">475</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Affinion Group, Inc., 10.125%, 10/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">476,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">230</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cablevision Systems Corp., 8.716%, 4/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">243,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dex Media West LLC/Dex Media Finance Co., 9.875%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,113,312</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Echostar DBS Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.75%, 10/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">195,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">75</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.125%, 2/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">71,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Emmis Operating Co., 6.875%, 5/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">29,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">LIN Television Corp., 6.50%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">182,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Medianews Group, Inc., 6.875%, 10/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">201,575</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Network Communication, Inc., 10.75%, 12/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">216,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nexstar Finance, Inc., 7.00%, 1/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300,300</FONT>&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">28</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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 align="center" valign="bottom">
        <TD width=5% nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% nowrap>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Media&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; 350</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Paxson Communications Corp., 8.757%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp; 352,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Primedia, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">90,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">280</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.165%, 5/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">286,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">719</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TCI Communications, Inc., 7.875%, 2/15/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">765,344</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vertis, Inc., 9.75%, 4/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">661,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Media</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,186,769</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Real Estate&#151;1.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rouse Co.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">3.625%, 3/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,635,489</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 11/26/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,800,645</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Real Estate</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,436,134</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Technology&#151;0.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">210</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Celestica, Inc., 7.625%, 7/01/13 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">203,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">120</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">127,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co. (Luxembourg),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.00%, 12/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">16,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">55</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.579%, 12/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">52,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">60</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">58,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sungard Data Systems, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">375</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.525%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">395,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">115</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.125%, 8/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">120,175</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">320</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">10.25%, 8/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">332,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">508,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">110</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">UGS Corp., 10.00%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">118,525</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Technology</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,933,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Telecommunications&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">290</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cincinnati Bell, Inc., 7.25%, 7/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">284,925</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">190</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">193,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Intelsat Ltd. (Bermuda),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">230</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.625%, 1/15/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">231,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">500</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.25%, 6/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">518,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">365</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.609%, 1/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">369,563</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">835</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">,3</font></sup>
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">11.64%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">851,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lucent Technologies, Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.45%, 3/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">21,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">185</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.50%, 1/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">154,938</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">845</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">868,237</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">80</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nortel Networks Corp., 6.875%, 9/01/23 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">64,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">PanAmSat Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 8/15/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">127,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">480</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">9.00%, 6/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">482,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Qwest Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">460</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.741%, 6/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">489,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,845</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.875%, 9/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,868,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">420</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">441,525</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Windstream Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">640</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.125%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">652,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">740</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">8.625%, 8/01/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">757,612</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Telecommunications</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,377,587</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Transportation&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">90</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">86,737</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">1,235</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hertz Corp., 8.875%, 1/01/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,265,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Horizon Lines LLC, 9.00%, 11/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">32,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,385,092</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Total Corporate Bonds</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">250,267,971</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;645,792,348)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">630,161,694</FONT>&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">29</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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="7%" align=center nowrap>&nbsp;</TD>
        <TD width="5%" align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="73%" align=left nowrap>&nbsp;

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

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

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENT&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">U.S. Government and Agency Zero Coupon Bond&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp; &nbsp;16,900</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Federal Home Loan Bank Disc. Notes, 4.872%, 7/03/06 (cost &#36;16,895,428)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp; 16,895,428</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total investments before borrowed bonds and investments sold short (cost &#36;662,687,775</FONT></B><B><SUP><FONT size=1 face="serif">7</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">647,057,122</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">BORROWED BONDS&#151;10.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">24,939</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">U.S. Treasury Bonds, 4.60%, 7/05/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">24,939,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">U.S. Treasury Notes,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,922</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.45%, 7/05/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,922,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,036</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.60%, 7/05/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,036,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Borrowed Bonds (cost &#36;43,897,469)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">43,897,469</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">INVESTMENTS SOLD SHORT&#151;(10.0)%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(24,125)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">U.S. Treasury Bonds, 5.375%, 2/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(24,528,339)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">U.S. Treasury Notes,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(10,400)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.50%, 2/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(9,893,000)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(8,900)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/16</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(8,887,485)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments Sold Short (proceeds &#36;43,125,134)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(43,308,824)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total investments net of borrowed bonds and investments sold short&#151;149.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 647,645,767</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.3%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,639,492</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(51.1)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(220,853,207</FONT><FONT size=1 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 432,432,052</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<hr align="left" noshade width="140" size="1">
<TABLE border=0 cellspacing=3 cellpadding=0>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">1</FONT></SUP>Using the higher of S&amp;P, Moody&#146;s or Fitch rating.</FONT></P> </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">2</FONT></SUP>Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30,
2006, the Trust held 38.7% of its net assets, with a current market value of &#36;167,266,451, in securities restricted as to resale.</FONT></P>        </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">3</FONT></SUP>Variable rate security. Rate shown is interest rate as of June 30, 2006.</FONT></P>   </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">4</FONT></SUP>Security, or a portion thereof, pledged as collateral with a value of &#36;2,799,763 on 328 short U.S. Treasury Bond futures contracts expiring September 2006. The notional value of such contracts on June
30, 2006 was &#36;34,983,250, with an unrealized gain of &#36;229,903.</FONT></P>       </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">5</FONT></SUP>Illiquid security. As of June 30, 2006, the Trust held 0.9% of its net assets, with a current market value of &#36;3,734,512 in these securities.</FONT></P>  </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">6</FONT></SUP>Rate shown is the yield to maturity as of June 30, 2006.</FONT></P>   </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">7</FONT></SUP>Cost for Federal income tax purposes is &#36;662,894,460. The net unrealized depreciation on a tax basis is &#36;15,837,338, consisting of &#36;6,447,997 gross unrealized appreciation and &#36;22,285,335
gross unrealized depreciation.</FONT></P>       </TD>
</TR>
<TR>
        <TD width=98%>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">8</FONT></SUP>The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.</FONT></P>      </TD>
</TR>
<TR><TD>&nbsp;</TD></TR></TABLE>
<P align="justify">
<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>
<DIV STYLE="border:1px solid black; width:100%; PADDING:2%">
<TABLE width="96%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="7" align=center nowrap>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>&nbsp;
        </TD>
        </TR>
<TR valign="bottom">
        <TD width=4% align=left nowrap>
<FONT size=1 face="serif">ADR</FONT>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=38% align=left nowrap>
<FONT size=1 face="serif">American Depository Receipt</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=5% align=left nowrap> <FONT size=1 face="serif">PPLUS</FONT>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=43% align=left nowrap>
<FONT size=1 face="serif">Preferred Plus</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">CABCO</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporate Asset Backed Corp.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=1 face="serif">SATURNS</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Structured Asset Trust Unit Repackagings</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">CORTS</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporate Backed Trust Securities</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
</TABLE>
</div>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">30</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>

<B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">June 30, 2006</FONT></B><font size="1">&nbsp;</font>
<BR>
<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="58%" align=left nowrap>&nbsp;

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

        </TD>
        <TD width="5%" align=center nowrap></TD>
        <TD colspan="2" align=center nowrap>
      <B><FONT size=2 face="serif">High</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

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

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

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

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

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

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

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

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

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

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

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

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

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

        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=2 face="serif">(BGT)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=2 face="serif">(HIS)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=2 face="serif">(BPP)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Assets</FONT></B>&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>

        </TD>
        <TD width="9%" align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD width="1%" align=left nowrap>

        </TD>
        <TD width="8%" align=left nowrap>

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">734,292,458</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">205,763,522</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">647,057,122</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments in affiliates</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,148</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,774</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,823</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">44,040</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,702</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,241,630</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Foreign currency at value</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,311,128</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">768</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Receivable from investments sold</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,504,318</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,485,569</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">550,941</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Deposits with brokers as collateral for borrowed bonds</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">43,897,469</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,260,716</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,952,915</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,742,050</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Unrealized appreciation on interest rate swaps</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,268,241</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other assets</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36,055</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26,449</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22,960</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">768,479,863</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">212,271,699</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">708,849,236</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreement</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,221,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable for investments purchased</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">45,044,791</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,339,189</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,744,610</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Variation margin payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">256,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">62,000,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments sold short at value</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">43,308,824</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">75,633</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">208,749</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">773,749</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Unrealized loss on foreign currency exchange contracts</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">622,421</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends payable&#151;common shares</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,118,179</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">328,877</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">124,616</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">354,815</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Deferred Trustees&#146; fees</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,148</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,774</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,823</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable to affiliates</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">43,492</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">187,305</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">158,718</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">56,906</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">77,554,667</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">72,954,225</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">55,563,977</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;0.001 par value per share and &#36;25,000 liquidation value per share,</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">including dividends payable</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">243,516,274</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">220,853,207</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">447,408,922</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">139,317,474</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">432,432,052</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Composition of Net Assets Applicable to Common Shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">23,481</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>

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

        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,327</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">444,771,968</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">402,537,649</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">434,050,370</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed (distribution in excess of) net investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,399,268</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,130,959</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,022,057</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(57,959</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(255,464,533</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,701,594</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation (depreciation)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,272,164</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,624,683</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,316,182</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, June 30, 2006</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">447,408,922</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">139,317,474</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">432,432,052</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19.05</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.55</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">

        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">23.60</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">732,049,806</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">212,388,241</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;
        </TD>
        <TD><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">662,687,775</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Foreign currency at cost</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,300,083</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">732</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Proceeds received</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">43,125,134</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,738</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,832</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">5 </FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">23,481,021</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">54,545,365</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,327,056</FONT>
        </TD>
        <TD align=left nowrap>&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">31</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>



<B><FONT face="serif">STATEMENTS OF OPERATIONS (unaudited)</FONT></B><BR>
<B><FONT face="serif">For the six months ended June 30, 2006</FONT></B><BR>

<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="59%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="9%" align=center nowrap> <B><FONT size=2 face="serif">Global</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="8%" align=center nowrap> <B><FONT size=2 face="serif">High</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="0%" align=center nowrap>&nbsp;</TD>
        <TD width="9%" align=center nowrap>
 &nbsp;<B><FONT size=2 face="serif">Preferred</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

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

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

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

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

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

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

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

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

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

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">(BGT)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">(HIS)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">(BPP)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">23,857,605</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,575,491</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,748,971</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividend income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,902</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,113,141</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from affiliates</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,025</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">164</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,367</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23,858,630</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,649,557</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21,864,479</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,639,826</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">760,054</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,155,326</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,917</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">211,617</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">34,991</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">69,553</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">51,136</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">42,399</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">52,674</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,134</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,046</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,203</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,201</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,032</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,201</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,865</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,080</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,666</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">42,837</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,612</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">42,808</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">23,305</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,087</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,819</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction agent</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">320,445</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">286,412</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees&#146; fees</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,025</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">164</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,367</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40,322</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">50,028</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">31,092</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,394,134</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">968,410</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,723,542</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest expense</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">380,999</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,607,925</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">61,077</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,775,133</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,576,335</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,784,619</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(703,954</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(25,996</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(5,231</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(11,780</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,045,183</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,571,104</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,772,839</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20,813,447</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,078,453</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19,091,640</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(150,086</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(987,272</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,126,201</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Foreign currency</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">366,606</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(108,959</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures and swaps</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,608,374</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Short sales</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,569,414</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">216,520</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,096,231</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,303,989</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,595,606</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,518,478</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(27,998,525</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Foreign currency</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,171,407</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(35,854</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures and swaps</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,620,582</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Short sales</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(92,078</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,767,013</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,554,332</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(18,470,021</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net loss</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,550,493</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,650,563</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(14,166,032</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends from Net Investment Income to</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(5,336,499</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4,939,342</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Increase (Decrease) in Net Assets</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Applicable to Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Resulting from Operations</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11,926,455</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">3,427,890</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(13,734</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)</FONT>&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">32</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>



<B><FONT face="serif">STATEMENTS OF CASH FLOWS (unaudited)</FONT></B><BR>
<B><FONT face="serif">For the six months ended June 30, 2006</FONT></B><BR>
<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="58%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="9%" align=center nowrap>
<B><FONT size=2 face="serif">Global</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="8%" align=center nowrap>
<B><FONT size=2 face="serif">High</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="9%" align=center nowrap>
<B><FONT size=2 face="serif">Preferred</FONT></B>
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Reconciliation of Net Increase (Decrease) in Net Assets</FONT></B>&nbsp;
        </TD>
        <TD align=center nowrap>&nbsp;</TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Floating Rate</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Resulting from Operations to Net Cash</FONT></B>&nbsp;
        </TD>
        <TD align=center nowrap>&nbsp;</TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Income Trust</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Provided by (Used for) Operating Activities</FONT></B>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(BGT)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">(HIS)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=2 face="serif">(BPP)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) in net assets resulting from operations</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11,926,455</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,427,890</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(13,734</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Purchases of long-term investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(279,098,282</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(91,765,720</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(386,348,040</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Proceeds from sales of long-term investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">230,495,362</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">96,353,214</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">376,875,454</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net proceeds (purchases) of short-term investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24,665,656</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(7,392,730</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,584,615</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in deposits with brokers as collateral for borrowed bonds</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(31,774,206</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Amortization of premium and discount on investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">541,350</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">176,032</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">375,639</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net realized loss (gain) on investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">150,086</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">987,272</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,126,201</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Decrease in unrealized appreciation/depreciation on investments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,595,606</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,518,478</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,998,525</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net effect of exchange rates on foreign currency</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(366,606</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">108,959</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in investments sold short</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,206,635</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in unrealized appreciation on interest rate swaps</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(7,905,714</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in investments in affiliates</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(5,524</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,893</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,854</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in receivable for investments sold</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(15,780,576</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,485,569</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(550,941</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Decrease in unrealized gain on foreign currency exchange contracts</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">388,125</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">35,926</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Decrease in variation margin receivable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">158,501</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Decrease (Increase) in interest receivable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,564,676</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">322,374</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(927,362</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in other assets</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(16,812</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(20,470</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,783</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in payable for investments purchased</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,820,172</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,339,189</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,744,610</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in unrealized loss on foreign currency exchange contracts</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">415,252</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in variation margin payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">256,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in interest payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">75,633</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,036</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">652,241</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase (Decrease) in investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,325</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,349</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(13,840</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in deferred Trustees&#146; fees</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,524</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,893</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,854</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase in payable to affiliates</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,147</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Increase (Decrease) in other accrued expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21,455</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(76,101</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(69,592</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Total adjustments</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(28,647,783</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,108,541</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16,963,561</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net cash provided by (used for) operating activities</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(16,721,328</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">10,536,431</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16,949,827</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net cash provided by (used for) operating activities</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(16,721,328</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,536,431</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16,949,827</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Cash provided by (used for) financing activities:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Capital contributions</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">136,555</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">521,174</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Increase in reverse repurchase agreements</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,221,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Decrease in loan payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,000,000</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Decrease in preferred shares at redemption value including</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">dividends payable</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(20,992</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(24,801</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash dividends paid to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(16,436,714</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,703,213</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(18,316,299</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net cash provided by (used for) financing activities:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14,763,294</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(10,566,658</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(17,819,926</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net decrease in cash and foreign currency</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,958,034</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(30,227</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(870,099</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash and foreign currency at beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,313,202</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">68,697</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,111,729</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash and foreign currency at end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2,355,168</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">38,470</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1,241,630</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&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">33</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>



<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS</FONT></B><BR>
<B><FONT face="serif">For the six months ended June 30, 2006 (unaudited) and the year ended December 31, 2005</FONT></B><BR>
<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=51% align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap colspan=6>
<B><FONT size=2 face="serif">Global Floating Rate</FONT></B>
        </TD>
        <TD width=1% align=center nowrap>&nbsp;

        </TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=6>
<B><FONT size=2 face="serif">High Income</FONT></B>
        </TD>
        <TD width=1% align=center nowrap>&nbsp;

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

        </TD>
        <TD align=center nowrap colspan=6>
<B><FONT size=2 face="serif">Income Trust</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=6>
<B><FONT size=2 face="serif">Shares</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

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

        </TD>
        <TD align=center nowrap colspan=6 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(BGT)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=6 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(HIS)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=7% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2006</FONT></B>
        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=8% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2005</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=7% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2006</FONT></B>
        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD width=4% align="center">&nbsp;
        </TD>
        <TD width=1% align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=7% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2005</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">to Common Shareholders:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,813,447</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,524,476</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,078,453</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,001,428</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">216,520</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(733,873</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,096,231</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(643,102</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized depreciation</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,767,013</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,318,879</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,554,332</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(11,571,661</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(5,336,499</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(7,702,674</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(22,268</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) in net assets applicable to common</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11,926,455</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26,746,782</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,427,890</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">786,665</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends and Distributions to Common</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(13,736,397</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(28,572,525</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,704,279</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(14,468,525</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(164,417</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(13,736,397</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(28,736,942</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,704,279</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(14,468,525</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Offering costs relating to preferred shares</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">81,708</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">136,555</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">840,842</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total decrease</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,809,942</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,908,452</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,139,834</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(12,841,018</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Beginning of period</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">449,218,864</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">451,127,316</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">142,457,308</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">155,298,326</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">447,408,922</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">449,218,864</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">139,317,474</font></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">142,457,308</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of period undistributed (distribution in excess of) net</FONT>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,399,268</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap><font size=2 face="serif">(341,283</font></TD>
        <TD align=left nowrap><font size=2 face="serif">)</font></TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,130,959</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(505,133</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="140" size="1">
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=1 face="serif">1</FONT></SUP> </TD>
        <TD>
<P align="justify"><FONT size=1 face="serif">A portion of the dividend from net investment income for the six months ended June 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.</FONT></P>      </TD>
</TR>
<TR><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">34</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>

<br>
<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<TABLE width="20%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD colspan=7>
<B><FONT size=2 face="serif">Preferred</FONT></B>
        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD colspan=7>
<B><FONT size=2 face="serif">Opportunity Trust</FONT></B>
        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(BPP)</FONT></B>
        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD width=2% nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=33% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2006</FONT></B>
        </TD>
        <TD width=6% nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD width=20%>&nbsp;
        </TD>
        <TD width=3% nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD width=31% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2005</FONT></B>
        </TD>
        <TD width=5% nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,091,640</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font></div></TD>
        <TD align=right nowrap><font size=2 face="serif">38,669,601</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,303,989</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,371,550</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,470,021</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(17,454,454</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,939,342</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,681,820</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,471,709</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(13,734</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16,433,168</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(15,265,330</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(31,788,280</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(11,272,655</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(15,265,330</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(43,060,935</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,740</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">521,174</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(14,757,890</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(26,619,027</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">447,189,942</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">473,808,969</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">432,432,052</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">447,189,942</font></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,022,057</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">90,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<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="50%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="10%" align=center nowrap>
<B><FONT size=2 face="serif">Six Months</FONT></B>
        </TD>
        <TD width="2%" align=center nowrap>&nbsp;

        </TD>
        <TD width="4%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="11%" align=center nowrap>
<B><FONT size=2 face="serif">For the Year</FONT></B>
        </TD>
        <TD width="2%" align=center nowrap>&nbsp;

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

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

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

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

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

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

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

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

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

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2005</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=2 face="serif">December 31, 2004</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER SHARE OPERATING PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>

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

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

        </TD>
        <TD align=center nowrap>

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

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

        </TD>
        <TD width="12%" align=center nowrap>

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19.13</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19.21</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19.10</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.64</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.33</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><sup><font size=2 face="serif">3</font></sup>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.58</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><sup><font size=2 face="serif">3</font></sup>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.58</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.22</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.37</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

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

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

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19.05</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19.13</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19.21</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">18.96</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17.16</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">18.63</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><SUP><FONT size=2 face="serif">4</FONT></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(1.34</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(5.00</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:</FONT></B><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.68</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.56</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.36</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.19</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9.29</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.52</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.38</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.71</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.91</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.81</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.42</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">451,931</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">452,179</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">446,660</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">447,409</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">449,219</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">451,126</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares outstanding (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">243,450</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">243,450</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">243,450</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,221</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements average daily balance (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,891</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,722</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">114</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements weighted average interest rate</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.27</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.24</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">74,158</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,139</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,330</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="140" size="1">

<table width="100%"  border="0" cellspacing="3" cellpadding="0">
  <tr align="left" valign="top">
    <td width="98%"><font size=1 face="serif"><sup><font size=1 face="serif">1</font></sup>Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. </font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size=1 face="serif"><sup><font size=1 face="serif">2</font></sup>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 align="left" valign="top">
    <td><font size=1 face="serif"><sup><font size=1 face="serif">3</font></sup>Amounted to less than &#36;0.01 per common share outstanding.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size=1 face="serif"><sup><font size=1 face="serif">4 </font></sup>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 align="left" valign="top">
    <td><font size=1 face="serif"><sup><font size=1 face="serif">5</font></sup>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 align="left" valign="top">
    <td><font size=1 face="serif"><sup><font size=1 face="serif">6</font></sup>Annualized.</font></td>
  </tr>
</table>
<P align="justify"><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">36</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock High Income Shares (HIS)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="31%" align=left nowrap>&nbsp;

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

        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="6%" align=center nowrap>

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

        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="6%" align=center nowrap>

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

        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="6%" align=center nowrap>

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

        </TD>
        <TD width="3%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="6%" align=center nowrap>

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

        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="7%" align=center nowrap>

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

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

        </TD>
        <TD colspan="2" align=center nowrap>
      <B><FONT size=2 face="serif">June 30, 2006</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="18" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Year Ended December 31,</FONT></B>&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=2 face="serif">(unaudited)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=2 face="serif">2005</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2004</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2003</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2001</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="9%" align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.61</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.87</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.86</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.42</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3.05</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3.88</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.11</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.24</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.28</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap><sup><font size=2 face="serif">2</font></sup>

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.32</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap><sup><font size=2 face="serif">2</font></sup>

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.36</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap><sup><font size=2 face="serif">2</font></sup>

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.55</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.62</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.81</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) from investment</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">operations</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.06</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.01</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.31</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.72</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.26</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.26</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends and distributions from:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.27</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.30</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.28</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.29</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.57</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Tax return of capital</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.27</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.30</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.28</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.37</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.57</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.55</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.61</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.87</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.86</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.42</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">3.05</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.64</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.33</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.90</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.87</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2.32</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">3.36</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">18.78</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(11.28</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">12.24</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">37.23</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(21.23</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(6.85</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=24>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.63</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.21</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.53</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.43</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.62</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.21</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.53</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.43</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.36</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.39</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.49</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.56</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.82</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9.70</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13.29</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15.56</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=24>&nbsp;

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">143,171</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">147,376</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">152,815</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">143,397</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">144,665</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">174,851</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">115</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">56</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">93</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">134</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">82</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">139,317</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">142,457</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">155,298</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">154,298</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">129,538</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">161,693</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Loan outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">62,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">66,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">69,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">68,000</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">51,000</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,800</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage, end of period</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,247</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,158</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,251</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,269</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,540</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,191</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Loan average daily balance (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">63,326</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">65,992</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,081</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">60,604</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap><font size=2 face="serif">68,577</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">74,023</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Loan weighted average interest rate</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.59</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.01</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.20</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="140" size="1">
<TABLE width="100%" border=0 cellpadding=0 cellspacing=3>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">1</FONT></SUP>Audited by other Independent Registered Public Accounting Firm.</FONT></P>    </TD>
</TR>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">2</FONT></SUP>Net investment income per share has been recalculated in accordance with SEC requirements, with the exception that end-of-the-year accumulated undistributed/(overdistributed) net investment income has not
been adjusted to reflect current-year permanent differences between financial and tax accounting.</FONT></P>    </TD>
</TR>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">3</FONT></SUP>A portion of the dividends from net investment income for the six months ended June 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.</FONT></P>        </TD>
</TR>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">4</FONT></SUP>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 rates obtained under the Trust dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee
of future results.</FONT></P>   </TD>
</TR>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">5</FONT></SUP>Annualized.</FONT></P>        </TD>
</TR>
<TR>
        <TD>
<P align="justify"><FONT size=1 face="serif"><SUP><FONT size=1 face="serif">6</FONT></SUP>Per &#36;1,000 of loan outstanding.</FONT></P>        </TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="98%">
      <P align="justify"><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></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <P align="justify"><FONT size=1 face="serif">The performance set forth in this table is the financial data of BlackRock High Income Shares (formerly CIGNA High Income Shares). BlackRock began managing CIGNA High Income Shares on March 2, 2005.</FONT></P></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">37</FONT></P>

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

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


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<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=43% align=left nowrap>&nbsp;

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

        </TD>
        <TD width=9% align=left nowrap>

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

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>

        </TD>
        <TD width=6% align=left nowrap>

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

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=9% align=left nowrap>

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

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="3" align=center nowrap>
      <B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD colspan="2" align=center nowrap>
      <B><FONT size=1 face="serif">Six Months Ended</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

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

        </TD>
        <TD align=center nowrap>

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

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

        </TD>
        <TD align=center nowrap>

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

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="3" align=center nowrap>
<B><FONT size=1 face="serif">February 28, 2003</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD colspan="2" align=center nowrap>
      <B><FONT size=1 face="serif">June 30, 2006</FONT></B>
        </TD>
        <TD align=center nowrap>&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=center nowrap colspan=5 style="border-bottom:1px solid #000000;"> <B><FONT size=1 face="serif">Year Ended December 31,</FONT></B>&nbsp; &nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="3" align=center nowrap>
      <B><FONT size=1 face="serif">through</FONT></B>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="serif">(unaudited)</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">2005</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">2004</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD colspan="3" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="serif">December 31, 2003</FONT></B>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER SHARE OPERATING PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD width=8% align=left nowrap>

        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24.43</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25.88</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25.58</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23.88</FONT><SUP></SUP>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.11</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.77</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.82</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.27</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.37</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3.55</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.83</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.74</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.66</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.61</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.83</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2.35</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2.07</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.66</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

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

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

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

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

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

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

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

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.19</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23.60</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24.43</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25.88</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25.58</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">24.72</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">24.20</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25.39</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">24.83</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">6.43</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">4.83</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11.01</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">6.28</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

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

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

        </TD>
        <TD align=left nowrap>

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">OF COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.51</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.51</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net expenses excluding interest expense</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.19</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.65</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.66</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.35</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.24</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.48</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.41</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.10</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.87</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">445,210</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">461,868</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap><font size=2 face="serif">468,110</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">449,345</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">52</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">77</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">88</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">98</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">432,432</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">447,190</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap><font size=2 face="serif">473,809</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">468,243</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">220,800</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">220,800</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap><font size=2 face="serif">220,800</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">220,841</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif"> &#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,486</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements average daily balance (000)</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,605</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,904</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">782</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,822</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Reverse repurchase agreements weighted average interest rate</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.73</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.07</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,968</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">75,642</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap><font size=2 face="serif">78,650</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">78,021</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE><BR>
<hr align="left" noshade width="140" size="1">

<table width="100%"  border="0" cellspacing="3" cellpadding="0">
  <tr>
    <td><sup><font size=1 face="serif">1 </font></sup><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. </font></td>
  </tr>
  <tr>
    <td><font size=1 face="serif"><sup>2 </sup>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>
    <td><font size=1 face="serif"><sup>3 </sup>A portion of the dividends from net investment income for the six months ended June 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.</font></td>
  </tr>
  <tr>
    <td><font size=1 face="serif"><sup>4 </sup>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>
    <td><sup><font size=1 face="serif">5 </font></sup><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>
    <td><sup><font size=1 face="serif">6 </font></sup><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>
<P align="justify"><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">38</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>



<B><FONT face="serif">NOTES TO FINANCIAL STATEMENTS</FONT></B><br>
<div style="border-bottom:1px solid #000000"><font size="1">&nbsp;</font></div>
<br>
<P align="justify">
<B><FONT face="serif">Note 1. Organization</FONT></B> <B><FONT face="serif">&amp; Accounting Policies</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">BlackRock High Income Shares (&#147;High Income&#148;) (formerly CIGNA High Income Shares), a Massachusetts business trust, is registered as a diversified, closed-end management investment company under the Investment
Company Act of 1940, as amended (the &#147;1940 Act&#148;). BlackRock Global Floating Rate Income Trust (&#147;Global&#148;) </FONT><FONT size=2 face="serif">and BlackRock Preferred Opportunity Trust (&#147;Preferred Opportunity&#148;) are organized as Delaware statutory trusts and are registered as non-diversified and diversified, closed-end management investment companies,
respectively, under the 1940 Act. Global, High Income and Preferred Opportunity are individually referred to as a &#147;Trust&#148; and collectively as the &#147;Trusts&#148;.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under the Trusts&#146; organizational documents, their officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In
addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts&#146; maximum exposure under these arrangements are unknown as this would involve future
claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P align="justify">
<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 of Trustees (each a &#147;Board&#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. Swap quotations are provided by dealers selected under the supervision of the Board. Short-term securities may be valued at amortized cost. Investments in
open-end investment companies are valued at net asset value. Investments or 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 the Board.</FONT></P>
<P align="justify">
&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 the investment advisor and/or sub-advisor deems relevant.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Investment Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investment transactions are recorded on the trade date. The cost of investments sold and the related gain or loss is determined by use
of a specific identification method, generally first-in, first out, for both financial reporting and Federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities
purchased using the interest method.</FONT></P>
<P align="justify">
<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 align="justify">
<B><FONT size=2 face="serif">Reverse Repurchase Agreements: </FONT></B><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.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Loan Payable: </FONT></B><FONT size=2 face="serif">High Income has an &#36;80 million revolving credit agreement (the &#147;Agreement&#148;), which expires on October 31, 2007. Prior to expiration of the Agreement,
principal is repayable in whole or in part at the option of the Trust. Borrowings under this Agreement bear interest at a variable rate tied to the lender&#146;s average daily cost of funds, or at fixed rates, as may be agreed to between the Trust
and the lender. The Trust may borrow up to 33</FONT><FONT size=1 face="serif"><SUP>1</SUP>/<SUB>3</SUB></FONT><FONT size=2 face="serif">% of its total assets up to the committed amount or 100% of the borrowing base eligible assets, as determined
under the terms of the Agreement. In accordance with the terms of the Agreement, the Trust has pledged its portfolio assets as collateral for the borrowing.</FONT></P>
<P align="justify">
<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.</FONT></P>
<P align="center">
<FONT size=2 face="serif">39</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">Credit Default Swaps: </FONT></B><FONT size=2 face="serif">Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to
make a specific payment should a negative credit event take place. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.</FONT></P>
<P align="justify">
&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 align="justify">
&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 Advisor of the Trusts monitor swaps and do not anticipate non-performance by
any counterparty. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Total Return Swaps: </FONT></B><FONT size=2 face="serif">Total return swaps are agreements in which one party commits to pay interest in exchange for a market-linked return. To the extent the total return of the security
or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Trust will receive a payment from or make a payment to the counterparty. </FONT></P>
<P align="justify">
&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 align="justify">
&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 Advisor of the Trusts monitor swaps and do not anticipate non-performance by
any counterparty.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Interest Rate Swaps: </FONT></B><FONT size=2 face="serif">Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the
same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. 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 align="justify">
&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 align="justify">
&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 Advisor of the Trusts monitor swaps and do not anticipate non-performance by
any counterparty. </FONT></P>
<P align="justify">
<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. 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. 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 align="justify">
<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 marking-to-market 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 align="justify">
&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 align="justify">
<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 align="justify">
&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 align="center">
<FONT size=2 face="serif">40</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<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="2%" valign=top nowrap>&nbsp;</TD>
        <TD width="2%" valign=top nowrap>
<FONT size=2 face="serif">(i)</FONT> </TD>
        <TD width=96%>
<P align="justify"><FONT size=2 face="serif">market value of investment securities, assets and liabilities at the current rates of exchange.</FONT></P> </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)&nbsp;&nbsp;</FONT> </TD>
        <TD>
<P align="justify"><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></P>        </TD>
</TR>
</TABLE>
<P align="justify">
&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 align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized and unrealized foreign exchange gains and losses includes 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 align="justify">
&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 align="justify">
<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 align="justify">
<B><FONT size=2 face="serif">Bonds Borrowed Agreements: </FONT></B><FONT size=2 face="serif">In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an
agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trust&#146;s third-party broker takes possession of the underlying collateral securities or cash to settle such
short positions. The value of the underlying collateral securities or cash approximates the principal amount of the bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed transactions exceed one business day, the
value of the collateral with any counterparty is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the lender defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to
the lender of the security, realization of the collateral by the Trust may be delayed or limited.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (the &#147;Commission&#148;) require a Trust to segregate assets
in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records
cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.</FONT></P>
<P align="justify">
<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 have been recorded. </FONT></P>
<P align="justify"><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, if necessary, other sources. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed
  in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting
  principles generally accepted in the United States of America.</FONT></P>
<P align="justify">
<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 and such differences may be material.</FONT></P>
<P align="justify">
<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.
These amounts are shown on the Statements of Assets and Liabilities as &#147;Investments in affiliates.&#148; This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.</FONT></P>
<P align="justify">
&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 align="justify">
<B><FONT size=2 face="serif">Other: </FONT></B><FONT size=2 face="serif">Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of
relative net assets of all of the BlackRock closed-end funds.</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 2. Agreements</FONT></B></P>
<P align="justify">
<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., (&#147;BFM&#148;), a wholly owned
sub</FONT><FONT size=2 face="serif">sidiary of BlackRock, Inc., serves as sub-advisor to the Trusts. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc. The Investment Management Agreements for the Trusts covers
both investment advisory and administration services.</FONT></P>
<P align="center">
<FONT size=2 face="serif">41</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Effective March 2, 2005, High Income entered into an Investment Management Agreement with the Advisor, and a sub-advisory agreement with BFM. Prior to March 2, 2005, High Income had an
Investment Management Agreement with CIGNA Investment Advisors, Inc. (&#147;CIAI&#148;) and a sub-advisory agreement with Shenkman Capital Management, Inc.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 0.75% of Global&#146;s weekly net assets. The investment advisory fee
paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 0.65% of Preferred Opportunity&#146;s average weekly managed assets. &#147;Managed assets&#148; means the total assets of a Trust (including any assets
attributable to any borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The investment advisory fee paid to the Advisor (and CIAI prior to March 2, 2005) is computed weekly and
payable monthly based on an annual rate equal to 0.75% of the first &#36;200 million of High Income&#146;s average weekly managed assets and 0.50% thereafter. The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or
other expenses on Global as a percentage of its average weekly managed assets as follows: 0.20% for the first five years of the Trust&#146;s operations (through August 30, 2009), 0.15% in year six (through August 30, 2010), 0.10% in year seven
(though August 30, 2011) and 0.05% in year eight (through August 30, 2012).</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Advisor pays BFM fees for its sub-advisory services.</FONT></P>
<P align="justify">
&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. Prior to March 2, 2005, for administrative services, High Income reimbursed CIAI for a portion of the compensation and related expenses of the Trust&#146;s Treasurer and Secretary and certain persons who
assisted in carrying out the responsibilities of those offices. For the six months ended June 30, 2006, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:</FONT></P>
<TABLE width="35%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=19% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=48% align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD width=15%>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;    </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD width=15% align=right nowrap>
<FONT size=2 face="serif">17,309</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,679</FONT>&nbsp;
        </TD>
</TR>
</TABLE>

<P align="justify">
&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. These
credits are shown in the Statement of Operations as &#147;fees paid indirectly.&#148;</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 3. Portfolio</FONT></B> <B><FONT face="serif">Investments</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the six months ended June 30, 2006 aggregated as follows:</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=13% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=32% align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp; </TD>
        <TD width=10% align="center">&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;     </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD width=16% align=right nowrap>
<FONT size=2 face="serif">279,098,282</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD width=16% align=right nowrap>
<FONT size=2 face="serif">230,495,362</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">91,765,720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">96,353,214</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">268,328,083</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">254,710,994</FONT>&nbsp;
        </TD>
</TR>
</TABLE>

<P align="justify">
<FONT size=2 face="serif">Purchases and sales of U.S. government securities for the six months ended June 30, 2006 aggregated as follows:</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=13% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=32% align=left nowrap style="border-bottom:1px solid #000000;"></TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=19% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
        </TD>
        <TD width=10% align="center">&nbsp;
        </TD>
        <TD width=18% align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 <font size=2 face="serif">&#36;</font><FONT size=2 face="serif">80,614,203</FONT>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<font size=2 face="serif">&#36;</font><FONT size=2 face="serif">84,753,950</FONT>&nbsp;
        </TD>
</TR>
</TABLE>

<P align="justify">
<FONT size=2 face="serif">Details of open forward currency contracts held in Global at June 30, 2006 were as follows: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width="17%" nowrap>&nbsp;

        </TD>
        <TD width="6%">&nbsp;
        </TD>
        <TD width="11%" nowrap>&nbsp;

        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="1%" nowrap>&nbsp;</TD>
        <TD width="10%" nowrap>
 &nbsp;<B><FONT size=2 face="serif">Contract to</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="1%" nowrap>&nbsp;</TD>
        <TD width="10%" nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="1%" nowrap>&nbsp;</TD>
        <TD width="9%" nowrap>
<B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="0%" nowrap></TD>
        <TD width="10%" nowrap>

        </TD>
        <TD width="1%" nowrap>&nbsp;

        </TD>
    <TD width="7%" nowrap>&nbsp;</TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap>
<B><FONT size=2 face="serif">Foreign</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Settlement</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;</TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Sell/</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;</TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Settlement</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;</TD>
        <TD nowrap>
<B><FONT size=2 face="serif">June 30,</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>&nbsp;</TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Unrealized</FONT></B>
        </TD>
        <TD nowrap>&nbsp;

        </TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Currency</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Deliver</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">2006</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Depreciation</FONT></B>
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
    <TD nowrap style="border-bottom:1px solid #000000;"></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Sold:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap></TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
    <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Swiss Franc</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7/20/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,500,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,435,484</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,509,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(73,756</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
    <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Euro</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7/20/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="sans-serif">&#128;</font></TD>
        <TD align=right nowrap><FONT size=2 face="serif">38,197,220</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">48,410,257</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">48,926,349</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(516,092</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
    <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">British Pound</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7/20/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#163;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,000,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,689,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap> <FONT size=2 face="serif">3,700,953</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(11,713</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
    <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Mexican Peso</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7/20/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,517,417</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,874,362</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap> <FONT size=2 face="serif">1,895,222</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(20,860</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(622,421</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"></TD>
</TR>
</TABLE>
<P align="justify">
<FONT size=2 face="serif">Details of open interest rate swaps held in Preferred Opportunity at June 30, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width="12%" nowrap>
<B><FONT size=2 face="serif">Notional</FONT></B>
        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="7%" nowrap>

        </TD>
        <TD width="5%" nowrap>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="14%" nowrap>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="14%" nowrap>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="14%" nowrap>&nbsp;

        </TD>
    <TD width="14%" nowrap>&nbsp;</TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" nowrap>
<B><FONT size=2 face="serif">Fixed</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Floating</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Termination</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap>
<B><FONT size=2 face="serif">Unrealized</FONT></B>&nbsp;
        </TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR align="center" valign="bottom">
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rate (a)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rate</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
        </TD>
    <TD nowrap style="border-bottom:1px solid #000000;"></TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=2 face="serif">80,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.495</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3-month LIBOR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">10/19/14</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;6,456,540</FONT>&nbsp;
        </TD>
    <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=2 face="serif">65,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.118</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3-month LIBOR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">11/10/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&nbsp; 2,811,701</FONT>&nbsp;
        </TD>
    <TD align=center nowrap style="border-bottom:1px solid #000000;"></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;9,268,241</FONT>&nbsp;
        </TD>
    <TD align=center nowrap style="border-bottom:3px double #000000;"></TD>
</TR>
</TABLE>
<P align="justify">
<FONT size=2 face="serif">(a) Preferred Opportunity pays fixed interest rate and receives floating rate.</FONT></P>
<P align="center">
<FONT size=2 face="serif">42</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">Note 4. Borrowings</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">Details of open reverse repurchase agreements held in Global at June 30, 2006 were as follows (please see corresponding Underlying Collateral Chart below):</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="22%" align=left nowrap>&nbsp;

        </TD>
        <TD width="10%">&nbsp;
        </TD>
        <TD width="5%" align=center nowrap>

        </TD>
        <TD width="3%" align=center nowrap>&nbsp;

        </TD>
        <TD width="4%" align="center">&nbsp;
        </TD>
        <TD width="10%" align=center nowrap>
<B><FONT size=2 face="serif">Trade</FONT></B>&nbsp;
        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="12%" align=center nowrap>
<B><FONT size=2 face="serif">Maturity</FONT></B>&nbsp;
        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="9%" align=center nowrap>
<B><FONT size=2 face="serif">Net Closing</FONT></B>&nbsp;
        </TD>
        <TD width="5%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;

        </TD>
        <TD width="8%" align=center nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Counter Party</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rate</FONT></B>
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Par</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Credit Suisse Securities LLC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.250</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/05/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/06/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,431,947</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,403,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.330</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/12/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/06/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,295,261</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,291,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.420</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/12/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/26/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,888,427</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,876,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.300</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/13/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/06/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,202,014</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,133,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.300</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/15/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/06/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,412,586</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,409,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
 &nbsp;<FONT size=2 face="serif">6/30/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap> <FONT size=2 face="serif">7/07/06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,114,464</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,109,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">31,221,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">Details of underlying collateral for open reverse repurchase agreements held in Global at June 30, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="19%" align=left nowrap>&nbsp;

        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="23%" align=left nowrap>&nbsp;

        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="5%" align=left nowrap>

        </TD>
        <TD width="3%" align=left nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="8%" align=center nowrap>
<B><FONT size=2 face="serif">Maturity</FONT></B>&nbsp;
        </TD>
        <TD width="2%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="7%" align=center nowrap> <B><FONT size=2 face="serif">Original</FONT></B>&nbsp;
        </TD>
        <TD width="4%" align="center">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="7%" align=center nowrap> <B><FONT size=2 face="serif">Current</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="1%" align=center nowrap>&nbsp;</TD>
        <TD width="7%" align=center nowrap>
<B><FONT size=2 face="serif">Market</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Counter Party</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Face</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Face</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Credit Suisse Securities LLC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Bowater, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.910</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">03/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,040,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,040,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,055,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Malaysia</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.750</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">06/01/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">858,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Pemex Project Funding Master Trust</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9.375</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">12/02/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">858,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Republic of South Africa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.375</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">04/25/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,502,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Republic of Chile</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.875</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">04/28/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,469,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Rouse Co.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.375</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">11/26/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,350,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,350,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,717,047</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Ukraine</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.365</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">08/05/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,900,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,900,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,560,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">United Mexican States</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.750</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">01/13/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,800,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,834,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">33,855,197</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<B><FONT face="serif">Note 5. Income Tax</FONT></B> <B><FONT face="serif">Information</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">The tax character of distributions paid during the year ended December 31, 2005 were as follows:</FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="33%" align=left nowrap>&nbsp;

        </TD>
        <TD width="8%">&nbsp;
        </TD>
        <TD width="14%" align=center nowrap>
 &nbsp;<B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
        </TD>
        <TD width="7%" align="center">&nbsp;
        </TD>
        <TD width="14%" align=center nowrap>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD width="6%" align="center">&nbsp;
        </TD>
        <TD width="18%" align=center nowrap>
<B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 <font size=2 face="serif">&#36;</font><FONT size=2 face="serif">36,326,312&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp; &nbsp; &nbsp;135,572&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;36,461,884</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp;<FONT size=2 face="serif">14,468,525&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&nbsp; 14,468,525</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
 &nbsp;<FONT size=2 face="serif">38,101,545&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,112,919&nbsp; &nbsp; </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&nbsp; 50,214,464</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For federal income tax purposes, High Income had capital loss carryforwards at December 31, 2005 (most recent tax year end). These amounts may be used to offset future realized capital gains,
if any:</FONT></P>
<TABLE width="30%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="24%" align=left nowrap>

        </TD>
        <TD colspan="2" align=center nowrap>
<B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;      </TD>
        <TD width="9%" align="center">&nbsp;
        </TD>
        <TD width="23%" align=center nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;       </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Expires</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>&nbsp;
        </TD>
        <TD width="8%" align=right nowrap><font size=2 face="serif">&#36;</font></TD>
        <TD width="36%" align=right nowrap>
<FONT size=2 face="serif">24,744,772</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2007</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">35,363,213</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2008</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">55,878,284</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2009</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">102,576,339</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2010</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">28,467,396</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2011</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,339,279</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:3px double #000000;">
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">249,369,283</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>

<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 (FIN 48) &#147;Accounting for Uncertainty in Income Taxes&#148;. FIN 48 provides guidance
for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trusts&#146; tax returns to determine whether
the tax positions are &#147;more-likely-than-not&#148; of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and
recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for fiscal
years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.</FONT></P>
<P align="center">
<FONT size=2 face="serif">43</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">Note 6. Capital</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">There are an unlimited number of &#36;0.001 par value common shares authorized for Global and Preferred Opportunity. There are an unlimited number of no par value shares authorized for High Income. At June 30, </FONT><FONT size=2 face="serif">2006, the shares owned by affiliates of the Advisor of Global were 6,742.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the six months ended June 30, 2006 and year ended December 31, 2005, the following Trusts issued additional shares under the terms of their dividend reinvestment plan:</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="28%" align=center nowrap>
<B><FONT size=2 face="serif">Six Months ended</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="32%" align=center nowrap>
<B><FONT size=2 face="serif">Year ended</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD width="9%" align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="25%" align=left nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">June 30, 2006</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">December 31, 2005</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">52,024</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">302,078</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">21,279</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</FONT>&nbsp;
      </center></TD>
</TR>
</TABLE>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of June 30, 2006, 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="80%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="5%" align=left nowrap style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="7%" align=left nowrap>&nbsp;</TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width="8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width="5%" style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="21%">&nbsp;</TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="11%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width="6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width="14%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">T7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">T7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">W7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">W7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">R7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">R7</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2,944</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<P align="justify">
&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 ranges on the preferred shares for Global and
Preferred Opportunity for the six months ended June 30, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="5%" style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width=5% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>
      </center></TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Average</FONT></B>
        </TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width="1%" style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="17%">&nbsp;</TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD width=5% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>
      </center></TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
        <TD width=3%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Average</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">3.61</FONT>
        </TD>
        <TD width=3% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">4.87</FONT>
        </TD>
        <TD width=3% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">4.35</FONT>
        </TD>
        <TD width=5% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">4.11</FONT>
        </TD>
        <TD width=3% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">5.21</FONT>
        </TD>
        <TD width=3% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right nowrap>
<FONT size=2 face="serif">4.53</FONT>
        </TD>
        <TD width=5% align=left nowrap>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.93</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.36</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.11</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.54</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.42</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.11</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.20</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.56</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<P align="justify">
<B><FONT face="serif">Note 7. Dividends</FONT></B></P>
<P align="justify">
<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 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting
separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust&#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 align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Subsequent to June 30, 2006, the Boards declared dividends from undistributed earnings per common share for Global and Preferred Opportunity payable July 31, 2006, to shareholders of record on
July 14, 2006 and for High Income payable August 10, 2006 to shareholders of record on July 28, 2006. The per share common dividends declared were as follows:</FONT></P>
<TABLE width="30%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD width="2%" style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="3%">&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">&#36;0.125000</FONT>&nbsp;&nbsp;&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">0.020500</FONT>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">0.166667</FONT>&nbsp;
      </center></TD>
</TR>
</TABLE>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The dividends declared on preferred shares for the period July 1, 2006 to July 31, 2006 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% height="20" align=left nowrap>&nbsp;

        </TD>
        <TD width=16%>&nbsp;
        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=7% align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
      </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=7% align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
  <TD style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD width="4%" style="border-bottom:1px solid #000000;"> <B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
        <TD width="20%">&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;305,643</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;286,952</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">298,567</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">281,859</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">302,332</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">285,509</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">44</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">
  <center>
    <b><font face="serif">BOARD REVIEW
        OF INVESTMENT MANAGEMENT AGREEMENTS</font></b>
  </center>
</div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under the 1940 Act, the continuation of each Trust&#146;s investment management and sub-advisory agreements is required to be approved annually by the Boards, including the Board members who
are not &#147;interested persons&#148; of the Trusts or BlackRock Advisors, Inc. and BlackRock Financial Management, Inc. (together the &#147;Advisors&#148;) as defined in the 1940 Act (&#147;the independent Trustees&#148;). At a meeting held on May
23, 2006, the Board of each Trust, including the independent trustees, met to consider the annual continuation of each Trust&#146;s agreement (the &#147;Current Agreements&#148;). The Boards first considered the annual continuation of each Current
Agreement without considering the impending Transaction (as defined below) under &#147;Additional Information&#148; between BlackRock, Inc. (&#147;BlackRock&#148;) and Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) because the Current
Agreements needed to be re-approved whether or not the Transaction closes. Accordingly, it was appropriate to review each Current Agreement without considering the impending Transaction, and then to separately consider the impact of the Transaction
on the Current Agreements. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At the meeting on May 23, 2006, the Board of each Trust, including the independent trustees, unanimously approved the continuance of each current investment management agreement and, if
applicable, current sub-advisory agreement for each Trust and then approved a new management agreement and a new sub-advisory agreement for each Trust. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Information Received by the Boards</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">To assist each Board in its evaluation of the Current Agreements, the independent trustees received information from BlackRock on or about April 22, 2006 which detailed, among other things: the
organization, business lines and capabilities of the Advisors, including the responsibilities of various departments and key personnel and biographical information relating to key personnel; financial statements for BlackRock, Inc., The PNC
Financial Services Group, Inc. and each Trust; the advisory and/or administrative fees paid by each Trust to BlackRock Advisors, Inc. and BlackRock Financial Management, Inc. (collectively the &#147;Advisors&#148;), including comparisons, compiled
by an independent third party, with the management fees of funds with similar investment objectives (&#147;Peers&#148;); the profitability of BlackRock and certain industry profitability analyses for advisors to registered investment companies; the
expenses of BlackRock in providing the various services; non-investment advisory reimbursements and &#147;fallout&#148; benefits to BlackRock; the expenses of each Trust, including comparisons of the respective Trust&#146;s expense ratios (both
before and after any fee waivers) with the expense ratios of its Peers; and each Trust&#146;s performance for the past one-, three-, five-and ten-year periods, when applicable, as well as each Trust&#146;s performance compared to its Peers. This
information supplemented the information received by each Board throughout the year regarding each Trust&#146;s performance, expense ratios, portfolio composition, trade execution and compliance. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In addition to the foregoing materials, independent legal counsel to the independent trustees provided a legal memorandum outlining, among other things, the duties of the Boards under the 1940
Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the requirements of the 1940 Act in such matters, an advisor&#146;s fiduciary duty with respect to advisory agreements and compensation, and the
standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the boards in voting on advisory agreements. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The independent trustees reviewed this information and discussed it with independent counsel in executive session prior to the Board meeting. At the Board meeting on May 23, 2006, BlackRock
made a presentation to and responded to additional questions from the Boards. After the presentations and after additional discussion the Boards considered each Current Agreement and, in consultation with independent counsel, reviewed the factors
set out in judicial decisions and SEC statements relating to the renewal of the Current Agreements.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Matters Considered by the Boards</FONT></B></P>
<P align="justify">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Current Agreements</FONT></I></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In connection with their deliberations with respect to the Current Agreements, the Boards considered all factors they believed relevant with respect to each Trust, including the following: the
nature, extent and quality of the services to be provided by the Advisors; the investment performance of each Trust; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship
with the Trusts; the extent to which economies of scale would be realized as the BlackRock closed-end fund complex grows; and whether BlackRock realizes other benefits from its relationship with the Trusts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Nature and Quality of Investment Advisory and Sub-Advisory Services. </FONT></I><FONT size=2 face="serif">In evaluating the nature, extent and quality of the Advisors&#146; services, the
Boards reviewed information concerning the types of services that the Advisors provide and are expected to provide to each Trust, narrative and statistical information concerning each Trust&#146;s performance record and how such performance compares
to each Trust&#146;s Peers, information describing BlackRock&#146;s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Boards noted the willingness of the personnel of
BlackRock to engage in open, candid discussions with the Boards. The Boards further considered the quality of the Advisors&#146; investment process in making portfolio management decisions. Given the Boards&#146; experience with BlackRock, the
Boards noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of BlackRock. The Boards also noted that the formation of Portfolio Review Committees and a Compliance Committee had
helped the Boards to continue to improve their understanding of BlackRock&#146;s organization, operations and personnel.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In addition to advisory services, the independent trustees considered the quality of the administrative or non-investment advisory services provided to the Trusts. In this regard, the Advisors
provide each Trust with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Trusts) and officers and other personnel as are necessary for the operations of the respective Trust. In
addition to investment management services, the Advisors and their affiliates provide each Trust with services such as: preparing shareholder reports and communications, including annual and semi-annual financial statements and Trust websites;
communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock</FONT></P>
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<P align="justify">
<FONT size=2 face="serif">exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such
as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing
requirements). The Boards considered the Advisors&#146; policies and procedures for assuring compliance with applicable laws and regulations.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Investment Performance of the Trusts. </FONT></I><FONT size=2 face="serif">As previously noted, the Boards received performance information regarding each Trust and its Peers. Among other
things, the Boards received materials reflecting each Trust&#146;s historic performance and each Trust&#146;s performance compared to its Peers. More specifically, each Trust&#146;s one-, three-, five- and ten-year total returns (when applicable)
were evaluated relative to its respective Peers (including the performance of individual Peers as well as the Peers&#146; median performance).</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards reviewed a narrative analysis of the third-party Peer rankings that was prepared by BlackRock at the Boards&#146; request. The summary placed the Peer rankings into context by
analyzing various factors that affect these comparisons. In evaluating the performance information, in certain limited instances, the Boards noted that the Peers most similar to a given Trust still would not adequately reflect such Trust&#146;s
investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Trust&#146;s performance with that of its Peers. The Boards noted that BGT and BPP had performed better than or equal to the median of their Peers and
benchmarks in the past one-year period. The Boards also noted that HIS had performed worse than the median of its Peers in at least one of the past one-, three- and five-year periods or worse than its applicable benchmark in more than one of these
periods. The Boards considered the following reasons why HIS may have underperformed its Peers or its benchmarks, but also noted that it is often difficult to determine why a Trust underperformed a Peer because it is difficult to obtain perfect
information with respect to the Peers.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Board noted that HIS has under-performed its respective Peers in each of the above periods, but that it invests in relatively high quality debt because the Advisor has been concerned that
relatively lower quality debt was not providing adequate returns for the increased risk present. The Board noted that higher quality debt had been under-performing lower quality debt during 2005, reducing the Trust&#146;s relative performance. The
Board also noted that the Advisor had been managing HIS only since March 2005 and restructured its portfolio through April 2005. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After considering this information, the Boards concluded that the performance of each Trust, in light of and after considering the other facts and circumstances applicable to each Trust,
supports a conclusion that each Trust&#146;s Current Agreement should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Fees and Expenses. </FONT></I><FONT size=2 face="serif">In evaluating the management fees and expenses that a Trust is expected to bear, the Boards considered each Trust&#146;s current
management fee structure and the Trust&#146;s expected expense ratios in absolute terms as well as relative to the fees and expense ratios of applicable Peers. In reviewing fees, the Boards, among other things, reviewed comparisons of each
Trust&#146;s gross management fees after any applicable reimbursements and fee waivers and total expense ratios after any applicable waivers with those of the applicable Peers. The Boards also reviewed a narrative analysis of the Peer rankings that
was prepared by an independent third party and summarized by BlackRock at the request of the Boards. This summary placed the rankings into context by analyzing various factors that affect these comparisons. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards noted that BGT pays fees lower than or equal to the median fees paid by its Peers in each of (i) contractual management fees payable by a Trust prior to any fee waivers
(&#147;contractual management fees&#148;), (ii) actual management fees paid by a Trust after taking into consideration fee waivers (&#147;actual management fees&#148;) and (c) total expenses. The Boards noted the following reasons why BPP and HIS
have contractual or actual management fees or total expenses higher than the median of their Peers:</FONT></P>
<UL>
<LI>
<P align="justify"><I><FONT size=2 face="serif">De minimis. </FONT></I><FONT size=2 face="serif">The Board of BPP noted that the Trust pays actual management fees and/or incur total expenses that are no more than 4 bps</FONT> <FONT size=2 face="serif">higher than the median of its Peers. Nevertheless, the Trust has contractual management fees that are lower than the median of its peers.<br>
</FONT></P></LI>
<LI>
  <P align="justify"><I><FONT size=2 face="serif">Other Factors. </FONT></I><FONT size=2 face="serif">The
      Board of HIS noted that the Trust pays actual management fees and incurs
      total expenses and is subject to contractual
      management fees that are worse than the median of its Peers. The Boards
    noted that BlackRock has agreed to cap HIS&#146;s operating</FONT> <FONT size=2 face="serif">expenses.</FONT></P>
</LI>
</UL>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards also compared the management fees charged to the Trusts and other closed-end investment companies by the Advisors to the management fees the Advisors charge other types of clients
(such as open-end investment companies and separately managed institutional accounts). With respect to open-end investment companies, the management fees charged to the Trusts generally were higher than those charged to the open-end investment
companies. The Boards also noted that the Advisors provide the Trusts with certain services not provided to open-end funds, such as leverage management in connection with the issuance of preferred shares, stock exchange listing compliance
requirements, rating agency compliance with respect to the leverage employed by the Trusts and secondary market support and other services not provided to the Trusts, such as monitoring of subscriptions and redemptions. With respect to separately
managed institutional accounts, the management fees for such accounts were generally lower than those charged to the comparable Trusts. The Boards noted, however, the various services that are provided and the costs incurred by the Advisors in
managing and operating the Trusts. For instance, the Advisors and their affiliates provide numerous services to the Trusts that are not provided to institutional accounts including, but not limited to: preparing shareholder reports and
communications, including annual and semi-annual financial statements; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings
and preparing the Board materials for such meetings; income monitoring; expense budgeting; preparing proxy statements; and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and
fulfilling regulatory filing requirements). Further, the Boards noted the increased compliance requirements for the Trusts in light of new SEC regulations and other legislations. These services are generally not required to the same extent, if at
all, for separate accounts. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In connection with the Boards&#146; consideration of this information, the Boards reviewed the considerable investment management experience of the Advisors and considered the high level of
investment management, administrative and other services provided by the Advisors. In light</FONT></P>
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<P align="justify">
<FONT size=2 face="serif">of these factors and the other facts and circumstances applicable to each Trust, the Boards concluded that the fees paid and expenses incurred by each Trust under its Current Agreements supports a conclusion that each
Trust&#146;s Current Agreements should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Profitability. </FONT></I><FONT size=2 face="serif">The Directors also considered BlackRock&#146;s profitability in conjunction with their review of fees. The Directors reviewed
BlackRock&#146;s revenues, expenses and profitability margins on a before and after after-tax basis. In reviewing profitability, the Directors recognized that one of the most difficult issues in determining profitability is establishing a method of
allocating expenses. The Directors also reviewed BlackRock&#146;s assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Boards also recognized that individual
fund or product line profitability of other advisors is generally not publicly available. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore
comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Boards considered BlackRock&#146;s pre-tax profit margin compared to the pre-tax profitability of various publicly-traded investment management companies
and/or investment management companies that publicly disclose some or all of their financial results. The comparison indicated that BlackRock&#146;s pre-tax profitability was in the second quartile of the fifteen companies compared (including
BlackRock), with the most profitable quartile being ranked first and the least profitable quartile being ranked fourth.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In evaluating the reasonableness of the Advisors&#146; compensation, the Boards also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors
for certain non-investment advisory services. The Boards noted that these payments were less than the Advisors&#146; costs for providing these services. The Boards also considered indirect benefits that the Advisors and their affiliates are expected
to receive that are attributable to their management of the Trusts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In reviewing each Trust&#146;s fees and expenses, the Boards examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Trusts&#146;
fee structures, for example through the use of breakpoints. In this connection, the Boards reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints, as closed-end funds generally do
not experience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The Boards also noted that the one Trust that has a breakpoint in its fee structure, HIS, was
inherited by BlackRock when it took over managing HIS from another manager and that BlackRock simply retained the structure it inherited. The information also revealed that only one closed-end fund complex used a complex-level breakpoint structure
for advisory fees, and that this complex generally is homogeneous with regard to the types of funds managed and is about three times as large as the Trusts&#146; complex.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards concluded that BlackRock&#146;s profitability, in light of all the other facts and circumstances applicable to each Trust, supports a conclusion that each Trust&#146;s Current
Agreements should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Other Benefits. </FONT></I><FONT size=2 face="serif">In evaluating fees, the Boards also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of
their relationships with the Trusts. The Trustees, including the independent trustees, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relationships with the Trusts, including potential benefits
accruing to the Advisors and their affiliates as a result of participating in offerings of the Trusts&#146; shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors and their
affiliates, enhanced sales of other investment funds and products sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with
broker-dealers. The Boards also considered the unquantifiable nature of these potential benefits.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Miscellaneous. </FONT></I><FONT size=2 face="serif">During the Boards&#146; deliberations in connection with the Current Agreements, the Boards were aware that the Advisor pays compensation,
out of its own assets, to the lead underwriter and to certain qualifying underwriters of many of its closed-end funds, and to employees of the Advisors&#146; affiliates that participated in the offering of such funds. The Boards considered whether
the management fee met applicable standards in light of the services provided by the Advisors, without regard to whether the Advisors ultimately pay any portion of the anticipated compensation to the underwriters.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Conclusion with respect to the Current Agreements. </FONT></I><FONT size=2 face="serif">In reviewing the Current Agreements without considering the impending Transaction, the Trustees did
not identify any single factor discussed above as all-important or controlling. The Trustees, including the independent trustees, unanimously determined that each of the factors described above, in light of all the other factors and all of the facts
and circumstances applicable to each respective Trust, was acceptable for each Trust and supported the Trustees&#146; conclusion that the terms of each Current Agreement were fair and reasonable, that the respective Trust&#146;s fees are reasonable
in light of the services provided to the respective Trust, and that each Current Agreement should be approved.</FONT></P>
<P align="justify">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Transaction</FONT></I></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On February 15, 2006, BlackRock and Merrill Lynch announced that they had entered into an agreement pursuant to which Merrill Lynch would contribute its investment management business, Merrill
Lynch Investment Managers (&#147;MLIM&#148;), to BlackRock, one of the largest publicly traded investment management firms in the United States, to form a new asset management company that will be one of the world&#146;s preeminent, diversified
global money management organizations with approximately &#36;1 trillion in assets under management (the &#147;Transaction&#148;). Based in New York, BlackRock currently manages assets for institutional and individual investors worldwide through a
variety of equity, fixed income, cash management and alternative investment products. The new company will operate under the BlackRock name and be governed by a board of directors with a majority of independent members. The new company will offer a
full range of equity, fixed income, cash management and alternative investment products with strong representation in both retail and institutional channels, in the U.S. and in non-U.S. markets. It will have over 4,500 employees in 18 countries and
a major presence in most key markets, including the United States, the United Kingdom, Asia, Australia, the Middle East and Europe. Merrill Lynch will own no more than 49.8% of the total issued and outstanding capital stock of the new company and it
will own no more than 45% of the new company&#146;s common stock, and The PNC Financial Services Group,</FONT></P>
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<P align="justify">
<FONT size=2 face="serif">Inc. (&#147;PNC&#148;), which currently holds a majority interest in BlackRock, will retain approximately 34% of the new company&#146;s common stock. Each of Merrill Lynch and PNC has agreed that it will vote all of its
shares on all matters in accordance with the recommendation of BlackRock&#146;s board. Completion of the Transaction is subject to various regulatory approvals, client consents, approval by BlackRock shareholders and customary conditions. The
Transaction has been approved by the boards of directors of Merrill Lynch, BlackRock and PNC and is expected to close at the end of the third quarter of 2006.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Although BlackRock has informed the Boards that it does not believe the Transaction will be an assignment of the Current Agreements under the 1940 Act, it is possible that the Transaction could
be determined to be such an assignment, which would result in the automatic termination of each Current Agreement. Due to this uncertainty, each Trust submitted its post-Transaction management agreements and sub-advisory agreements (collectively the
&#147;New Agreements&#148;) to shareholders to prevent any potential disruption in the Advisor&#146;s ability to continue to provide services to the Trusts after completion of the Transaction. The New Agreements will be effective upon the completion
of the Transaction or, if the Transaction is not completed, at such time as the Boards determine.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Consequences of the Transaction. </FONT></I><FONT size=2 face="serif">On February 23, 2006, April 21, 2006 and May 23, 2006, members of BlackRock management made presentations on the
Transaction to the Boards and the Boards discussed with management and amongst themselves management&#146;s general plans and intentions regarding the Trusts, including the preservation, strengthening and growth of BlackRock&#146;s business and its
combination with MLIM&#146;s business. The Boards also inquired about the plans for and anticipated roles and responsibilities of certain BlackRock employees and officers after the Transaction. The independent trustees also met in executive session
to discuss the Transaction. After these meetings, BlackRock continued to update the Boards with respect to its plans to integrate the operations of BlackRock and MLIM and the potential impact of those plans on the Trusts as those plans were further
developed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After considering and approving the Current Agreements, the Boards (including the independent trustees) then considered the information received at these meetings and the consequences of the
Transaction to each Trust, including, among other things:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i) that BlackRock, MLIM and their investment advisory subsidiaries are experienced and respected asset management firms, and that BlackRock advised the Boards that in connection with the
closing of the Transaction, it intends to take steps to combine the investment management operations of BlackRock and MLIM, which, among other things, may involve sharing common systems and procedures, employees (including portfolio managers),
investment and trading platforms, and other resources. Furthermore, it is expected that these combination processes will result in changes to portfolio managers or portfolio management teams for some of the BlackRock closed-end funds, but not the
Trusts;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) that BlackRock advised the Boards that following the Transaction, there is not expected to be any diminution in the nature, quality and extent of services provided to the Trusts and their
shareholders by the Advisors, including compliance services;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii) that BlackRock advised the Boards that it has no present intention to alter the expense waivers and reimbursements currently in effect for certain of the Trusts;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iv) the experience, expertise, resources and performance of MLIM that will be contributed to BlackRock after the closing of the Transaction and their anticipated impact on BlackRock&#146;s
ability to manage the Trusts;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(v) that BlackRock and MLIM would derive benefits from the Transaction and that as a result, they have a financial interest in the matters that were being considered;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(vi) the potential effects of regulatory restrictions on the Trusts as a result of Merrill Lynch&#146;s equity stake in BlackRock after the Transaction;</FONT></P>
<P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(vii)
    the fact that each Trust&#146;s aggregate investment advisory
  and sub-advisory fees will not increase by virtue of the New Agreements;</FONT></P>
<P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(viii)
      the terms of the New Agreements, including the differences from the Current
    Agreements; </FONT></P>
<P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ix) that the Trusts would not bear
    the costs of obtaining shareholder approval of the New Agreements; and</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(x) that BlackRock and Merrill Lynch have agreed to conduct their respective businesses (and use reasonable best efforts to cause their respective affiliates to conduct their respective
businesses) to enable the conditions of Section 15(f) to be true in relation to any registered investment companies advised by MLIM and registered under the 1940 Act and have agreed to the same conduct in relation to the BlackRock registered
investment companies to the extent it is determined the Transaction is an assignment under the 1940 Act.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Nature and Quality of Investment Advisory and Sub-Advisory Services. </FONT></I><FONT size=2 face="serif">The Boards considered the expected impact of the Transaction on the operations,
facilities, organization and personnel of the Advisors, the potential implications of regulatory restrictions on the Trusts following the Transaction and the ability of the Advisors to perform their duties after the Transaction. The Boards
considered that the services to be provided and the standard of care under the New Agreements are the same as under the Current Agreements. The Boards also considered statements by management of BlackRock that, in connection with integrating the
operations of the Advisors and MLIM, the objective was to preserve the best of both organizations in order to enhance BlackRock&#146;s ability to provide investment advisory services following completion of the Transaction. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards noted that it is impossible to predict with certainty the impact of the Transaction on the nature, quality and extent of the services provided by the Advisors to the Trusts, but
concluded based on the information currently available and in light of all of the current facts and circumstances that the Transaction is likely to provide the Advisors with additional resources with which to serve the Trusts and was not expected to
adversely affect the nature, quality and extent of the services to be provided to the Trusts and their shareholders by the Advisors and was not expected to materially adversely affect the ability of the Advisors to provide those services.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards considered that BlackRock currently intends that the portfolio managers for the Trusts will remain the same following completion of the Transaction. </FONT></P>
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<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Investment Performance of the Trusts. </FONT></I><FONT size=2 face="serif">The Boards examined MLIM&#146;s investment performance with respect to its closed-end funds. The Boards noted the
Advisors&#146; and MLIM&#146;s considerable investment management experience and capabilities. The Boards considered this information together with the level of services expected to be provided to the Trusts. Although the Boards noted that it is
impossible to predict the effect, if any, that consummation of the Transaction would have on the future performance of the Trusts, the Boards concluded that the information currently available, in light of all of the current facts and circumstances,
supported approving the New Agreements. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Fees. </FONT></I><FONT size=2 face="serif">The Boards noted that the fees payable by the Trusts under the New Agreements are identical to the fees payable under the Current Agreements. The
Boards also considered the fees paid by the MLIM closed-end funds. In light of (i) the Boards&#146; approval of the fees paid by each Trust pursuant to the Current Agreements earlier at the May 23rd meeting, (ii) the fact that the Transaction would
cause no change to the fees paid by any Trust and (iii) the Boards&#146; earlier conclusion with respect to the services expected to be provided to the Trusts under the New Agreements, the Boards concluded that the fee structure under the New
Agreements was reasonable.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Profitability. </FONT></I><FONT size=2 face="serif">Management of the Advisors stated to the Boards that, following the Transaction, the current intention is to continue to determine
profitability and report profitability to the Boards in the same way as they did prior to the Transaction, subject to management&#146;s desire to preserve the best practices of MLIM. Management of the Advisors stated that any changes in the methods
used to determine profitability and report profitability to the Boards would be discussed with the Boards. The Boards considered the potential for increased economies of scale as a result of the Transaction and whether any economies of scale should
be reflected in the Trusts&#146; fee structures. The Boards also considered that the process of integrating the operations of the Advisors and MLIM was in the early stages and that considerable expense would be incurred in connection with
integrating such operations, all of which made it difficult to conclude that economies of scale would be realized as a result of the Transaction. In light of the foregoing, the Boards concluded that, at this time, no changes were necessary to the
fee structure of the Trusts as a result of the Transaction.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Other Benefits. </FONT></I><FONT size=2 face="serif">In evaluating ancillary benefits to be received by the Advisors and their affiliates under the New Agreements, the Boards considered
whether the Transaction would have an impact on the ancillary benefits received by the Advisors by virtue of the Current Agreements. Based on its review of the materials provided, including materials received in connection with its approval of the
continuance of each Current Agreement earlier at the May 23rd meetings of the Boards and its discussions with the Advisors, the Boards noted that such benefits were difficult to quantify with certainty at this time and indicated that it would
continue to evaluate them going forward.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Conclusion with respect to the New Agreements. </FONT></I><FONT size=2 face="serif">The Boards did not identify any single consequence of the Transaction discussed above as all-important or
controlling. The Boards, including a majority of the independent trustees, unanimously approved each New Agreement and unanimously recommended its approval by shareholders of each respective Trust in order to assure continuity of investment advisory
services to the Trusts after the Transaction.</FONT></P>
<div style="border-bottom:1px solid #000000">
  <center>
    <b><font face="serif">DIVIDEND
        REINVESTMENT PLANS</font></b>
  </center>
</div>
<P align="justify">
&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 High Income may elect, while shareholders of Global and Preferred Opportunity are
automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare 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 align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After each Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participant&#146;s 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 align="justify">
&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 align="justify">
&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 align="justify">
&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 who 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 commission. 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">
<FONT size=2 face="serif">49</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">
  <center>
    <b><font face="serif">ADDITIONAL
        INFORMATION</font></b>
  </center>
</div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Joint Annual Meeting of Shareholders was held on May 23, 2006 for shareholders of record as of February 28, 2006, to elect a certain number of Trustees for each of the following Trusts to
three-year terms expiring in 2009: Elected the Class I Trustee as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="19%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD colspan=3 align=left nowrap style="border-bottom:1px solid #000000;">
 <center>
   <B><FONT size=2 face="serif">Richard E. Cavanagh</FONT></B>&nbsp;
    </center></TD>
    <TD width="55%">&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="10%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="12%" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
        </TD>
    <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">20,989,376</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">281,296</FONT>&nbsp;
      </div></TD>
    <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">17,002,345</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">220,430</FONT>&nbsp;
      </div></TD>
    <TD align=center nowrap>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<FONT size=2 face="serif">Elected the Class II Trustees as follows:</FONT>
<br>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Frank J. Fabozzi</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Kathleen F. Feldstein</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Ralph L. Schlosstein</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Global</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <div align="right"><FONT size=2 face="serif">8,412</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19 </FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <div align="right"><FONT size=2 face="serif">8,412 </FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=2 face="serif">19 </FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,992,753</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">277,919</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">High Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=2 face="serif">49,238,439</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">1,144,514</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">49,164,938</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">1,218,015</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49,213,688</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,169,265</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <div align="right"><FONT size=2 face="serif">7,768 </FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <div align="right"><FONT size=2 face="serif">74 </FONT><SUP><FONT size=2 face="serif">1</FONT></SUP></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">N/A</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=3>
<FONT size=2 face="serif">Elected the Class III Trustees as follows:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Andrew F. Brimmer</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Kent Dixon</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Robert S. Kapito</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
        <TD>
<FONT size=2 face="serif">Preferred Opportunity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=2 face="serif">16,982,874</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">239,901</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">17,001,489</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">221,286</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,008,291</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">214,484</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<FONT size=1 face="serif">_________________<br>
<sup>1</sup> </FONT><FONT size=1 face="serif">Voted
on by holders of preferred shares only</FONT>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On May 23, 2006, the Board of High Income approved a change to its non-fundamental investment policy to eliminate the average maturity restriction of its portfolio.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the period, there were no material changes in the investment objectives or policies or their charters or by-laws of Global or Preferred Opportunity that have not been approved by the
shareholders or in the principal risk factors associated with investment in these Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of these portfolios.</FONT></P>
<P align="justify">
&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 annual 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 align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts&#146; shares are not continuously offered, which means that the Statement of
Additional Information of each Trust has not been updated after completion of such Trust&#146;s offering and the information contained in each Trust&#146;s Statement of Additional Information may have become outdated. </FONT></P>
<P align="justify">
&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 align="justify">
&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, Bartholomew Battista, Brian P. Kindelan and Vincent B. Tritto&#151;Managing Directors of the Advisor and
the Sub-Advisor, and James Kong&#151;Managing Director of the Sub-Advisor.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">IMPORTANT INFORMATION REGARDING THE BLACKROCK CLOSED-END FUNDS SEMI-ANNUAL INVESTOR UPDATE</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The </FONT><I><FONT size=2 face="serif">Semi-Annual Investor Update </FONT></I><FONT size=2 face="serif">(&#147;Update&#148;) is available on the Internet and may be accessed through
BlackRock&#146;s website at http://www.blackrock.com/indiv/products/closedendfunds/i_update.html. The Update provides information on the fixed income markets and summaries of BlackRock closed-end funds&#146; investment objectives and strategies. It
also contains recent news regarding the BlackRock closed-end funds. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Historically, BlackRock provided this information in materials mailed with the Funds&#146; semi-annual report. However, we believe that making this information available through
BlackRock&#146;s website allows us to communicate more fully and efficiently with the Funds&#146; shareholders.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">If you would like to receive a hard copy of the BlackRock Closed-End Funds </FONT><I><FONT size=2 face="serif">Semi-Annual Investor Update, </FONT></I><FONT size=2 face="serif">please call (800) 699-1BFM.</FONT></P>
<P align="center">
<FONT size=2 face="serif">50</FONT></P>

<HR noshade align="center" width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">
  <center>
    <b><font face="serif">SECTION 19
        NOTICES</font></b>
  </center>
</div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Set forth below is a summary of notices, sent by each Trust, if any, pursuant to Section 19 of the Investment Company Act of 1940. Section 19 requires each Trust to accompany dividend payments
with a notice if any part of that payment is from a source other than accumulated net investment income, not including profits or losses from the sale of securities or other properties. These notices are not for tax reporting purposes and were
provided only for informational purposes in order to comply with the requirements of Section 19. In January 2007, after the completion of each Trust&#146;s tax year, shareholders will receive a Form 1099-DIV which will reflect the amount of income,
capital gain and return of capital paid by the Trust taxable in calendar year 2006 and reportable on your 2006 federal and other income tax returns.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=17% align=left nowrap>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=left nowrap>&nbsp;

        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD width=8% align=left nowrap>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=6% align=center nowrap>
<B><FONT size=2 face="serif">Net</FONT></B>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Distributions from</FONT></B>&nbsp;
      </center></TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Investment</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Proceeds from the</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">from Return</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sale of Securities</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">of Capital</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">BlackRock</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">Apr-06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.02050</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.01708</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width=10% align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=1% align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">0.00342</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">High Income Shares</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">(HIS)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">BlackRock</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">Jan-06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.16667</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.14290</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.02380</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">Apr-06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.16667</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.14933</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right>
<FONT size=2 face="serif">0.01737</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Opportunity</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">May-06</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.16667</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.11089</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.05581</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>&nbsp; </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Trust (BPP)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">51</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="center">
<FONT size=2 face="serif">[THIS PAGE INTENTIONALLY LEFT BLANK]</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td width="46%" align=left nowrap> <font face="serif">Directors/Trustees</font>&nbsp; </td>
    <td width="54%" align=left nowrap> <font face="serif">Transfer Agent</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Ralph
        L. Schlosstein, </font><i><font size=2 face="serif">Chairman</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Computershare
        Trust Company, N.A.</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Andrew
        F. Brimmer, </font><i><font size=2 face="serif">Lead Trustee</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">250
        Royall Street</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Richard
        E. Cavanagh</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Canton,
        MA 02021</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Kent
        Dixon</font>&nbsp; </td>
    <td align=center nowrap> <div align="left">&nbsp; &nbsp; &nbsp;<font size=2 face="serif">(800)
    699-1BFM</font>&nbsp; </div></td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Frank
        J. Fabozzi</font>&nbsp; </td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Kathleen
        F. Feldstein</font>&nbsp; </td>
    <td align=left nowrap> <font face="serif">Auction Agent</font><sup><font face="serif">1</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">R.
        Glenn Hubbard</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Bank
        of New York</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Robert
        S. Kapito</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">101
        Barclay Street, 7 West</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>&nbsp;</td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New
        York, NY 10286</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> <font face="serif">Officers</font>&nbsp; </td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Robert
        S. Kapito, </font><i><font size=2 face="serif">President</font></i>&nbsp; </td>
    <td align=left nowrap> <font face="serif">Independent Registered Public Accounting
        Firm</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Henry
        Gabbay, </font><i><font size=2 face="serif">Treasurer</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Deloitte &amp; Touche
        LLP</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Bartholomew
        Battista, </font><i><font size=2 face="serif">Chief Compliance Officer</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">200
        Berkeley Street</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Anne
        Ackerley, </font><i><font size=2 face="serif">Vice President</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Boston,
        MA 02116</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">James
        Kong, </font><i><font size=2 face="serif">Assistant Treasurer</font></i>&nbsp; </td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Vincent
    B. Tritto, </font><i><font size=2 face="serif">Secretary</font></i>&nbsp;  </td>
    <td align=left nowrap> <font face="serif">Legal Counsel</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Brian
    P. Kindelan, </font><i><font size=2 face="serif">Assistant Secretary</font></i>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Skadden,
        Arps, Slate, Meagher &amp; Flom LLP</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">4
        Times Square</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> <font face="serif">Investment Advisor</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New
        York, NY 10036</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">BlackRock
        Advisors, Inc.</font>&nbsp; </td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">100
    Bellevue Parkway</font>&nbsp; </td>
    <td align=left nowrap> <font face="serif">Legal Counsel &#150; Independent
        Trustees</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Wilmington,
    DE 19809</font>&nbsp;  </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Debevoise &amp; Plimpton
        LLP</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">(800)
    227-7BFM</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">919
        Third Avenue</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New
        York, NY 10022</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> <font face="serif">Sub-Advisor</font>&nbsp; </td>
    <td align=left nowrap>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">BlackRock
        Financial Management, Inc.</font>&nbsp; </td>
    <td align=left nowrap> &nbsp; &nbsp;<font size=2 face="serif">This report
        is for shareholder information. This is not a prospec-</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">40 East
        52nd Street</font>&nbsp; </td>
    <td align=left nowrap> <font size=2 face="serif">tus intended for use in
        the purchase or sale of Trust shares.</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New
        York, NY 10022</font>&nbsp; </td>
    <td align=left nowrap> <font size=2 face="serif">Statements and other information
        contained in this report are as</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>&nbsp;</td>
    <td align=left nowrap> <font size=2 face="serif">dated and are subject to
        change.</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> <font face="serif">Accounting Agent and Custodian</font>&nbsp; </td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">State
        Street Bank and Trust Company</font>&nbsp; </td>
    <td align=left nowrap> <font size=2 face="serif">BlackRock Closed-End Funds</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">2 Avenue
        de Lafayette</font>&nbsp; </td>
    <td align=left nowrap> <font size=2 face="serif">c/o BlackRock Advisors,
        Inc.</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Boston,
        MA 02111</font>&nbsp; </td>
    <td align=left nowrap> <font size=2 face="serif">100 Bellevue Parkway</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>_______</td>
    <td align=left nowrap> <font size=2 face="serif">Wilmington, DE 19809</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <sup><font size=1 face="serif">1 </font></sup><font size=1 face="serif">For
    Global and Preferred Opportunity.</font>&nbsp; </td>
    <td align=center nowrap>
      <div align="left"><font size=2 face="serif">(800)</font> <font size=2 face="serif">227-7BFM</font>&nbsp; </div></td>
  </tr>
</table>
<BR>
<P align="justify">
<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 Transfer Agent at (800) 699-1BFM.</FONT></P>
<P align="justify">
<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 align="justify">
<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 June 30th is available without charge, upon request, by calling (800)
699-1BFM or on the website of the Commission at http://www.sec.gov.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">The Trusts file their complete schedules 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 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 may also be obtained upon request, without charge, by calling (800) 699-1BFM.</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td><FONT size=1 face="sans-serif">This report is for shareholder information.
        This is not a prospectus intended for</FONT><BR>
      <FONT size=1 face="sans-serif">use in the purchase or sale of Trust shares.
      Statements and other information</FONT><BR>
      <FONT size=1 face="sans-serif">contained in this report are as dated and
      are subject to change.</FONT><br>
  <br>
  <FONT size=1 face="sans-serif">CEF-ANN-5</FONT></td>
    <td><div align="right"><IMG src="c43343_n-csrx56x1.jpg" border=0></div></td>
  </tr>
</table>
<HR noshade align="center" width="100%" size=4>
<P STYLE="page-break-before:always"></P><PAGE>

<P align="justify"><B><FONT face="serif">Item 2. Code of Ethics.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 3. Audit Committee Financial Expert.</FONT></B><FONT face="serif"> <br>
  Not applicable for semi-annual reports. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 4. Principal Accountant Fees and
      Services. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B><FONT face="serif"> <br>
  Not applicable for semi-annual reports. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 6. Schedule of Investments. <br>
  </FONT></B><FONT face="serif">The Registrant&#146;s Schedule of Investments
  is included as part of the Report to Stockholders filed under Item 1 of this
  Form. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 7. Disclosure of Proxy Voting
      Policies and Procedures for Closed-End Management Investment Companies. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 8. Portfolio Managers of Closed-End
      Management Investment Companies. <br>
  </FONT></B><FONT face="serif">(a)</FONT><FONT face="sans-serif"> </FONT><FONT face="serif">Not
  applicable for semi-annual reports.<br>
</FONT><FONT face="serif">(b)</FONT><FONT face="sans-serif"> </FONT><FONT face="serif">There
have been no changes in the Portfolio Managers identified in Item 8(a) of the
most recent annual report. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 9. Purchases of Equity Securities
      by Closed-End Management Company and Affiliated Purchasers. <br>
</FONT></B><FONT face="serif">No such purchases were made during the period covered
by this report. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 10. Submission of Matters to a
      Vote of Security Holders. <br>
</FONT></B><FONT face="serif">No matters were voted on by shareholders during
the period covered by this report. </FONT></P>
<P align="justify"> <B><FONT face="serif">Item 11. Controls and Procedures.</FONT></B><FONT face="serif"> <br>
  </FONT><FONT face="serif">(a) The Registrant's principal executive officer
  and principal financial officer have evaluated the Registrant's disclosure
  controls and procedures within 90 days of this filing and have concluded, as
  of that date, that the Registrant&#146;s disclosure controls and procedures
  were reasonably designed to ensure that information required to be disclosed
  by the Registrant in this Form N-CSR was recorded, processed, summarized, and
  reported within the required time periods and that information required to
  be disclosed by the Registrant in this Form N-CSR was accumulated and communicated
  to the Registrant&#146;s management, including its principal executive and
  principal financial officers, as appropriate to allow timely decisions regarding
  required disclosure. </FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="justify"> <FONT face="serif">(b) There were no changes in the Registrant's
    internal control over financial reporting (as defined in Rule 30a-3(d) under
    the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during
    the Registrant&#146;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 face="serif">Item 12. Exhibits.</FONT></B><FONT face="serif"> </FONT></P>
<P> <FONT face="serif">(a) (1) Not applicable. </FONT></P>
<P align="justify"> <FONT face="serif">(a) (2) Separate certifications of the
    Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under
    the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley
    Act of 2002 furnished as EX-99.CERT. </FONT></P>
<P align="justify"> <FONT face="serif">(b) Certification of Principal Executive
    and Financial Officers pursuant to Rule 30a-2(b) under the Investment Company
    Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 furnished as
    EX-99.906 CERT. </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">SIGNATURES</FONT></B><FONT face="serif"> </FONT></P>
<P> <FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>
<P> <FONT face="serif">(Registrant)___BlackRock Global Floating Rate Income Trust__________<BR>
</FONT></P>
<FONT face="serif">By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Henry Gabbay&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
<FONT face="serif">Name: Henry Gabbay </FONT><BR>
<FONT face="serif">Title: Treasurer </FONT><BR>
<FONT face="serif">Date: September 1, 2006</FONT><BR>
<P> <FONT face="serif"> &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>
<FONT face="serif">By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Robert S. Kapito&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
<FONT face="serif">Name: Robert S. Kapito </FONT><BR>
<FONT face="serif">Title: Principal Executive Officer </FONT><BR>
<FONT face="serif">Date: September 1, 2006</FONT><BR>
<FONT face="serif"><br>
By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Henry Gabbay&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
Name: Henry Gabbay </FONT><BR>
<FONT face="serif">Title: Principal Financial Officer </FONT><BR>
<FONT face="serif">Date: September 1, 2006</FONT><BR>
<HR noshade  width="100%" size=4>
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>6
<FILENAME>c43343_ex99-cert.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<P>
<B><FONT face="serif">EX-99.CERT </FONT></B></P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER </FONT></B></P>
<P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P>
<FONT face="serif">I, Robert Kapito, certify that: </FONT></P>
<P align="justify">
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Global Floating Rate Income Trust; </FONT></P>
<P align="justify">
<FONT face="serif">2. 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 align="justify">
<FONT face="serif">3. 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 align="justify">
<FONT face="serif">4. 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 align="justify">
<FONT face="serif">(a) 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 align="justify">
<FONT face="serif">(b) 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 align="justify">
<FONT face="serif">(c) 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><FONT size=2 face="sans-serif"> </FONT></P>

<P align="justify"><FONT face="serif">(d) 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 align="justify">
<FONT face="serif">5. 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 align="justify">
<FONT face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control 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 align="justify">
<FONT face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<P>
<FONT face="serif">Date: September 1, 2006</FONT></P>
<FONT face="serif"> </FONT>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="78%">&nbsp;</td>
    <td width="22%" nowrap><center>
      <FONT face="serif"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      Robert S. Kapito</u></FONT><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
        <FONT face="serif">Robert S. Kapito </FONT><BR>
        <FONT face="serif">Principal Executive Officer </FONT>
    </center></td>
  </tr>
</table>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P>
<B><FONT face="serif">EX-99.CERT </FONT></B></P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER </FONT></B></P>
<P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="justify">
<FONT face="serif">I, Henry Gabbay, certify that: </FONT></P>
<P align="justify">
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Global Floating Rate Income Trust; </FONT></P>
<P align="justify">
<FONT face="serif">2. 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 align="justify">
<FONT face="serif">3. 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 align="justify">
<FONT face="serif">4. 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 align="justify">
<FONT face="serif">(a) 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 align="justify">
<FONT face="serif">(b) 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 align="justify">
<FONT face="serif">(c) 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><FONT size=2 face="sans-serif"> </FONT></P>

<P align="justify"><FONT face="serif">(d) 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 align="justify">
<FONT face="serif">5. 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 align="justify">
<FONT face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control 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 align="justify">
<FONT face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<P>
<FONT face="serif">Date: September 1, 2006</FONT></P>
<FONT face="serif"> </FONT>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="21%" nowrap><center>
      <FONT face="serif"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Henry Gabbay&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
        <FONT face="serif">Henry Gabbay </FONT><BR>
        <FONT face="serif">Principal Financial Officer </FONT>
    </center></td>
  </tr>
</table>
<BR>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>7
<FILENAME>c43343_ex99-906cert.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P>
<B><U><FONT face="serif">SECTION 906 CERTIFICATION</FONT></U></B><FONT face="serif"> </FONT></P>
<P align="justify">
<FONT face="serif">Pursuant to 18 U.S.C. &sect; 1350, the undersigned officers of BlackRock Global Floating Rate Income Trust (the "Company"), hereby certify, to the best of their knowledge, that the Company's Report on Form N-CSR for the period
ended June 30, 2006 (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>
<P>
<FONT face="serif">Dated: September 1, 2006</FONT></P>
<FONT face="serif"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
Robert S. Kapito&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
Name: Robert S. Kapito </FONT><BR>
<FONT face="serif">Title: Principal Executive Officer </FONT><br>
<BR>
<FONT face="serif"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
Henry Gabbay&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
Name: Henry Gabbay </FONT><BR>
<FONT face="serif">Title: Principal Financial Officer </FONT><BR>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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