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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21349

Name of Fund: BlackRock Limited Duration Income Trust (BLW)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Limited Duration Income Trust, 40 East 52nd Street, New York, NY 10022.

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2009

Date of reporting period: 08/31/2009

Item 1 – Report to Stockholders



EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

AUGUST 31, 2009

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Senior Floating Rate Fund, Inc.

BlackRock Senior Floating Rate Fund II, Inc.

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE


Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  10 
Derivative Financial Instruments  11 
Disclosure of Expenses  11 
Fund Financial Statements   
       Schedules of Investments  12 
       Statements of Assets and Liabilities  38 
       Statements of Operations  40 
       Statements of Changes in Net Assets  42 
       Statements of Cash Flows  45 
Fund Financial Highlights  46 
Fund Notes to Financial Statements  52 
Fund Report of Independent Registered Public Accounting Firm  63 
Important Tax Information  64 
Master Senior Floating Rate LLC Portfolio Summary  64 
Master Senior Floating Rate LLC Financial Statements:   
       Schedule of Investments  65 
       Statement of Assets and Liabilities  71 
       Statement of Operations  72 
       Statements of Changes in Net Assets  72 
       Statement of Cash Flows  73 
Master Senior Floating Rate LLC Financial Highlights  74 
Master Senior Floating Rate LLC Notes to Financial Statements  75 
Master Senior Floating Rate LLC Report of Independent Registered Public Accounting Firm  80 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  81 
Automatic Dividend Reinvestment Plan  85 
Officers and Directors  86 
Additional Information  89 

2 ANNUAL REPORT AUGUST 31, 2009


Dear Shareholder

The past 12 months reveal two distinct economic and market backdrops — one of extreme investor pessimism and decided weakness, and another of

increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the

surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,

uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-

tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected

economic data and upside surprises in corporate earnings.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted

in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-

ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-

kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns

about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-

tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery

in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The

municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-

down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-

ticular, August marked the municipal market’s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was

lost during 2008.

Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated

market, while less-risky fixed income investments posted stable, modest returns.

Total Returns as of August 31, 2009  6-month  12-month 
US equities (S&P 500 Index)  40.52%  (18.25)% 
Small cap US equities (Russell 2000 Index)  48.25  (21.29) 
International equities (MSCI Europe, Australasia, Far East Index)  53.47  (14.95) 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)  (1.61)  6.77 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  5.95  7.94 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  5.61  5.67 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  36.31  7.00 
* Formerly a Merrill Lynch Index.     
       Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   
The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur- 
bulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We invite you to visit www.blackrock.com/funds for our 
most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to 
continuing to serve you in the months and years ahead.     


Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had

accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of

BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of

BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is

scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT 3


Fund Summary as of August 31, 2009 BlackRock Defined Opportunity Credit Trust

Investment Objective

BlackRock Defined Opportunity Credit Trust (BHL) (the “Fund”) seeks high current income, with a secondary objective of long-term capital appreciation.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (2.65)% based on market price and (2.16)% based on net asset value (“NAV”). For the
same period, the closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a
NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between
performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and relatively low levels of lever-
age (less than 20%). On balance, that positioning benefited the Fund relative to its more highly levered Lipper competitors, although returns would have
been higher over the trailing six-month period had the Fund maintained a higher leverage balance. The Fund’s conservative positioning was a detractor dur-
ing the last six months given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which
benefited performance in 2008, to a balance of less than 3%, which has benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information               
  Symbol on New York Stock Exchange (“NYSE”)          BHL 
  Initial Offering Date          January 31, 2008 
  Yield on Closing Market Price as of August 31, 2009 ($11.03)1        6.53% 
  Current Monthly Distribution per Share2            $0.06 
  Current Annualized Distribution per Share2          $0.72 
  Leverage as of August 31, 20093            19% 
     1 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.           
     2 The distribution rate is not constant and is subject to change.         
     3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to 
         borrowings), minus the sum of liabilities (other than borrowing representing financial leverage). For a discussion of leveraging techniques utilized by 
         the Fund, please see The Benefits and Risks of Leveraging on page 10.         
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
                         8/31/09  8/31/08  Change  High  Low 
  Market Price                         $11.03  $12.66  (12.88)%  $13.29  $6.53 
  Net Asset Value                         $12.53  $14.31  (12.44)%  $14.35  $8.36 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments:     
       Portfolio Composition             
    8/31/09  8/31/08         
  Floating Rate Loan Interests  94%  99%         
  Corporate Bonds  6  1         

4 ANNUAL REPORT AUGUST 31, 2009


Fund Summary as of August 31, 2009 BlackRock Diversified Income Strategies Fund, Inc.

Investment Objective

BlackRock Diversified Income Strategies Fund, Inc. (DVF) (the “Fund”) seeks to provide investors with a high current income by investing primarily in a
diversified portfolio of floating rate debt securities and instruments, including floating or variable rate loans, bonds, preferred securities (including convert-
ible preferred securities), notes or other debt securities or instruments that pay a floating rate of interest.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (16.27)% based on market price and (23.82)% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. All returns
reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between perform-
ance based on price and performance based on NAV. Unlike other funds in the Lipper category, the Fund invests a significant amount of its portfolio in
fixed-rate, high yield corporate bonds, and a portion in high yield floating rate loan interests (“FRNs”). During the 12 months, fixed-rate, high yield bonds
outperformed leveraged loans and this contributed to performance. Conversely, the Fund’s credit quality has generally been skewed towards the lower credit
quality tiers, which had a negative impact on performance during the market’s fall in 2008. Though it has benefited the Fund in 2009 as markets rallied, on
balance, the positioning detracted relative to the Lipper category. The Fund’s allocation to high yield FRNs also hampered results as these issues underper-
formed. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in 2008, to a balance of
less than 3%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information                 
  Symbol on NYSE              DVF 
  Initial Offering Date            January 31, 2005 
  Yield on Closing Market Price as of August 31, 2009 ($8.80)1          11.93% 
  Current Monthly Distribution per Share2              $0.0875 
  Current Annualized Distribution per Share2              $1.0500 
  Leverage as of August 31, 20093              14% 
     1 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.             
  2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.0785. The Yield on 
  Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
         The new distribution rate is not constant and is subject to further change in the future.         
  3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to 
         any borrowings), minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized 
         by the Fund, please see The Benefits and Risks of Leveraging on page 10.         
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
        8/31/09  8/31/08  Change  High  Low 
  Market Price      $8.80  $12.77  (31.09)%  $13.04  $4.70 
  Net Asset Value      $8.74  $13.94  (37.30)%  $13.94  $5.35 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations 
  of the Fund’s corporate bond investments:               
       Portfolio Composition                   Credit Quality Allocations4     
  8/31/09  8/31/08        8/31/09  8/31/08 
  Corporate Bonds  49%  50%         AAA/Aaa        3% 
  Floating Rate Loan Interests  49  47         BBB/Baa        1 
  Common Stocks  2  3         BB/Ba      17%  7 
               B/B      37  61 
               CCC/Caa      34  20 
               CC/Ca      4  2 
               D      3   
               Not Rated    5  6 
        4 Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors 
                     Service (“Moody’s”) ratings.     

ANNUAL REPORT AUGUST 31, 2009 5


Fund Summary as of August 31, 2009 BlackRock Floating Rate Income Strategies Fund, Inc.

Investment Objective

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (the “Fund”) seeks high current income and such preservation of capital as is consistent with
investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (3.88)% based on market price and (8.88)% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. The per-
formance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group includes unleveraged continuously offered closed-
end funds. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between
performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and low levels of leverage (less
than 20%). On balance, that positioning benefited the Fund versus its more highly levered Lipper competitors. The Fund also had about 20% of its portfolio
in high yield corporate bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s conservative position-
ing was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which bene-
fited performance in 2008, to a balance of less than 3%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information                 
  Symbol on NYSE              FRA 
  Initial Offering Date            October 31, 2003 
  Yield on Closing Market Price as of August 31, 2009 ($12.26)1          8.79% 
  Current Monthly Distribution per Share2            $0.089835 
  Current Annualized Distribution per Share2            $1.078020 
  Leverage as of August 31, 20093              14% 
     1 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.             
     2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.081500. The Yield 
         on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
         The new distribution rate is not constant and is subject to further change in the future.         
     3 Represents loans outstanding as a percentage of managed assets, which is the total assets of the Fund, including any assets attributable to 
         any borrowing that may be outstanding, minus the sum of accrued liabilities (other than debt representing financial leverage). For a discussion 
         of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.     
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
        8/31/09  8/31/08  Change  High  Low 
  Market Price      $12.26  $14.49  (15.39)%  $14.68  $7.79 
  Net Asset Value      $12.93  $16.12  (19.79)%  $16.12  $8.96 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of 
  the Fund’s corporate bond investments:               
       Portfolio Composition                   Credit Quality Allocations4     
  8/31/09  8/31/08        8/31/09  8/31/08 
  Floating Rate Loan Interests  75%  73%         AA/Aa        5% 
  Corporate Bonds  24  26         BBB/Baa             12%  11 
  Common Stocks  1  1         BB/Ba      15  11 
               B/B      46  59 
               CCC/Caa      21  8 
               D/D      4   
               Not Rated    2  6 
                 4 Using the higher of S&P’s or Moody’s ratings.   

6 ANNUAL REPORT AUGUST 31, 2009


Fund Summary as of August 31, 2009 BlackRock Limited Duration Income Trust

Investment Objective

BlackRock Limited Duration Income Trust (BLW) (the “Fund”) seeks to provide current income and capital appreciation.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned 6.40% based on market price and (1.57)% based on NAV. For the same period, the closed-
end Lipper High Current Yield Funds (Leveraged) category posted an average return of (2.57)% on a market price basis and (10.55)% on a NAV basis. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. The Fund’s Lipper category is composed primarily of high yield securities. The Fund tends to invest 25% to
30% of its portfolio in investment-grade bonds, which helped relative performance as these securities outperformed high yield securities. Exposure to mort-
gage-backed securities and an overall conservative positioning in high yield securities also aided results. At the same time, the Fund typically invests about
30% to 40% of its portfolio in bank loans; this detracted modestly from relative performance as loans underperformed high yield securities during the
period. The Fund’s allocation to investment-grade credit, while performing strongly, was a detractor in the last six months of the period when returns trailed
that of high yield securities. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in
2008, to a balance of less than 18%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Symbol on NYSE              BLW 
Initial Offering Date            July 30, 2003 
Yield on Closing Market Price as of August 31, 2009 ($14.09)1          7.03% 
Current Monthly Distribution per Share2              $0.0825 
Current Annualized Distribution per Share2            $0.9900 
1 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.               
   2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.0700. The Yield on 
Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
       The new distribution rate is not constant and is subject to further change in the future.         
The table below summarizes the Fund’s market price and net asset value per share:       
      8/31/09  8/31/08  Change  High  Low 
Market Price      $14.09  $14.57  (3.29)%  $14.83  $ 8.83 
Net Asset Value      $14.95  $16.71  (10.53)%  $16.81  $11.86 
The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations 
of the Fund’s corporate bond and US government securities investments:         
     Portfolio Composition                   Credit Quality Allocations3     
  8/31/09  8/31/08        8/31/09  8/31/08 
Floating Rate Loan Interests  45%  46%         AAA/Aaa4    53%  47% 
Corporate Bonds  24  32         BBB/Baa      6  8 
U.S. Government Sponsored             BB/Ba      11  10 
   Agency Obligations  26  16         B      10  25 
U.S. Treasury Obligations  1  4         CCC/Caa      16  7 
Foreign Agency Obligations  2  2         C      1   
Asset-Backed Securities  2           D      1   
             Not Rated    2  3 
               3 Using the higher of S&P’s or Moody’s ratings.   
               4 Includes US Government Sponsored Agency securities and 
                   US Treasury Obligations, which are deemed AAA/Aaa by the 
                   investment advisor.       

ANNUAL REPORT AUGUST 31, 2009 7


Fund Summary as of August 31, 2009 BlackRock Senior Floating Rate Fund, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current income and such preservation of
capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (4.69)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds
category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector
positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also
had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s
conservative positioning was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment
balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

     Fund Information1               
                                                 Initial Offering Date            November 3, 1989 
                                                 Yield based on Net Asset Value as of August 31, 2009 ($7.16)2        3.60% 
                                                 Current Monthly Distribution per Share3            $0.021903 
                                                 Current Annualized Distribution per Share3          $0.257890 
                                                       1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.       
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.   
                                                           Past performance does not guarantee future results.           
                                                       3 The distribution is not constant and is subject to change.           
                                                 The table below summarizes the change in the Fund’s NAV per share:         
      8/31/09  8/31/08  Change  High  Low 
                                                 Net Asset Value      $7.16  $7.98  (10.28)%  $7.98  $5.54 
     Expense Example for Continuously Offered Closed-End Funds             
    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid 
  March 1, 2009  August 31, 2009  During the Period4  March 1, 2009 August 31, 2009 During the Period4 
BlackRock Senior Floating Rate, Inc.  $1,000  $1,232.80  $8.72  $1,000  $1,017.39  $7.88 
   4 Expenses are equal to the annualized expense ratio of 1.55%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year 
       period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.   
   5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.     
       See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.     

8 ANNUAL REPORT AUGUST 31, 2009


Fund Summary as of August 31, 2009 BlackRock Senior Floating Rate Fund II, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund II, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current income and such preservation
of capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (4.70)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds
category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector
positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also
had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s
conservative positioning was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment
balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

     Fund Information1               
                                                 Initial Offering Date              March 26, 1999 
                                                 Yield based on Net Asset Value as of August 31, 2009 ($7.76)2        3.44% 
                                                 Current Monthly Distribution per Share3            $0.022653 
                                                 Current Annualized Distribution per Share3          $0.266721 
                                                       1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.       
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.   
                                                           Past performance does not guarantee future results.           
                                                       3 The distribution is not constant and is subject to change.           
                                                 The table below summarizes the change in the Fund’s NAV per share:         
      8/31/09  8/31/08  Change  High  Low 
                                                 Net Asset Value      $7.76  $8.67  (10.50)%  $8.67 $6.02 
     Expense Example for Continuously Offered Closed-End Funds             
    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value     Expenses Paid 
  March 1, 2009  August 31, 2009  During the Period4  March 1, 2009 August 31, 2009  During the Period4 
BlackRock Senior Floating Rate II, Inc.  $1,000  $1,233.70  $9.46  $1,000  $1,016.74  $8.54 
   4 Expenses are equal to the annualized expense ratio of 1.68%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year 
       period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.   
   5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.     
       See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.     

ANNUAL REPORT AUGUST 31, 2009 9


The Benefits and Risks of Leveraging

BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income
Strategies Fund, Inc., BlackRock Floating Rate Income Strategies Fund, Inc.
and BlackRock Limited Duration Income Trust (each a “Fund” and collec-
tively, the “Funds”) may utilize leverage to seek to enhance the yield and
NAV. However, these objectives cannot be achieved in all interest rate
environments.

The Funds may utilize leverage through borrowings or through entering into
reverse repurchase agreements and dollar rolls. In general, the concept of
leveraging is based on the premise that the cost of assets to be obtained
from leverage will be based on short-term interest rates, which normally will
be lower than the income earned by each Fund on its longer-term portfolio
investments. To the extent that the total assets of each Fund (including the
assets obtained from leverage) are invested in higher-yielding portfolio
investments, each Fund’s shareholders will benefit from the incremental
net income.

The interest earned on securities purchased with the proceeds from lever-
age is paid to shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share NAV. However, in order to
benefit shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. If the
yield curve becomes negatively sloped, meaning short-term interest rates
exceed long-term interest rates, income to shareholders will be lower than if
the Fund had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million
and it borrows for an additional $30 million, creating a total value of $130
million available for investment in long-term securities. If prevailing short-
term interest rates are 3% and long-term interest rates are 6%, the yield
curve has a strongly positive slope. In this case, the Fund pays borrowing
costs and interest expense on the $30 million of borrowings based on the
lower short-term interest rates. At the same time, the securities purchased
by the Fund with assets received from the borrowings earn the income
based on long-term interest rates. In this case, the borrowing costs and
interest expense of the borrowings is significantly lower than the income
earned on the Fund’s long-term investments, and therefore Common
Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup on the
Shares will be reduced or eliminated completely. Furthermore, if prevailing
short-term interest rates rise above long-term interest rates of 6%, the yield
curve has a negative slope. In this case, the Fund pays interest expense on
the higher short-term interest rates whereas the Fund’s total portfolio earns
income based on lower long-term interest rates.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other fac-
tors can influence the value of portfolio investments. In contrast, the
redemption value of the Fund’s borrowings do not fluctuate in relation to
interest rates. As a result, changes in interest rates can influence the Fund’s
NAV positively or negatively in addition to the impact on Fund performance
from leverage from borrowings.

The use of leverage may enhance opportunities for increased income to
the Funds and shareholders, but as described above, it also creates risks
as short- or long-term interest rates fluctuate. Leverage also will generally
cause greater changes in each Fund’s NAV, market price and dividend rate
than a comparable portfolio without leverage. If the income derived from
securities purchased with assets received from leverage exceeds the cost
of leverage, each Fund’s net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, each Fund’s net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to shareholders will be reduced. Each Fund may be
required to sell portfolio securities at inopportune times or at distressed
values in order to comply with regulatory requirements applicable to the
use of leverage or as required by the terms of leverage instruments which
may cause the Funds to incur losses. The use of leverage may limit a
Funds’ ability to invest in certain types of securities or use certain types of
hedging strategies. Each Fund will incur expenses in connection with the
use of leverage, all of which are borne by the shareholders of each Fund
and may reduce income.

Under the Investment Company Act of 1940, the Funds are permitted
to borrow through their credit facility up to 33 1 / 3 % of their total managed
assets. As of August 31, 2009, BlackRock Limited Duration Income Trust
had no outstanding leverage and the other Funds had outstanding leverage
from borrowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
BHL  19% 
DVF  14% 
FRA  14% 

10 ANNUAL REPORT AUGUST 31, 2009


Derivative Financial Instruments

The Funds may invest in various derivative instruments, including swap
agreements, financial futures contracts, foreign currency exchange contracts
and options, as specified in Note 2 of the Notes to Financial Statements,
which constitute forms of economic leverage. Such instruments are used to
obtain exposure to a market without owning or taking physical custody of
securities or to hedge market and/or interest rate risks. Such derivative
instruments involve risks, including the imperfect correlation between the
value of a derivative instrument and the underlying asset, possible default
of the counterparty to the transaction and illiquidity of the derivative instru-

ment. The Funds’ ability to successfully use a derivative instrument
depends on the investment advisor’s ability to accurately predict pertinent
market movements, which cannot be assured. The use of derivative instru-
ments may result in losses greater than if they had not been used, may
require the Funds to sell or purchase portfolio securities at inopportune
times or for distressed values, may limit the amount of appreciation the
Funds can realize on an investment or may cause the Funds to hold a
security that it might otherwise sell. The Funds’ investments in these
instruments are discussed in detail in the Notes to Financial Statements.

Disclosure of Expenses for Continuously Offered Closed-End Funds

Shareholders of BlackRock Senior Floating Rate Fund, Inc. and
BlackRock Senior Floating Rate Fund II, Inc. may incur the following charges:
(a) expenses related to transactions, including early withdrawal fees; and
(b) operating expenses, including administration fees, and other Fund
expenses. The examples on the previous pages (which are based on a hypo-
thetical investment of $1,000 invested on March 1, 2009 and held through
August 31, 2009) are intended to assist shareholders both in calculating
expenses based on an investment in each Fund and in comparing
these expenses with similar costs of investing in other mutual funds.

The tables provide information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number under the
heading entitled “Expenses Paid During the Period.”

The tables also provide information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the tables are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as early withdrawal fees. Therefore, the hypothetical examples are useful
in comparing ongoing expenses only, and will not help shareholders deter-
mine the relative total expenses of owning different funds. If these trans-
actional expenses were included, shareholder expenses would have
been higher.

ANNUAL REPORT AUGUST 31, 2009 11


Schedule of Investments August 31, 2009   
Common Stocks    Shares   Value 
Capital Markets — 0.4%       
E*Trade Financial Corp. (a)  273,000 $  480,480 
Total Common Stocks — 0.4%      480,480 
    Par   
Corporate Bonds    (000)   
Chemicals — 0.2%       
Nalco Co., 8.25%, 5/15/17 (b)  USD  250  261,250 
Commercial Services & Supplies — 0.4%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)    400  401,000 
Containers & Packaging — 0.5%       
Crown Americas LLC, 7.63%, 5/15/17 (b)    280  277,900 
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16    280  278,600 
      556,500 
Diversified Financial Services — 0.2%       
FCE Bank Plc:       
     7.13%, 1/16/12  EUR  100  129,742 
     7.13%, 1/15/13    50  62,720 
      192,462 
Diversified Telecommunication Services — 0.8%       
PAETEC Holding Corp., 8.88%, 6/30/17 (b)  USD  250  238,125 
Qwest Corp., 3.88%, 6/15/13 (c)    750  693,750 
      931,875 
Food Products — 0.4%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    440  448,800 
Hotels, Restaurants & Leisure — 0.2%       
MGM Mirage, 11.13%, 11/15/17 (b)    240  259,800 
IT Services — 0.3%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    383  344,700 
Independent Power Producers & Energy Traders — 1.0%       
Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)  1,165  1,159,175 
Machinery — 0.2%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    200  202,000 
Media — 1.2%       
Cablevision Systems Corp., Series B, 8.00%, 4/15/12    710  725,975 
DIRECTV Holdings LLC, 8.38%, 3/15/13    650  666,250 
      1,392,225 
Paper & Forest Products — 0.2%       
Verso Paper Holdings LLC, 11.50%, 7/01/14 (b)    200  196,000 
Textiles, Apparel & Luxury Goods — 0.6%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  450  616,094 
Wireless Telecommunication Services — 1.3%       
Cricket Communications, Inc., 7.75%, 5/15/16 (b)  USD  1,500  1,455,000 
Total Corporate Bonds — 7.5%      8,416,881 
Floating Rate Loan Interests       
Aerospace & Defense — 1.0%       
Avio SpA:       
     Facility B2, 2.39%, 12/15/14    468  393,380 
     Facility C2, 3.01%, 12/14/15    500  420,000 
Hawker Beechcraft Acquisition Co., LLC:       
     LC Facility Deposit, 2.28%, 3/26/14    23  17,391 
     Term Loan, 2.26% – 2.60%, 3/26/14    395  294,670 
      1,125,441 

BlackRock Defined Opportunity Credit Trust (BHL) 
(Percentages shown are based on Net Assets) 
    Par   
Floating Rate Loan Interests    (000)   Value 
Auto Components — 3.6%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14  USD  2,172 $  1,854,027 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,301  995,881 
Delphi Corp. (a)(d):       
     Initial Tranche Term Loan C, 9.50%, 12/31/09    908  499,164 
     Subsequent Tranche Term Loan C, 9.50%, 12/31/09    92  50,836 
The Goodyear Tire & Rubber Co., Loan (Second Lien),       
     2.02%, 4/30/14    750  691,875 
      4,091,783 
Automobiles — 0.4%       
Ford Motor Co., Term Loan, 3.28% – 3.51%, 12/15/13    498  431,615 
Building Products — 1.6%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14    741  676,428 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.74%, 12/04/13  EUR  997  1,076,830 
      1,753,258 
Capital Markets — 0.4%       
Nuveen Investments, Inc., Term Loan, 3.49% – 3.50%,       
 11/13/14  USD  598  485,499 
Chemicals — 7.6%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14    800  813,373 
Brenntag Holding GmbH & Co. KG, Facility B2, 2.27%,       
 1/20/14    978  929,090 
Cognis GmbH, Facility C, 2.62%, 9/15/13    1,000  847,500 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14    987  941,326 
Matrix Acquisition Corp. (fka MacDermid, Inc.), Tranche B       
 Term Loan, 2.26%, 4/12/14    1,557  1,292,256 
Nalco Co., Term Loan, 6.50%, 5/06/16    1,225  1,241,844 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    1,000  550,000 
     Original Term Loan (First Lien), 3.52% – 3.75%,       
     7/31/14    1,239  1,021,448 
Solutia Inc., Loan, 7.25%, 2/28/14    987  977,389 
      8,614,226 
Commercial Services & Supplies — 4.2%       
ARAMARK Corp.:       
     LC Facility Letter of Credit, 0.22%, 1/26/14    120  111,797 
     U.S. Term Loan, 2.47%, 1/26/14    1,881  1,759,753 
Alliance Laundry Systems LLC, Term Loan, 2.79% – 4.75%,     
 1/27/12    737  706,447 
Casella Waste Systems, Inc., Term B Loan, 7.00%,       
 4/09/14    500  501,250 
Kion Group GmbH (formerly Neggio Holdings 3 GmbH):       
     Facility B, 2.51%, 12/29/14    500  317,188 
     Facility C, 2.76%, 12/29/15    500  317,188 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26% – 2.27%, 4/02/14    987  777,582 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13    209  198,498 
      4,689,703 
Computers & Peripherals — 0.8%       
Intergraph Corp., Initial Term Loan (First Lien), 2.37%,       
 5/29/14    1,000  960,000 
Containers & Packaging — 3.9%       
Crown Americas LLC, Additional Term B Dollar Loan,       
 2.02%, 11/15/12    495  487,887 
Graham Packaging Co., L.P., Term Loan B, 2.56%, 10/07/11  449  436,509 
Graphic Packaging International, Inc., Incremental Term       
 Loan, 3.08% – 3.35%, 5/16/14    1,480  1,442,975 
Smurfit Kappa Acquisitions (JSG):       
     C1 Term Loan Facility, 4.12% – 4.87%, 12/01/14  EUR  484  662,379 
     Term B1, 3.87% – 4.73%, 12/02/13    486  665,768 
Smurfit-Stone Container Enterprises, Inc., U.S. Term       
 Loan Debtor in Possession, 10.00%, 1/28/10    720  726,993 
      4,422,511 

See Notes to Financial Statements.

12 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Diversified Consumer Services — 1.3%       
Coinmach Laundry Corp., Delay Draw Term Loan,       
 3.28% – 3.43%, 11/14/14  USD  1,730  $ 1,470,989 
Diversified Telecommunication Services — 4.7%       
BCM Ireland Holdings Ltd. (Eircom):       
     Facility B, 2.37%, 9/30/15  EUR  492  641,866 
     Facility C, 2.62%, 9/30/16    492  641,938 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14  USD  506  307,082 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    1,972  1,932,952 
PAETEC Holding Corp., Replacement Term Loan, 2.76%,       
 2/28/13    193  182,138 
Time Warner Telecom Holdings Inc., Term Loan B,       
 2.02%, 1/07/13    152  148,532 
Wind Finance SL SA, Euro Facility (Second Lien), 7.70%,       
 12/17/14  EUR  1,000  1,437,910 
      5,292,418 
Electrical Equipment — 0.4%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  500  493,214 
Electronic Equipment, Instruments &       
Components — 2.2%       
Flextronics International Ltd.:       
     A Closing Date Loan, 2.53% – 2.85%, 10/1/2014    761  682,443 
     Delay Draw Term Loan, 2.76%, 10/01/14    219  196,104 
L-1 Identity Solutions Operating Co., Term Loan, 6.75%,       
 8/05/13    678  678,839 
Matinvest 2 SAS/Butterfly Wendel US, Inc.       
 (Deutsche Connector):       
     B-2 Facility, 2.97%, 6/22/14    886  496,037 
     C-2 Facility 3.22%, 6/22/15    732  409,854 
      2,463,277 
Energy Equipment & Services — 0.8%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    513  478,350 
Volnay Acquisition Co., I (aka CGG) B1 Term Loan Facility,       
 3.93% – 4.58%, 1/12/14    421  407,944 
      886,294 
Food & Staples Retailing — 1.9%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  1,000  1,394,856 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15  USD  500  517,500 
Wm. Bolthouse Farms, Inc., Term Loan (First Lien),       
 2.56%, 12/16/12    189  182,345 
      2,094,701 
Food Products — 2.7%       
Dole Food Co. Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13    127  128,241 
     Tranche B Term Loan, 8.00%, 4/12/13    223  224,177 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    830  835,304 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    1,894  1,915,765 
      3,103,487 
Health Care Equipment & Supplies — 2.9%       
Bausch & Lomb, Inc.:       
     Delayed Draw Term Loan, 3.51% – 3.85%,       
     4/24/2015    98  92,698 
     Parent Term Loan, 3.85%, 4/24/15    386  365,232 
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%,       
 3/25/15    1,323  1,268,924 

    Par   
Floating Rate Loan Interests    (000)           Value 
Health Care Equipment & Supplies (concluded)       
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26% – 3.60%, 5/20/14  USD  985  $ 940,675 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    141  136,067 
Iasis Healthcare:       
     Delayed Draw Term Loan, 2.26%, 3/14/14    120  113,037 
     Initial Term Loan, 2.26%, 3/14/14    347  326,645 
     Synthetic Line of Credit, 0.16%, 3/14/14    32  30,448 
      3,273,726 
Health Care Providers & Services — 10.9%       
CCS Medical, Inc. (Chronic Care), Term Loan (First Lien),     
 4.35%, 9/30/12 (a)(d)    275  124,094 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    164  153,120 
     Funded Term Loan, 2.51% — 2.62%, 7/25/14    3,233  3,011,726 
DaVita Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    800  767,666 
Fresenius AG:       
     Term Loan B1, 6.75%, 7/06/14    712  715,118 
     Term Loan B2, 6.75%, 7/06/14    430  431,963 
HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12    3,667  3,423,345 
HealthSouth Corp., Term Loan, 2.52% – 2.53%, 3/10/13  1,753  1,695,173 
Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14  343  309,417 
Symbion, Inc.:       
     Tranche A Term Loan, 3.51%, 8/23/13    474  414,358 
     Tranche B Term Loan, 3.51%, 8/25/14    474  414,358 
Vanguard Health Holding Co. II, LLC (Vanguard Health System,     
 Inc.), Replacement Term Loan, 2.51%, 9/23/11    858  834,974 
      12,295,312 
Health Care Technology — 0.4%       
Sunquest Information Systems, Inc. (Misys Hospital Systems,     
 Inc.), Term Loan, 3.52% – 3.74%, 10/13/14    491  447,856 
Hotels, Restaurants & Leisure — 3.4%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.), First Priority     
 Term Loan, 4.75%, 9/01/09 (a)(d)    1,000  550,000 
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.50%,       
 1/28/15    1,525  1,228,509 
Penn National Gaming, Inc., Term Loan B, 2.03% – 2.21%,     
 10/03/12    936  910,054 
QCE, LLC (Quiznos), Term Loan (First Lien), 2.88%,       
 5/05/13    987  735,522 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    180  164,908 
     Funded Project Loan, 6.10%, 5/27/13    318  291,270 
      3,880,263 
Household Durables — 2.3%       
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    1,428  1,409,490 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14  1,221  1,132,407 
      2,541,897 
Household Products — 0.3%       
VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B Term Loan,     
 2.28%, 4/24/14    341  311,733 
IT Services — 6.0%       
Amadeus Global Travel Distribution SA, GmbH       
 (WAM Acquisition):       
     Term Loan B, 2.28%, 7/01/13    955  835,558 
     Term Loan C, 2.78%, 7/01/14    955  835,558 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    1,977  1,692,520 
First Data Corp.:       
     Initial Tranche B-1 Term Loan, 3.01% – 3.02%,       
     9/24/14    741  616,994 
     Initial Tranche B-2 Term Loan, 3.01% – 3.02%,       
     9/24/14    1,027  854,350 
     Initial Tranche B-3 Term Loan, 3.01% – 3.02%,       
     9/24/14    986  819,922 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 13


Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
IT Services (concluded)       
SunGard Data Systems Inc:       
     (Solar Capital Corp.), New US Term Loan, 6.75%,     
     2/28/14  USD  898  $ 892,270 
     Term Loan B, 3.95% – 4.09%, 2/28/16    226  218,615 
      6,765,787 
Independent Power Producers & Energy Traders — 6.0%     
Dynegy Holdings Inc.:       
     Term LC Facility Term Loan, 4.02%, 4/02/13    208  199,925 
     Tranche B Term Loan, 4.02%, 4/02/13    17  16,176 
Mirant North America, LLC, Term Loan, 2.01%, 1/03/13  677  646,844 
NRG Energy, Inc.:       
     Credit-Linked Deposit, 0.50%, 2/01/13    164  154,241 
     Term Loan, 2.01% – 2.35%, 2/01/13    1,597  1,506,337 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    494  375,226 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    499  379,036 
     Initial Tranche B-3 Term Loan, 3.78% – 3.79%,       
     10/10/14    4,679  3,540,677 
      6,818,462 
Industrial Conglomerates — 0.7%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    989  842,978 
Insurance — 0.6%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    736  676,749 
Internet & Catalog Retail — 0.2%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14  236  233,672 
Life Sciences Tools & Services — 0.9%       
Life Technologies Corp., Term B Facility, 5.25%,       
 11/20/15    991  1,000,531 
Machinery — 3.1%       
LN Acquisition Corp. (Lincoln Industrial):       
     Delayed Draw Term Loan (First Lien), 2.83%,       
     7/11/14    254  227,803 
     Initial U.S. Term Loan (First Lien), 2.78% – 2.83%,     
     7/11/14    677  607,474 
Navistar Financial Corp., Tranche A Term Loan, 2.31%,     
 3/27/10    299  290,244 
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.36% – 3.51%,     
     1/19/12    533  496,000 
     Term Advance, 3.51%, 1/19/12    1,467  1,364,000 
Oshkosh Truck Corp., Term Loan B, 6.60% – 6.64%,       
 12/06/13    504  501,171 
      3,486,692 
Media — 28.9%       
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,     
 10/12/13    500  486,250 
Alpha Topco Ltd. (Formula One), Facility B2, 2.51%,       
 12/31/13    938  789,013 
Bresnan Communications, LLC, Additional Term Loan B     
 (First Lien), 2.51% – 2.61%, 6/30/13    448  429,360 
CSC Holdings Inc. (Cablevision), Incremental B Term Loan,     
 2.02% – 2.07%, 3/29/13    1,719  1,662,067 
Catalina Marketing Corp., Initial Term Loan, 3.03%,       
 10/01/14    797  748,603 
Cengage Learning Acquisitions, Inc. (Thomson Learning),     
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  1,900  1,824,000 
Cequel Communications, LLC, Term Loan, 2.27%,       
 11/05/13    2,463  2,326,430 

    Par   
Floating Rate Loan Interests    (000)           Value 
Media (concluded)       
Charter Communications Operating, LLC:       
     Replacement Term Loan, 6.25%, 3/06/14 (a)(d)  USD  1,284  $ 1,191,296 
     Term Loan B1, 7.94%, 3/25/14    1,500  1,499,250 
FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15    672  550,729 
Gray Television, Inc., Term Loan B, 3.78%, 12/31/14    480  346,190 
HMH Publishing Co., Ltd., Tranche A Term Loan, 5.26%,       
 6/12/14    2,011  1,556,311 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    495  208,715 
Hargray Acquisition Co./DPC Acquisition LLC/HCP       
 Acquisition LLC, Term Loan (First Lien), 2.72%, 6/27/14    487  443,974 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.76% – 3.10%, 6/30/14    525  428,700 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    500  477,143 
Intelsat Corp. (fka PanAmSat Corp.):       
     B-2-B Term Loan, 2.78%, 1/03/14    660  624,349 
     B-2-C Term Loan, 2.78%, 1/03/14    660  624,349 
     Tranche B-2-A Term Loan, 2.78%, 1/03/14    660  624,539 
Lamar Advertising Co.:       
     Term Loan B, 5.50%, 9/30/12    250  246,250 
     Term Loan E, 5.50%, 3/15/13    741  734,145 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.53%, 3/06/15  EUR  1,010  818,408 
     Facility C1, 3.78%, 3/04/16    1,010  818,408 
Local TV Finance, LLC Term Loan, 2.27%, 5/07/13  USD  964  658,440 
MCC Iowa LLC (Mediacom Broadband Group):       
     Tranche D-1 Term Loan, 2.01%, 1/31/15    376  351,197 
     Tranche E Term Loan, 6.50%, 11/30/15    823  823,951 
NTL Cable Plc B-7 Facility Term Loan, 5.39%, 3/09/12    469  709,198 
NV Broadcasting, LLC:       
     Term Loan, Debtor in Possession, 13.00%,       
     2/28/10  USD  239  236,238 
     Term Loan (First Lien), 5.25%, 11/01/13 (a)(d)    1,639  409,710 
Newsday, LLC:       
     Fixed Rate Term Loan, 9.75%, 8/01/13    250  254,375 
     Floating Rate Term Loan, 6.01%, 8/01/13    500  493,750 
Nielson Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    763  709,903 
     Class B Dollar Term Loan, 4.03%, 5/01/16    1,592  1,492,607 
Parkin Broadcasting, LLC Term Loan, 5.25%,       
 11/01/13 (a)(d)    336  84,042 
Sunshine Acquisition Ltd. (aka HIT Entertainment), Term       
 Facility, 2.73%, 6/01/12    1,751  1,455,341 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    1,395  1,402,854 
Tribune Co., Debtor in Possession Term Loan, 9.00%,       
 4/07/10    350  351,750 
UPC Financing Partnership, Facility U, 4.54%,       
 12/31/17  EUR  1,600  2,093,070 
Virgin Media Investment Holdings Ltd. (fka NTL):       
     B-1 Facility Term Loan, 3.89%, 7/30/12  GBP  206  308,698 
     C Facility, 3.62%, 7/17/13    165  236,378 
     Term Loan B, 5.39%, 3/09/12    281  424,260 
World Color Press Inc. and World Color (USA) Corp. (fka       
 Quebecor World Inc.), Advance, 9.00%, 7/21/12  USD  650  645,125 
      32,599,366 
Metals & Mining — 0.8%       
Essar Steel Algoma Inc. (fka Algoma Steel Inc.), Term       
 Loan, 2.77%, 6/20/13    990  890,909 

See Notes to Financial Statements.

14 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)         Value 
Multi-Utilities — 0.4%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.13%, 11/01/13  USD  443 $  407,773 
     Synthetic Letter of Credit, 0.48%, 11/01/13    57  52,540 
      460,313 
Multiline Retail — 1.3%       
Dollar General Corp., Tranche B-1 Term Loan,       
 3.01% – 3.24%, 7/07/14    1,500  1,458,958 
Oil, Gas & Consumable Fuels — 0.7%       
Big West Oil, LLC, Initial Advance Loan, 4.50%, 5/15/14  352  323,806 
Vulcan Energy Corp. (fka Plains Resources Inc.),       
 Term B3 Loan, 5.50%, 8/12/11    500  493,125 
      816,931 
Paper & Forest Products — 3.1%       
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,       
 12/20/12    2,291  2,213,236 
NewPage Corp., Term Loan, 4.06%, 12/22/14    1,389  1,286,169 
      3,499,405 
Personal Products — 0.9%       
American Safety Razor Co., LLC Loan (Second Lien),       
 6.52%, 1/30/14    1,250  975,000 
Pharmaceuticals — 0.6%       
Warner Chilcott Co., Inc., Tranche B Acquisition Date       
 Term Loan, 2.26% – 2.60%, 1/18/12    482  478,611 
Warner Chilcott Corp., Tranche C Acquisition Date       
 Term Loan, 2.26%, 1/18/12    216  214,523 
      693,134 
Professional Services — 0.9%       
Booz Allen Hamilton Inc., Tranche B Term Loan, 4.50%,     
 7/31/15    993  992,503 
Specialty Retail — 0.8%       
Adesa, Inc., (KAR Holdings, Inc.), Initial Term Loan,       
 2.52%, 10/20/13    400  375,333 
General Nutrition Centers, Inc., Term Loan,       
 2.52% – 2.85%, 9/16/13    552  507,469 
      882,802 
Textiles, Apparel & Luxury Goods — 0.4%       
Hanesbrands Inc., Term B Loan (First Lien),       
 5.02% – 5.25%, 9/05/13    436  436,135 
Wireless Telecommunication Services — 2.5%       
Digicel International Finance Ltd., Tranche A, 3.13%,       
 3/01/12    1,175  1,116,250 
MetroPCS Wireless, Inc., Tranche B Term Loan,       
 2.56% – 2.75%, 11/03/13    1,272  1,195,985 
Ntelos Inc., Term B Advance, 5.75%, 7/31/15    500  498,750 
      2,810,985 
Total Floating Rate Loan Interests — 116.5%      131,470,515 
Total Investments (Cost — $146,223,408*) — 124.4%    140,367,876 
Liabilities in Excess of Other Assets — (24.4)%      (27,505,826) 
Net Assets — 100.0%    $112,862,050 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost    $146,223,408 
       Gross unrealized appreciation    $ 2,824,269 
       Gross unrealized depreciation      (8,679,801) 
       Net unrealized depreciation    $ (5,855,532) 

(a) Non-income producing security.       
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
  These securities may be resold in transactions exempt from registration to qualified 
  institutional investors.         
(c) Variable rate security. Rate shown is as of report date.   
(d) Issuer filed for bankruptcy and/or is in default of interest payments.   
  Investments in companies considered to be an affiliate of the Fund, for purposes of 
  Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
          Net   
          Activity  Income 
  BlackRock Liquidity Funds, TempFund      $ 6,279 
  BlackRock Liquidity Series, LLC       
     Cash Sweep Series    $(2,365,561)  $13,793 
  For Fund compliance purposes, the Fund’s industry classifications refer to any 
  one or more of the industry sub-classifications used by one or more widely recog- 
  nized market indexes or ratings group indexes, and/or as defined by Fund manage- 
  ment. This definition may not apply for purposes of this report, which may combine 
  such industry sub-classifications for reporting ease.     
  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
            Unrealized 
  Currency  Currency    Settlement Appreciation 
  Purchased  Sold  Counterparty  Date  (Depreciation) 
  EUR  1,000 USD  1,434  Citibank NA  9/01/09   
  USD 9,015,715 EUR  6,450,000  Citibank NA  9/16/09  $ (231,252) 
  USD 2,682,215 GBP  1,641,000  Citibank NA     10/28/09  10,965 
  Total          $ (220,287) 
  Currency Abbreviations:         
  EUR  Euro         
  GBP  British Pound         
  USD  US Dollar         
  Financial Accounting Standards Board Statement of Financial Accounting Standards 
  No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes 
  a framework for measuring fair values and requires additional disclosures about the 
  use of fair value measurements. Various inputs are used in determining the fair value 
  of investments, which are as follows:       
  Level 1 — price quotations in active markets/exchanges for identical securities 
  Level 2 — other observable inputs (including, but not limited to: quoted prices for 
  similar assets or liabilities in markets that are active, quoted prices for identical or 
  similar assets or liabilities in markets that are not active, inputs other than quoted 
  prices that are observable for the assets or liabilities (such as interest rates, yield 
     curves, volatilities, prepayment speeds, loss severities, credit risks and default 
     rates) or other market-corroborated inputs)     
  Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about the 
  Fund’s policy regarding valuation of investments and other significant accounting poli- 
  cies, please refer to Note 1 of the Notes to Financial Statements.   

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 15


Schedule of Investments (concluded) BlackRock Defined Opportunity Credit Trust (BHL)

The following table summarizes the inputs used as of August 31, 2009 in 
determining the fair valuation of the Fund’s investments:     
Valuation      Investments in 
Inputs      Securities 
      Assets 
Level 1 — Common Stocks      $ 480,480 
Level 2       
 Long-Term Investments:       
   Corporate Bonds      8,416,881 
   Floating Rate Loan Interests      106,975,159 
Total Level 2      115,392,040 
Level 3 — Floating Rate Loan Interests      24,495,356 
Total      $140,367,876 
Valuation    Other Financial 
Inputs    Instruments1 
  Assets  Liabilities 
Level 1       
Level 2  $ 10,965  $ (231,252) 
Level 3    60,517   
Total  $ 71,482  $ (231,252) 
 1 Other financial instruments are foreign currency exchange contracts 
and unfunded loan commitments, which are valued at the unrealized 
appreciation/depreciation on the instrument.     
The following is a reconciliation of investments for unobservable inputs (Level 3) 
used in determining fair value:       
Investments in Securities

      Floating Rate 
      Loan Interests 
Balance, as of August 31, 2008      $ 4,841,355 
Accrued discounts/premiums       
Realized gain (loss)      (418,772) 
Change in unrealized appreciation (depreciation)2    (1,001,736) 
Net purchases (sales)      (981,612) 
Net transfers in/out of Level 3      22,056,121 
Balance as of August 31, 2009      $ 24,495,356 
 2 Included in the related net change in unrealized appreciation/depreciation 
     on the Statements of Operations.       
The following is a reconciliation of other financial instruments for unobservable 
inputs (Level 3) used in determining fair value:       
Other Financial Instruments3

      Assets 
Balance, as of August 31, 2008       
Accrued discounts/premiums       
Realized gain (loss)       
Change in unrealized appreciation (depreciation)     
Net purchases (sales)       
Net transfers in/out of Level 3      $ 60,517 
Balance as of August 31, 2009      $ 60,517 
 3 Other financial instruments are unfunded loan commitments.   

See Notes to Financial Statements.

16 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments August 31, 2009 BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)           Value 
North Street Referenced Linked Notes 2000-1     
 Ltd. Series 2005-8A Class D, 15.13%,     
 6/15/41 (a)(b)  USD 1,350  $ 528,255 
Total Asset-Backed Securities — 0.5%    528,255 
Common Stocks  Shares   
Building Products — 0.8%     
Masonite Worldwide Holdings (c)  20,955  847,630 
Capital Markets — 0.4%     
E*Trade Financial Corp. (c)  248,000  436,480 
Chemicals — 0.0%     
Wellman Holdings, Inc. (c)  1,613  403 
Electrical Equipment — 0.0%     
Medis Technologies Ltd. (c)  176,126  50,196 
Hotels, Restaurants & Leisure — 0.0%     
Buffets Restaurants Holdings, Inc. (c)  688  7 
Media — 0.3%     
Sirius XM Radio, Inc. (c)  435,000  292,973 
Metals & Mining — 0.0%     
Euramax International (c)  467  5,026 
Paper & Forest Products — 0.9%     
Ainsworth Lumber Co. Ltd.  311,678  449,830 
Ainsworth Lumber Co. Ltd. (b)(c)  349,782  503,215 
    953,045 
Software — 0.2%     
TiVo, Inc. (c)  21,000  206,010 
Total Common Stocks — 2.6%    2,791,770 
  Par   
Corporate Bonds  (000)   
Airlines — 0.3%     
United Air Lines, Inc., 12.75%, 7/15/12  USD 300  288,000 
Auto Components — 2.0%     
Allison Transmission, Inc., 11.00%, 11/01/15 (b)  63  56,700 
The Goodyear Tire & Rubber Co., 5.01%, 12/01/09 (a)  2,000  1,992,500 
Lear Corp., 8.75%, 12/01/16 (c)(d)  255  137,700 
    2,186,900 
Building Products — 2.2%     
CPG International I, Inc., 7.87%, 7/01/12 (a)  2,500  1,787,500 
Momentive Performance Materials, Inc. Series WI,     
 9.75%, 12/01/14  400  260,000 
Ply Gem Industries, Inc., 11.75%, 6/15/13  400  334,000 
    2,381,500 
Capital Markets — 1.2%     
E*Trade Financial Corp. (b):     
12.50%, 11/30/17 (e)  140  140,738 
3.16%, 8/31/19 (f)(g)  443  756,976 
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)  724  304,080 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(e)  301  72,335 
Marsico Parent Superholdco, LLC, 14.50%,     
 1/15/18 (b)(e)  208  54,083 
    1,328,212 

    Par   
Corporate Bonds    (000)           Value 
Chemicals — 1.3%       
American Pacific Corp., 9.00%, 2/01/15  USD  440  $ 397,100 
Wellman Holdings, Inc., Subordinate Note (f):       
     Second Lien, 10.00%, 1/29/19 (b)    894  894,000 
     Third Lien, 5.00%, 1/29/19    279  139,683 
      1,430,783 
Commercial Banks — 0.1%       
Glitnir Banki HF (b)(c)(d):       
     4.15%, 4/20/10    65  12,837 
     6.38%, 9/25/12    265  52,337 
     Series EMTN, 3.00%, 6/30/10  EUR  20  5,878 
      71,052 
Commercial Services & Supplies — 1.5%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)  USD  400  401,000 
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)    285  297,824 
West Corp., 11.00%, 10/15/16    985  908,662 
      1,607,486 
Construction Materials — 1.4%       
Nortek, Inc., 10.00%, 12/01/13    1,570  1,460,100 
Consumer Finance — 0.6%       
Ford Motor Credit Co. LLC, 3.26%, 1/13/12 (a)    815  678,487 
Containers & Packaging — 4.7%       
Berry Plastics Holding Corp., 4.50%, 9/15/14 (a)    2,235  1,609,200 
Crown Americas LLC, 7.63%, 5/15/17 (b)    210  208,425 
Graphic Packaging International, Inc., 9.50%, 6/15/17 (b)  420  430,500 
Packaging Dynamics Finance Corp., 10.00%, 5/01/16 (b)    1,570  502,400 
Smurfit Kappa Funding Plc, 7.75%, 4/01/15 (h)    1,000  810,000 
Solo Cup Co., 10.50%, 11/01/13 (b)    130  136,500 
Wise Metals Group LLC, 10.25%, 5/15/12    2,750  1,347,500 
      5,044,525 
Diversified Financial Services — 5.1%       
FCE Bank Plc, 7.125%, 1/16/12  EUR  2,400  3,113,800 
GMAC LLC (b):       
     7.25%, 3/02/11  USD  200  187,750 
     6.88%, 9/15/11    300  276,750 
     6.88%, 8/28/12    300  261,000 
     6.75%, 12/01/14    1,380  1,131,600 
     8.00%, 11/01/31    630  486,675 
      5,457,575 
Diversified Telecommunication Services — 1.2%       
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)    800  812,000 
PAETEC Holding Corp., 8.88%, 6/30/17 (b)    500  476,250 
      1,288,250 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15 (b)    80  80,800 
Food Products — 0.6%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    340  346,800 
Tyson Foods, Inc., 10.50%, 3/01/14    300  334,500 
      681,300 
Hotels, Restaurants & Leisure — 3.3%       
Harrah’s Operating Co., Inc. (b):       
     10.00%, 12/15/15    530  378,950 
     10.00%, 12/15/18    1,389  972,300 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
2/15/14 (b)(c)(d)    800  352,000 
MGM Mirage, 11.125%, 11/15/17 (b)    390  422,175 
Shingle Springs Tribal Gaming Authority, 9.38%, 6/15/15 (b)  95  67,450 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 17


Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)           Value 
Hotels, Restaurants & Leisure (concluded)       
Snoqualmie Entertainment Authority, 4.68%,       
 2/01/14 (a)(b)  USD  305  $ 149,450 
Travelport LLC, 4.986%, 9/01/14 (a)    810  587,250 
Tropicana Entertainment LLC Series WI, 9.63%,       
 12/15/14 (c)(d)    120  75 
Tunica-Biloxi Gaming Authority, 9.00%, 11/15/15 (b)    645  574,050 
      3,503,700 
Household Durables — 0.7%       
Standard Pacific Corp.:       
     6.25%, 4/01/14    140  109,900 
     7.00%, 8/15/15    465  365,025 
Stanley-Martin Communities LLC, 9.75%, 8/15/15    1,250  306,250 
      781,175 
IT Services — 1.0%       
Alliance Data Systems Corp., 1.75%, 8/01/13 (f)    370  329,300 
First Data Corp.:       
     9.88%, 9/24/15    255  218,025 
     11.25%, 3/31/16 (b)    60  45,900 
SunGard Data Systems, Inc., 4.88%, 1/15/14    549  494,100 
      1,087,325 
Independent Power Producers & Energy Traders — 2.4%       
AES Eastern Energy LP Series 99-B, 9.67%, 1/02/29    300  258,000 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)    500  497,500 
Dynegy Holdings, Inc., 8.38%, 5/01/16    650  526,500 
Energy Future Holdings Corp., 11.25%, 11/01/17 (e)    1,060  606,743 
NRG Energy, Inc., 8.50%, 6/15/19    250  243,125 
Texas Competitive Electric Holdings Co. LLC, 10.50%,       
 11/01/16 (e)    845  468,895 
      2,600,763 
Industrial Conglomerates — 2.0%       
Sequa Corp. (b):       
     11.75%, 12/01/15    1,530  963,900 
     13.50%, 12/01/15 (e)    2,278  1,190,476 
      2,154,376 
Insurance — 0.4%       
USI Holdings Corp., 4.32%, 11/15/14 (a)(b)    490  378,525 
Leisure Equipment & Products — 0.5%       
Brunswick Corp., 11.25%, 11/01/16 (b)    565  591,837 
Machinery — 1.9%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    200  202,000 
ESCO Corp., 4.50%, 12/15/13 (a)(b)    920  821,100 
RBS Global, Inc.:       
     9.50%, 8/01/14 (b)    199  183,080 
     8.88%, 9/01/16    505  405,262 
Titan International, Inc., 8.00%, 1/15/12    460  442,750 
      2,054,192 
Marine — 0.1%       
Navios Maritime Holdings, Inc., 9.50%, 12/15/14    141  123,375 
Media — 3.9%       
Affinion Group, Inc., 10.13%, 10/15/13    320  318,000 
CSC Holdings, Inc., 8.50%, 4/15/14 (b)    180  182,700 
Canadian Satellite Radio Holdings, Inc., 12.75%,       
 2/15/14    3,000  1,035,000 
Local Insight Regatta Holdings, Inc., 11.00%,       
 12/01/17    832  316,160 
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)    1,570  1,428,700 
Virgin Media, Inc., 6.50%, 11/15/16 (b)(f)    1,000  906,250 
      4,186,810 

    Par   
Corporate Bonds    (000)           Value 
Metals & Mining — 1.3%       
Aleris International, Inc. (c)(d):       
     9.00%, 12/15/14  USD  370  $ 925 
     10.00%, 12/15/16    500  1,250 
RathGibson, Inc., 11.25%, 2/15/14 (c)(d)    1,390  500,400 
Ryerson, Inc., 7.86%, 11/01/14 (a)    1,075  913,750 
      1,416,325 
Oil, Gas & Consumable Fuels — 3.7%       
Atlas Energy Operating Co., LLC, 12.13%, 8/01/17    425  448,375 
Atlas Energy Resources LLC, 10.75%, 2/01/18 (b)    155  156,550 
Chesapeake Energy Corp., 9.50%, 2/15/15    455  464,100 
Denbury Resources, Inc., 9.75%, 3/01/16    1,150  1,210,375 
Forest Oil Corp.:       
     8.50%, 2/15/14 (b)    640  643,200 
     7.25%, 6/15/19    200  188,000 
SandRidge Energy, Inc., 4.22%, 4/01/14 (a)    1,000  830,368 
      3,940,968 
Paper & Forest Products — 5.5%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(e)    2,689  1,065,996 
Clearwater Paper Corp., 10.63%, 6/15/16 (b)    190  203,537 
NewPage Corp.:       
     6.73%, 5/01/12 (a)    3,000  1,282,500 
     10.00%, 5/01/12    1,820  987,350 
Verso Paper Holdings LLC:       
     11.50%, 7/01/14 (b)    160  156,800 
     Series B, 4.23%, 8/01/14 (a)    4,000  2,240,000 
      5,936,183 
Pharmaceuticals — 1.2%       
Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (a)    1,500  1,260,000 
Real Estate Management & Development — 0.7%       
Realogy Corp.:       
     10.50%, 4/15/14    410  243,950 
     12.38%, 4/15/15    1,385  560,925 
      804,875 
Semiconductors & Semiconductor Equipment — 1.5%       
Avago Technologies Finance Pte. Ltd., 5.86%,       
6/01/13 (a)    400  376,000 
Spansion, Inc., 3.79%, 6/01/13 (b)(c)(d)    1,410  1,251,375 
      1,627,375 
Software — 0.0%       
BMS Holdings, Inc., 8.35%, 2/15/12 (a)(b)(e)    466  7,489 
Specialty Retail — 1.1%       
General Nutrition Centers, Inc., 6.40%, 3/15/14 (a)    145  127,600 
Michaels Stores, Inc., 11.38%, 11/01/16    910  782,600 
United Auto Group, Inc., 7.75%, 12/15/16    355  312,400 
      1,222,600 
Wireless Telecommunication Services — 4.2%       
BCM Ireland Preferred Equity Ltd., 8.28%,       
     2/15/17 (b)(e)  EUR  302  112,579 
Cricket Communications, Inc., 7.75%, 5/15/16 (b)  USD  1,000  970,000 
Crown Castle International Corp., 9.00%, 1/15/15    100  104,000 
Digicel Group Ltd. (b):       
     8.88%, 1/15/15    1,070  954,975 
     9.13%, 1/15/15 (e)    2,129  1,876,181 
iPCS, Inc., 2.61%, 5/01/13 (a)    200  164,000 
Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)    325  292,500 
      4,474,235 
Total Corporate Bonds — 57.7%      62,137,098 

See Notes to Financial Statements.

18 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)           Value 
Airlines — 0.4%       
US Airways Group, Inc., Loan, 2.76%, 3/21/14  USD  730  $ 393,105 
Auto Components — 2.8%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    1,930  1,647,680 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    874  668,955 
Delphi Corp. (c)(d):       
     Initial Tranche C Loan (Debtor in Possession),       
     10.50%, 12/31/09    908  499,164 
     Subsequent Tranche C Loan (Debtor in Possession),       
     9.50%, 12/31/09    93  50,836 
Intermet Corp.:       
     Letter of Credit, 0.16%, 11/09/10 (c)(d)    231  85,522 
     Synthetic Letter of Credit, 5.65%, 11/09/10 (e)    26  9,569 
     1st Lien Credit Facility, 5.65%, 11/08/10 (c)(d)(e)    115  22,978 
     1st Lien Credit Facility, 5.65%, 11/08/10 (e)    147  54,446 
      3,039,150 
Beverages — 0.2%       
Culligan International Co., Loan (Second Lien),       
 5.28%, 4/24/13  EUR  500  179,201 
Chemicals — 3.9%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14  USD  444  451,874 
Edwards (Cayman Islands II) Ltd., Term Loan       
 (First Lien), 2.85%, 5/31/14    276  171,303 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14    242  230,610 
Nalco Co., Term Loan B, 6.50%, 5/06/16    625  633,594 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    2,500  1,375,000 
     Term Loan (First Lien), 3.52% — 3.75%, 7/31/14    495  407,963 
Solutia Inc. Loan, 7.25%, 2/28/14    990  979,844 
      4,250,188 
Commercial Services & Supplies — 0.4%       
Casella Waste Systems, Term B Loan, 7.00%, 4/04/14    400  401,000 
Computers & Peripherals — 0.4%       
Intergraph Corp., Second Lien, Term Loan, 6.26% – 6.37%,       
 11/28/14    500  466,250 
Containers & Packaging — 0.8%       
Graham Packaging Co., LP, B Term Loan, 2.56%,       
 10/07/11    449  436,509 
Smurfit-Stone Container U.S. Term Loan Debtor in       
     Possession, 10.00%, 7/28/10    436  440,639 
      877,148 
Diversified Consumer Services — 1.4%       
Coinmach Corp., Term Loan, 3.28% – 3.43%, 11/14/14    1,728  1,468,860 
Diversified Telecommunication Services — 1.2%       
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14 (e)    1,518  921,245 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    324  318,003 
Paetec Holdings Corp., Incremental Term Loan, 2.76%,       
 2/28/13    84  79,507 
      1,318,755 
Electrical Equipment — 0.4%       
Generac Acquisition Corp., Term Loan (First Lien), 2.78%,       
 11/10/13    494  414,087 
Energy Equipment & Services — 1.3%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    571  532,315 
MEG Energy Corp.:       
     Delayed Draw Term Loan, 2.60%, 4/02/13    493  457,990 
     Initial Term Loan, 2.60%, 4/03/13    484  449,283 
      1,439,588 

    Par   
Floating Rate Loan Interests    (000)           Value 
Food & Staples Retailing — 0.9%       
McJunkin Corp., Term Loan, 3.51%, 1/31/14  USD  499  $ 475,032 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15    500  517,500 
      992,532 
Food Products — 3.1%       
Dole Food Co., Inc. :       
     Credit-Linked Deposit, 0.51%, 4/12/13    86  86,864 
     Tranche B Term Loan, 8.00%, 4/12/13    151  151,845 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    562  565,788 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    2,468  2,496,111 
      3,300,608 
Health Care Equipment & Supplies — 1.4%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%, 3/25/15  675  647,648 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26%, 5/20/14    739  705,506 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    142  136,067 
      1,489,221 
Health Care Providers & Services — 2.9%       
CCS Medical, Inc. (Chronic Care):       
     Loan (Debtor in Possession), 11.00%, 11/14/09    31  30,309 
     Term Loan (First Lien), 4.35%, 9/30/12 (c)(d)    525  236,906 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    30  27,947 
     Funded Term Loan, 2.51% – 2.62%, 7/25/14    585  544,964 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    275  263,885 
Fresenius AG:       
     Tranche B-1 Term Loan, 6.75%, 7/06/14    120  120,441 
     Tranche B-2 Term Loan, 6.75%, 7/06/14    84  84,039 
HCA Inc.:       
     Tranche A-1 Term Loan, 2.10%, 11/17/12    1,597  1,491,174 
     Tranche B-1 Term Loan, 2.85%, 11/18/13    387  364,407 
      3,164,072 
Hotels, Restaurants & Leisure — 1.5%       
Golden Nugget, Inc., Second Lien Term Loan, 3.52%,       
 12/31/14    175  73,500 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),       
 3.88%, 8/16/14    500  102,500 
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.50%,       
 1/28/15    438  352,521 
Lake at Las Vegas Joint Venture/LLV-1, LLC.:       
     Revolving Loan Credit-Linked Deposit Account,       
     12.35%, 12/12/12    120  2,407 
     Term Loan, 14.35% – 15.00%, 12/22/12 (c)(d)    1,215  24,305 
QCE, LLC (Quiznos), Term Loan (Second Lien), 5.98%,       
 2/26/13    1,000  460,000 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    76  69,692 
     Funded Project Loan, 6.10%, 5/25/13    548  501,063 
      1,585,988 
Household Durables — 0.8%       
American Residential Services LLC, Term Loan       
 (Second Lien), 12.00%, 4/17/15 (e)    1,020  889,871 
IT Services — 3.3%       
Audio Visual Services Group Inc.:       
     Loan (Second Lien), 7.10%, 2/28/14    520  41,592 
     Tranche B Term Loan (First Lien), 2.85%, 2/28/14  750  465,000 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    989  846,260 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 19


Schedule of Investments (continued)  BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
  (Percentages shown are based on Net Assets) 

    Par   
Floating Rate Loan Interests    (000)           Value 
IT Services (concluded)       
First Data Corp.:       
     Initial Tranche B-2 Term Loan, 3.01% – 3.02%,       
     9/24/14  USD  2,134  $ 1,775,203 
     Initial Tranche B-3 Term Loan, 3.01% – 3.02%,       
     9/24/14    121  100,816 
SunGard Data Systems Inc. (Solar Capital Corp.), Tranche B     
 U.S. Term Loan, 3.95% – 4.09%, 2/28/16    325  313,181 
      3,542,052 
Independent Power Producers & Energy Traders — 1.3%       
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    1,102  837,669 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    734  558,139 
      1,395,808 
Industrial Conglomerates — 0.3%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    397  338,590 
Insurance — 0.4%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    491  451,950 
Internet & Catalog Retail — 0.4%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14    472  467,344 
Life Sciences Tools & Services — 0.8%       
Life Technologies Corp., Term B Facility, 5.25%,       
 11/20/15    876  884,892 
Machinery — 2.6%       
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.35% – 3.36%,       
     1/19/12    800  744,000 
     Term Advance, 3.51%, 1/19/12    2,200  2,046,000 
      2,790,000 
Media — 16.7%       
Affinion Group Holdings, Inc., Loan, 8.27%, 3/01/10    1,205  1,054,198 
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,       
 10/12/13 (e)    506  492,195 
Cebridge Connections, Second Lien Term Loan, 4.79%,       
 5/05/14    2,000  1,802,500 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    1,000  960,000 
Cequel Communications, LLC, Tranche A Term Loan       
 (Second Lien), 2.27% – 4.25%, 11/05/13    789  745,163 
Charter Communications, Term Loan B1, 0%, 3/25/14 (c)(d)  1,515  1,514,242 
EB Sports Corp., Loan, 7.57%, 5/01/12 (e)    890  489,262 
Ellis Communications KDOC, LLC Loan, 10.00%, 12/30/11  1,939  543,006 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14 (e)    6,221  933,183 
     Tranche A Term Loan, 5.26%, 6/12/14    1,536  1,188,521 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    475  453,286 
Lamar Media Corp., Series E Incremental Loan, 5.50%,       
 3/15/13    247  244,715 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG)       
 Facility B1, 3.53%, 6/30/15  EUR  337  272,803 
Mediacom Illinois, LLC (fka Mediacom Communications,       
 LLC), Tranche D Term Loan, 4.50%, 3/31/17  USD  500  498,750 
Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13    2,000  2,035,000 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    603  561,398 
     Class B Dollar Term Loan, 4.03%, 5/01/16    1,260  1,180,367 
Penton Media, Inc.:       
     Loan (Second Lien), 5.49%, 2/01/14    1,000  210,000 
     Term Loan (First Lien), 2.51% – 2.73%, 2/01/13    978  654,925 
Sunshine Acquisition Ltd. (aka HIT Entertainment) Term       
 Facility, 2.73%, 7/31/14    325  270,156 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    496  499,228 

  Par   
Floating Rate Loan Interests  (000)           Value 
Media (concluded)     
United Pan Europe Communications, Term Loan, 3.76%,     
 12/31/16  USD 1,000  $ 982,500 
Virgin Media Investment Holdings Ltd., C Facility, 3.62%,     
 7/17/13  GBP 145  207,726 
World Color Press Inc. and World Color (USA) Corp.     
 (fka Quebecor World Inc.), Advance, 9.00%, 6/30/12  200  198,500 
    17,991,624 
Metals & Mining — 1.6%     
Euramax International, Inc., Domestic Term Loan:     
     14.00%, 6/29/13 (e)  USD 626  269,062 
     (Cash Pay), 10.00%, 6/29/13  643  276,616 
RathGibson Inc., Loan (Debtor in Possession),     
 10.50% – 10.75%, 2/10/10  1,148  1,147,507 
    1,693,185 
Multi-Utilities — 0.6%     
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):     
     Synthetic Letter of Credit, 0.48%, 11/01/13  74  68,302 
     Term B Advance (First Lien), 3.13%, 11/01/13  576  530,104 
    598,406 
Multiline Retail — 0.2%     
Dollar General Corp., Tranche B-2 Term Loan, 3.01%,     
 7/07/14  250  240,243 
Oil, Gas & Consumable Fuels — 3.3%     
Big West Oil, LLC, Initial Advance Loan, 6.50%, 5/15/14  288  265,259 
ScorpionDrilling Limited, Loan (Second Lien), 8.10%,     
 5/08/14  1,650  1,369,500 
Turbo Beta Ltd. Dollar Facility, 14.50%, 3/15/18 (e)  1,738  1,216,786 
Vulcan Energy Corp. (fka Plains Resources Inc), Term B3     
 Loan, 5.50%, 8/12/11  750  739,688 
    3,591,233 
Paper & Forest Products — 0.8%     
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,     
 12/20/12  835  806,982 
Pharmaceuticals — 0.5%     
Warner Chilcott Co., Inc.:     
     Tranche B Acquisition Date Term Loan, 2.26%,     
     1/18/12  369  366,804 
     Tranche C Acquisition Date Term Loan, 2.26%,     
     1/18/12  130  128,641 
    495,445 
Software — 1.4%     
Aspect Software, Inc. Loan (Second Lien), 7.31%,     
 7/11/12  2,500  1,512,500 
Total Floating Rate Loan Interests — 58.0%    62,469,878 
  Beneficial   
Other Interests (i)  Interest   
Diversified Financial Services — 0.2%     
JG Wentworth LLC Preferred Equity Interests  USD 271  228,566 
Hotels, Restaurants & Leisure — 0.0%     
Buffets, Inc.  360,000  36 
Total Other Interests — 0.2%    228,602 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Marsico Parent Superholdco, LLC, 16.75% (b)  48  12,240 
Total Preferred Stocks — 0.0%    12,240 

See Notes to Financial Statements.

20 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Warrants (j)    Shares    Value 
Hotels, Restaurants & Leisure — 0.0%         
Buffets Restaurants Holdings, Inc. (expires 4/29/14)    304  $ 3 
Other — 0.0%         
Turbo Cayman Ltd. (No Expiration)    1     
Total Warrants — 0.0%        3 
Total Long-Term Investments         
(Cost — $177,149,788) — 119.0%        128,167,846 
Short-Term Securities         
BlackRock Liquidity Funds, TempFund, 0.22% (k)(l)    2,371,578    2,371,578 
Total Short-Term Securities         
(Cost — $2,371,578) — 2.2%        2,371,578 
Options Purchased    Contracts     
Over-the-Counter Call Options         
Marsico Parent Superholdco LLC, expiring December         
 2019 at USD 942.86, Broker Goldman Sachs & Co.  13    13,000 
Total Options Purchased (Cost — $12,711) — 0.0%        13,000 
Total Investments (Cost — $179,534,077*) — 121.2%      130,552,424 
Liabilities in Excess of Other Assets — (21.2)%        (22,996,029) 
Net Assets — 100.0%      $107,556,395 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost      $180,146,320 
       Gross unrealized appreciation      $ 3,424,595 
       Gross unrealized depreciation        (53,018,491) 
       Net unrealized depreciation      $ (49,593,896) 
(a) Variable rate security. Rate shown is as of report date.     
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
These securities may be resold in transactions exempt from registration to qualified 
       institutional investors.         
 (c) Non-income producing security.         
(d) Issuer filed for bankruptcy and/or is in default of interest payments.     
 (e) Represents a payment-in-kind security which may pay interest/dividends in addi- 
       tional par/shares.         
 (f) Convertible security.         
 (g) Represents a zero-coupon bond. Rate shown reflects the current yield as of report 
       date.         
(h) All, or a portion of security, pledged as collateral in connection with swaps. 
 (i) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
       zation entities and are non-income producing.         
 (j) Warrants entitle the Fund to purchase a predetermined number of shares of com- 
       mon stock and are non-income producing. The purchase price and number of 
shares are subject to adjustment under certain conditions until the expiration date. 
 (k) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
    Net     
       Affiliate    Activity    Income 
       BlackRock Liquidity Funds, TempFund  $ 2,371,578    $ 2,468 
       BlackRock Liquidity Series, LLC         
Cash Sweep Series  $(5,592,405)    $17,999 
 (l) Represents the current yield as of report date.         

  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or ratings group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine 
  industry sub-classifications for reporting ease.       
  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
                          Unrealized 
  Currency      Currency          Settlement Appreciation 
  Purchased         Sold    Counterparty  Date (Depreciation) 
  USD 195,257 EUR  140,000    Citibank NA  9/15/09  $ (5,452) 
  USD 397,270 EUR  280,000    Citibank NA  9/16/09  (4,149) 
  USD 3,161,838  EUR   2,264,500  Deutsche Bank AG 9/16/09  (84,636) 
  USD  326,927  CAD  355,000  Barclays Bank Plc 10/28/09  2,622 
  GBP 165,000 USD  269,693    Citibank NA  10/28/09  (1,102) 
  Total                      $ (92,717) 
  Interest rate swaps outstanding as of August 31, 2009 were as follows: 
                      Notional   
  Fixed  Floating              Amount  Unrealized 
  Rate   Rate    Counterparty Expiration   (000)    Depreciation 
  4.82% (m) 3-month    JPMorgan      January       
       LIBOR    Chase Bank NA      2013 USD 20,000  $(1,751,189) 
   (m) Pays fixed rate and receives floating rate.       
  Credit default swaps on single-name issues — buy protection outstanding as of 
  August 31, 2009 were as follows:               
        Pay              Notional  Unrealized 
         Fixed              Amount Appreciation 
  Issuer     Rate    Counterparty  Expiration  (000) (Depreciation) 
  Host Hotel &        Goldman Sachs             
   Resorts LP   5.00%    Bank USA    March 2014  USD 1,275 $ (177,446) 
  Masco        JPMorgan               
   Corp.   5.30%  Chase Bank NA   March 2014 USD  500  (55,080) 
  Mohawk                       
   Industries,        JPMorgan               
   Inc.   4.45%  Chase Bank NA   March 2014 USD  500  (49,615) 
  Brunswick        Goldman Sachs September       
   Corp.   5.00%    Bank USA        2014  USD  100  561 
  Standard                       
   Pacific        Credit Suisse  September       
   Corp.   5.00%    International      2014  USD  270  10,739 
  Total                      $ (270,841) 
  Credit default swaps on traded index — sold protection outstanding as of August 31, 
  2009 were as follows:                   
      Receive              Notional   
       Fixed    Counter-        Credit  Amount  Unrealized 
  Index   Rate    party Expiration Rating1  (000)2 Depreciation 
  Aces High  5.00%    Morgan  March    CCC  USD 6,736  $(2,024,770) 
   Yield Index        Stanley  2010           
             Capital               
          Services, Inc.               
  Credit default swaps on single-name issues — sold protection outstanding as of 
  August 31, 2009 were as follows:               
      Receive              Notional   
       Fixed    Counter-        Credit  Amount  Unrealized 
  Issuer   Rate    party Expiration Rating3  (000)2 Depreciation 
  BAA    2.00%   Deutsche  March  A–  GBP  300  $ (96,206) 
   Ferrovial        Bank AG  2012           
   Junior Term                       
   Loan                       
   1  Using Standard & Poor’s weighted average ratings of the underlying securities 
    in the index.                     
   2  The maximum potential amount the Fund may pay should a negative credit 
    event take place under the terms of the agreement. See Note 2 of the Notes to 
    Financial Statements.               
   3  Using Standard & Poor’s rating of the issuer.       

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 21


Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

Currency Abbreviations:
CAD Canadian Dollar
EUR Euro
GBP British Pound
USD US Dollar
Effective September 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments,” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are active, quoted prices for identi-
cal or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks
and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in 
determining the fair valuation of the Fund’s investments:   
Valuation    Investments in 
Inputs    Securities 
    Assets 
Level 1     
 Long-Term Investments:     
   Common Stocks    $ 2,283,119 
 Short-Term Securities    2,371,578 
Total Level 1    4,654,697 
Level 2     
 Long-Term Investments:     
   Common Stocks    503,215 
   Corporate Bonds    61,103,415 
   Floating Rate Loan Interests    36,916,830 
   Preferred Stocks    12,240 
Total Level 2    98,535,700 
Level 3     
 Long-Term Investments:     
   Asset-Backed Securities    528,255 
   Common Stocks    5,436 
   Corporate Bonds    1,033,683 
   Floating Rate Loan Interests    25,553,048 
   Other Interests    228,602 
   Warrants    3 
Total Level 3    27,349,027 
Total    $130,539,424 
Valuation  Other Financial 
Inputs  Instruments1 
  Assets  Liabilities 
Level 1     
Level 2  $ 26,922  $ (4,249,645) 
Level 3  38,010   
Total  $ 64,932  $ (4,249,645) 
 1 Other financial instruments are swaps, foreign currency exchange contracts, 
     options purchased and unfunded loan commitments. Swaps, foreign currency 
exchange contracts and unfunded loan commitments are valued at the unreal- 
     ized appreciation/depreciation on the instrument and options purchased are 
     shown at market value.     

See Notes to Financial Statements.

22 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (concluded) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
        Investments in Securities       
  Asset-Backed    Common  Corporate  Floating Rate  Other     
  Securities    Stocks  Bonds  Loan Interests  Interests  Warrants  Total 
Balance, as of August 31, 2008          $17,146,004        $17,146,004 
Accrued discounts/premiums                   
Realized gain (loss)          (5,893,500)        (5,893,500) 
Change in unrealized appreciation1  $ 466,236  $ 5,033  $ (50,717)  2,373,735        2,794,287 
Net purchases (sales)          (10,472,926)        (10,472,926) 
Net transfers in/out of Level 3  62,019    403  1,084,400  22,399,735  $ 228,602  $ 3  23,775,162 
Balance as of August 31, 2009  $ 528,255  $ 5,436  $ 1,033,683  $25,553,048  $ 228,602  $ 3  $27,349,027 
1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.           
The following is a reconciliation of other financial instruments for unobservable inputs             
(Level 3) used in determining fair value:                   
  Other Financial               
  Instruments2                 
  Assets                 
Balance, as of August 31, 2008                   
Accrued discounts/premiums                   
Realized gain (loss)                   
Change in unrealized appreciation (depreciation)                   
Net purchases (sales)                   
Net transfers in/out of Level 3  $ 38,010                 
Balance as of August 31, 2009  $ 38,010                 
 2 Other financial instruments are unfunded loan commitments.                   

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 23


Schedule of Investments August 31, 2009 BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Common Stocks    Shares           Value 
Building Products — 0.6%       
Masonite Worldwide Holdings (a)    33,758  $ 1,365,511 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc. (a)    13,117  5,036 
Wellman Holdings, Inc.    430  107 
      5,143 
Electrical Equipment — 0.0%       
Medis Technologies Ltd. (a)    71,654  20,421 
Energy Equipment & Services — 0.3%       
Trico Marine Services, Inc. (a)  119,185  810,458 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co., Ltd. (a)  136,289  196,699 
Ainsworth Lumber Co., Ltd. (a)(b)  152,951  220,043 
Western Forest Products, Inc. (a)(b)    84,448  20,056 
      436,798 
Total Common Stocks — 1.1%      2,638,331 
    Par   
Corporate Bonds    (000)   
Auto Components — 1.9%       
The Goodyear Tire & Rubber Co., 5.01%, 12/01/09 (c)  USD  4,500  4,483,125 
Building Products — 2.0%       
CPG International I, Inc.:       
     7.87%, 7/01/12 (c)    3,500  2,502,500 
     10.50%, 7/01/13    2,300  1,644,500 
Momentive Performance Materials, Inc., Series WI,       
 9.75%, 12/01/14    750  487,500 
      4,634,500 
Capital Markets — 0.3%       
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)    1,168  490,560 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(d)    486  116,671 
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (b)(d)  335  86,990 
      694,221 
Chemicals — 0.6%       
GEO Specialty Chemicals, Inc.:       
     10.00%, 3/31/15    844  548,704 
     7.50%, 3/31/15 (b)(e)    852  553,506 
Wellman Holdings, Inc., Third Lien Subordinate Note,       
 5.00%, 1/29/19 (e)    442  220,823 
      1,323,033 
Commercial Services & Supplies — 0.3%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)    800  802,000 
Construction Materials — 1.0%       
Nortek, Inc., 10.00%, 12/01/13    2,540  2,362,200 
Containers & Packaging — 1.8%       
Clondalkin Acquisition BV, 2.63%, 12/15/13 (b)(c)    4,000  3,200,000 
Crown European Holdings SA, 6.25%, 9/01/11  EUR  15  21,504 
Owens Brockway Glass Container, Inc., 6.75%,       
 12/01/14    143  198,856 
Packaging Dynamics Finance Corp., 10.00%,       
 5/01/16 (b)  USD  2,350  752,000 
      4,172,360 
Diversified Financial Services — 2.2%       
FCE Bank Plc, 7.13%, 1/16/12  EUR  4,000  5,189,667 
Diversified Telecommunication Services — 1.8%       
PAETEC Holding Corp., 8.88%, 6/30/17 (b)  USD  1,150  1,095,375 
Qwest Corp., 3.88%, 6/15/13 (c)    3,500  3,237,500 
      4,332,875 

    Par   
Corporate Bonds    (000)  Value 
Food & Staples Retailing — 0.2%       
AmeriQual Group LLC, 9.50%, 4/01/12 (b)  USD  250  $ 162,500 
Duane Reade, Inc., 11.75%, 8/01/15 (b)    190  191,900 
      354,400 
Food Products — 0.4%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    900  918,000 
Health Care Equipment & Supplies — 0.5%       
DJO Finance LLC, 10.88%, 11/15/14    1,320  1,267,200 
Hotels, Restaurants & Leisure — 2.4%       
American Real Estate Partners LP, 7.13%, 2/15/13    5,000  4,750,000 
Harrah’s Operating Co., Inc., 10.00%, 12/15/18 (b)    413  289,100 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
 2/15/14 (a)(b)(f)    1,565  688,600 
      5,727,700 
IT Services — 0.8%       
First Data Corp.:       
     9.88%, 9/24/15    1,020  872,100 
     11.25%, 3/31/16 (b)    1,190  910,350 
      1,782,450 
Independent Power Producers & Energy Traders — 1.4%     
Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)  2,120  2,109,400 
Texas Competitive Electric Holdings Co., LLC, 10.25%,     
11/01/15    2,005  1,328,312 
      3,437,712 
Industrial Conglomerates — 0.5%       
Sequa Corp. (b):       
     11.75%, 12/01/15    640  403,200 
     13.50%, 12/01/15 (d)    1,700  888,231 
      1,291,431 
Machinery — 0.8%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    500  505,000 
Sunstate Equipment Co., LLC, 10.50%, 4/01/13 (b)    2,000  1,500,000 
      2,005,000 
Media — 1.6%       
CSC Holdings, Inc.:       
     8.50%, 4/15/14 (b)    420  426,300 
     Series B, 7.63%, 4/01/11    2,000  2,025,000 
Cablevision Systems Corp. Series B, 8.00%, 4/15/12  975  996,937 
Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17  1,244  472,720 
      3,920,957 
Metals & Mining — 0.4%       
FMG Finance Property Ltd., 4.36%, 9/01/11 (b)(c)    265  265,000 
Ryerson, Inc., 7.86%, 11/01/14 (c)    900  765,000 
      1,030,000 
Oil, Gas & Consumable Fuels — 0.6%       
SandRidge Energy, Inc., 4.22%, 4/01/14 (c)    1,600  1,328,589 
Paper & Forest Products — 2.3%       
Ainsworth Lumber Co., Ltd., 11.00%, 7/29/15 (b)(d)  1,176  466,135 
NewPage Corp.:       
     10.00%, 5/01/12    2,000  1,085,000 
     6.73%, 5/01/12 (c)    3,925  1,677,937 
Verso Paper Holdings LLC, Series B, 4.23%, 8/01/14 (c)  4,000  2,240,000 
      5,469,072 
Pharmaceuticals — 1.4%       
Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (c)  1,190  999,600 
Elan Finance Plc, 4.44%, 11/15/11 (c)    2,500  2,350,000 
      3,349,600 

See Notes to Financial Statements.

24 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 1.4%       
Avago Technologies Finance Pte. Ltd., 5.86%,       
 6/01/13 (c)  USD  900  $ 846,000 
Spansion, Inc., 3.79%, 6/01/13 (a)(b)(f)    2,870  2,547,125 
      3,393,125 
Specialty Retail — 0.1%       
General Nutrition Centers, Inc., 6.40%, 3/15/14 (c)    290  255,200 
Wireless Telecommunication Services — 1.8%       
Cricket Communications, Inc., 7.75%, 5/15/16 (b)    2,500  2,425,000 
Crown Castle International Corp., 9.00%, 1/15/15    255  265,200 
Digicel Group Ltd., 9.13%, 1/15/15 (b)(d)    278  244,987 
iPCS, Inc., 2.61%, 5/01/13 (c)    1,500  1,230,000 
      4,165,187 
Total Corporate Bonds — 28.5%      67,689,604 
Floating Rate Loan Interests       
Aerospace & Defense — 2.5%       
Avio SpA:       
     Dollar Mezzanine Term Loan, 4.26%, 12/13/16 (d)    2,123  955,402 
     Facility B2, 2.39%, 12/15/14    1,661  1,395,506 
     Facility C2, 3.01%, 12/14/15    1,771  1,487,671 
Hawker Beechcraft Acquisition Co., LLC:       
     Letter of Credit Facility Deposit, 2.28%, 3/26/14    137  102,306 
     Term Loan, 2.26% – 2.60%, 3/26/14    2,325  1,733,406 
IAP Worldwide Services, Inc., Term Loan (First-Lien),       
 7.25%, 12/30/12 (d)    175  126,292 
      5,800,583 
Airlines — 0.8%       
Delta Air Lines, Inc., Credit- Linked Deposit Loan,       
 0.11% – 2.28%, 4/30/12    1,225  1,093,823 
US Airways Group, Inc., Loan, 2.76%, 3/21/14    1,460  786,210 
      1,880,033 
Auto Components — 3.0%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    4,825  4,119,199 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,551  1,187,394 
Delphi Corp. (a)(f):       
     Initial Tranche Term Loan C, 10.50%, 12/31/09    2,269  1,247,910 
     Subsequent Tranche Term Loan C, 9.50%, 12/31/09    231  127,090 
GPX International Tire Corp.:       
     Term Loan, 12.00%, 4/11/12 (d)    22  6,626 
     Tranche B Term Loan, 10.25%, 3/30/12 (a)(f)    1,280  384,097 
      7,072,316 
Beverages — 0.1%       
Culligan International Co., Loan (Second Lien), 5.28%,       
 4/24/13  EUR  500  179,201 
Building Products — 1.2%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14  USD  1,968  1,795,500 
PGT Industries, Inc., Tranche A-2 Term Loan, 7.25%,       
 2/14/12    1,752  1,086,352 
      2,881,852 
Capital Markets — 0.6%       
RiskMetrics Group Holdings, LLC, Term B Loan (First Lien),     
 2.60%, 1/10/14    1,449  1,407,720 
Chemicals — 5.5%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    1,177  1,197,465 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.85%, 5/31/14    490  303,800 

    Par   
Floating Rate Loan Interests    (000)           Value 
Chemicals (concluded)       
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14  USD  1,470  $ 1,401,400 
Nalco Co., Term Loan, 6.50%, 5/06/16    2,450  2,483,688 
PQ Corp. (fka Niagara Acquisition, Inc.), Original Term       
 Loan (First Lien), 3.52% – 3.75%, 7/31/14    3,960  3,263,701 
Solutia Inc., Loan, 7.25%, 2/28/14    4,462  4,416,704 
      13,066,758 
Commercial Services & Supplies — 0.8%       
Casella Waste Systems, Inc., Term B Loan, 7.00%,       
 4/09/14    750  751,875 
John Maneely Co., Term Loan, 3.52% – 3.76%, 12/09/13    846  663,063 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13    533  505,807 
      1,920,745 
Computers & Peripherals — 0.4%       
Intergraph Corp.:       
     Initial Term Loan (First Lien), 2.37%, 5/29/14    419  401,943 
     Second Lien Term Loan, 6.26% – 6.37%, 11/28/14    500  466,250 
      868,193 
Construction Materials — 0.4%       
Headwaters Inc., Term Loan B1 (First Lien), 9.75%,       
 4/30/11    1,012  979,576 
Containers & Packaging — 1.8%       
Graham Packaging Co.:       
     B Term Loan, 2.56%, 10/07/11    109  105,644 
     Term Loan C, 6.75%, 4/27/14    1,087  1,084,386 
Graphic Packaging International, Inc., Incremental Term       
 Loan, 3.08% – 3.35%, 5/16/14    1,970  1,920,750 
Smurfit-Stone Container Enterprises, Inc., U.S. Term Loan       
 Debtor in Possession, 10.00%, 1/28/10    1,155  1,167,020 
      4,277,800 
Distributors — 0.3%       
Keystone Automotive Operations, Inc., Loan,       
 3.77% – 5.75%, 1/12/12    1,419  773,397 
Diversified Consumer Services — 1.0%       
Coinmach Service Corp., Term Loan, 3.28% – 3.43%,       
 11/14/14    2,715  2,308,208 
Diversified Telecommunication Services — 1.0%       
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    774  758,381 
PAETEC Holding Corp., Incremental Term Loan, 2.76%,       
 2/28/13    169  159,006 
Wind Finance SL SA Euro Facility (Second Lien), 7.70%,       
 12/17/14  EUR  1,000  1,437,910 
      2,355,297 
Electrical Equipment — 0.6%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  1,000  986,429 
Generac Acquisition Corp., Lien Term Loan (First Lien),       
 2.78%, 11/10/13    548  459,740 
      1,446,169 
Energy Equipment & Services — 1.2%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    1,200  1,118,400 
MEG Energy Corp.:       
     Delayed Draw Term Loan, 2.60%, 4/02/13    986  915,980 
     Initial Term Loan, 2.60%, 4/03/13    968  898,566 
      2,932,946 
Food & Staples Retailing — 2.9%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  3,000  4,184,567 
DSW Holdings, Inc., Loan, 2.52%, 10/27/12  USD  919  827,500 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 25


Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)           Value 
Food & Staples Retailing (concluded)       
McJunkin Corp., Term Loan, 3.51%, 1/31/14  USD  499  $ 475,032 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15  1,000  1,035,000 
Wm. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,     
 12/16/12    378  364,690 
      6,886,789 
Food Products — 3.2%       
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13    390  392,601 
     Tranche B Term Loan, 8.00%, 4/12/13    682  686,302 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%, 4/12/13  2,541  2,557,222 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%, 10/06/14  3,925  3,968,817 
      7,604,942 
Health Care Equipment & Supplies — 1.4%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%, 3/25/15  2,250  2,158,828 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26% – 3.60%, 5/20/14    985  940,675 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    212  204,100 
      3,303,603 
Health Care Providers & Services — 6.7%       
CCS Medical, Inc. (Chronic Care):       
     Loan Debtor in Possession, 11.00%, 11/14/09    31  30,309 
     Term Loan (First Lien), 4.35%, 9/30/12 (a)(f)    750  338,437 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    221  206,215 
     Funded Term Loan, 2.51%, 7/25/14    4,319  4,024,123 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    1,000  959,583 
Fresenius AG:       
     Term Loan B1, 6.75%, 7/06/14    1,478  1,485,952 
     Term Loan B2, 6.75%, 7/06/14    903  907,957 
HCA Inc.:       
     Tranche A-1 Term Loan, 2.10%, 11/17/12    3,512  3,278,934 
     Tranche B-1 Term Loan, 2.85%, 11/18/13    3,098  2,915,255 
Vanguard Health Holding Co., II, LLC (Vanguard Health     
System, Inc.), Replacement Term Loan, 2.51%, 9/23/11  1,769  1,721,591 
      15,868,356 
Hotels, Restaurants & Leisure — 2.7%       
Golden Nugget, Inc., Second Lien Term Loan, 3.52%,       
 12/31/14    250  105,000 
Green Valley Ranch Gaming, LLC, Second Lien Term Loan,     
 3.88%, 8/16/14    500  102,500 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.50%, 1/28/15    208  167,785 
     Term B-2 Loan, 3.50%, 1/28/15    2,450  1,974,117 
     Term B-3 Loan, 3.50% – 3.60%, 1/28/15    184  147,842 
Penn National Gaming, Inc., Term Loan B, 2.01 – 2.21%,     
 10/03/12    1,136  1,104,234 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.88%,     
 5/15/13    979  729,086 
Travelport LLC (fka Travelport Inc.):       
     Original Post-First Amendment and Restatement       
     Synthetic Letter of Credit Loan, 3.10%, 8/23/13    178  160,153 
     Tranche B Dollar Term Loan, 2.76% – 3.10%, 8/23/13  889  798,171 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    383  350,225 
     Funded Project Loan, 6.10%, 5/27/13    864  790,220 
      6,429,333 

    Par   
Floating Rate Loan Interests    (000)  Value 
Household Durables — 3.1%       
American Residential Services LLC, Term Loan (Second     
 Lien), 12.00%, 4/17/15 (d)  USD  2,040  $ 1,779,743 
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    1,372  1,353,659 
Simmons Bedding Co., Tranche D Term Loan, 10.50%,     
 12/19/11    3,166  3,076,263 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14  1,184  1,098,083 
      7,307,748 
IT Services — 4.6%       
Audio Visual Services Group, Inc.:       
     Loan (Second Lien), 7.10%, 2/28/14 (c)    1,040  83,184 
     Tranche B Term Loan (First Lien), 2.85%, 2/28/14  1,000  620,000 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    1,977  1,692,520 
First Data Corp. Initial:       
     Tranche B-1 Term Loan, 3.01% – 3.02%, 9/24/14  790  658,169 
     Tranche B-2 Term Loan, 3.01% – 3.02%, 9/24/14  4,629  3,852,089 
     Tranche B-3 Term Loan, 3.01% – 3.02%, 9/24/14  341  283,935 
RedPrairie Corp.:       
     Loan (Second Lien), 6.97%, 1/20/13    300  214,500 
     Term Loan B, 3.44% – 5.25%, 7/20/12    562  485,920 
SunGard Data Systems Inc.:       
     (Solar Capital Corp.) Additional Term Loan B, 6.75%,     
     2/28/14    900  894,696 
     Term Loan B, 3.95% – 4.09%, 2/28/16    2,261  2,182,782 
      10,967,795 
Independent Power Producers & Energy Traders — 1.7%     
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    2,529  1,921,710 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    978  742,929 
     Initial Tranche B-3 Term Loan, 3.78% – 3.79%,       
     10/10/14    1,945  1,472,063 
      4,136,702 
Industrial Conglomerates — 0.6%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    1,519  1,294,833 
Insurance — 0.2%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    491  451,950 
Internet & Catalog Retail — 0.3%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14  708  701,016 
Leisure Equipment & Products — 1.6%       
24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,     
 2.77% – 3.08%, 6/08/12    3,870  3,366,900 
Fender Musical Instruments Corp.:       
     Delayed Draw Loan, 2.54%, 6/09/14    165  132,220 
     Initial Loan, 2.85%, 6/07/14    327  261,770 
      3,760,890 
Life Sciences Tools & Services — 1.1%       
Life Technologies Corp., Term B Facility, 5.25%, 11/20/15  2,529  2,554,120 
Machinery — 3.0%       
NACCO Materials Handling Group, Inc., Loan, 2.26% – 3.41%,     
 3/21/13    1,455  989,400 
Navistar Financial Corp. Tranche A Term loan, 2.31%,       
 3/27/10    1,492  1,447,461 
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.36% – 3.51%,     
     1/19/12    1,067  992,000 
     Term Advance, 3.51%, 1/19/12    2,933  2,728,000 
Oshkosh Truck Corp., Term B Loan, 6.60% – 6.64%,       
 12/06/13    1,032  1,026,883 
      7,183,744 

See Notes to Financial Statements.

26 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)  Value 
Media — 23.8%       
Affinion Group Holdings, Inc., Loan, 8.27%,       
 3/01/10 (d)  USD  2,095  $ 1,833,388 
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,       
 10/12/13    1,590  1,546,900 
Bresnan Communications, LLC, Additional Term Loan B       
 (First Lien), 2.51% – 2.61%, 6/30/13    946  906,626 
Catalina Marketing Corp., Initial Term Loan, 3.03%,       
 10/01/14    1,523  1,431,695 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    4,200  4,032,000 
Cequel Communications, LLC:       
     Term Loan, 2.27% – 4.25%, 11/05/13    2,110  1,993,002 
     Tranche A Term Loan (Second Lien), 4.79%, 5/05/14  2,000  1,802,500 
Charter Communications, Term Loan B1, 7.94%, 3/25/14  3,465  3,463,267 
HMH Publishing Co., Ltd. (fka Education Media):       
     Mezzanine, 17.50%, 11/14/14 (d)    10,180  1,527,027 
     Tranche A Term Loan, 5.26%, 6/12/14    2,633  2,037,464 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    1,478  623,013 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.76%, 6/30/14    980  800,538 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    1,825  1,741,572 
Intelsat Subsidiary Holding Co., Ltd., Tranche B Term Loan,     
 2.78%, 7/13/13    1,896  1,808,521 
Knology, Inc., Term Loan, 2.51%, 6/30/12    724  687,989 
Lamar Advertising Co.:       
     Term Loan Incremental, 5.50%, 9/28/12    207  204,055 
     Term Loan Incremental, 5.50%, 9/28/13    1,233  1,214,611 
     Term Loan E, 5.50%, 9/30/12    494  489,430 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.53%, 3/06/15  EUR  337  272,803 
     Facility C1, 3.78%, 3/04/16    337  272,803 
MCC Iowa LLC (Mediacom Broadband Group), Tranche A       
 Term Loan, 1.76%, 3/31/10  USD  544  535,594 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan (PIK facility), 8.31%, 3/01/13 (d)    1,236  469,840 
Mediacom Broadband (Term Loan E), 6.50%, 11/30/15    2,868  2,871,343 
Mediannuaire Holding (Pages Jaunes), Term Loan D,       
 4.77%, 4/08/16  EUR  500  188,758 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,       
 4/09/12  USD  3,297  1,833,743 
Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,       
 12/18/12    317  221,900 
NTL Cable Plc, Second Lien, 3.62% – 4.19%,       
 7/17/13  GBP  845  1,210,543 
Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13  USD  1,000  1,017,500 
NextMedia Operating, Inc.:       
     Delay Draw Term Loan, 8.25%, 11/15/12    200  129,869 
     Initial Term Loan (First Lien), 8.25%, 11/15/12    266  173,060 
     Term Loan (Second Lien), 11.25%, 11/15/13    1,772  212,674 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    1,809  1,684,193 
     Class B Dollar Term Loan, 4.03%, 5/01/16    3,778  3,541,100 
Penton Media, Inc., Loan (Second Lien), 5.49%, 2/01/14  1,000  210,000 
Sunshine Acquisition Ltd. (aka HIT Entertainment), Term       
 Facility, 2.73%, 6/01/12    1,757  1,460,534 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    2,739  2,755,786 
UPC Financing Partnership, Facility U,4.54%, 12/31/17  EUR  5,000  6,540,844 
Virgin Media NTL, Term Loan, 4.40%, 6/03/12  GBP  1,000  1,513,178 
World Color Press Inc. and World Color (USA) Corp. (fka       
 Quebecor World Inc.), Term Loan, 9.00%, 6/30/12  USD  1,300  1,290,250 
      56,549,913 

    Par   
Floating Rate Loan Interests    (000)  Value 
Multi-Utilities — 0.9%       
Energy Transfer Equity, LP, Term Loan, 2.21%, 11/01/12  USD  1,000  $ 968,571 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.13%, 11/01/13    664  611,659 
     Second Lien Term Loan, 5.13%, 5/01/14    500  386,250 
     Synthetic Letter of Credit, 0.48%, 11/01/13    86  78,810 
      2,045,290 
Multiline Retail — 0.8%       
Dollar General Corp., Tranche B-2 Term Loan, 3.01%,       
 7/07/14    1,975  1,897,920 
Oil, Gas & Consumable Fuels — 1.8%       
Big West Oil, LLC (a)(f):       
     Delayed Advance Loan, 4.50%, 5/15/14    577  530,935 
     Initial Advance Loan, 4.50%, 5/15/14    588  541,363 
Coffeyville Resources, LLC:       
     Funded Letter of Credit, 6.50%, 12/28/10    194  190,216 
     Tranche D Term Loan, 8.50%, 12/30/13    1,559  1,523,964 
Vulcan Energy Corp. (fka Plains Resources Inc.), Term B3       
 Loan, 5.50%, 8/12/11    1,500  1,479,375 
      4,265,853 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,       
 12/20/12    4,297  4,151,381 
NewPage Corp., Term Loan, 4.06%, 12/22/14    1,619  1,499,075 
Verso Paper Finance Holdings LLC, Loan, 6.73%,       
 2/01/13 (d)    1,983  396,576 
      6,047,032 
Pharmaceuticals — 0.9%       
Catalent Pharma Solutions, Inc. (fka Cardinal Health       
409, Inc.), Euro Term Loan, 2.74%, 4/15/14  EUR  980  1,173,123 
Warner Chilcott Co., Inc.:       
     Tranche B Acquisition Date Term Loan,       
     2.26%, 1/18/12  USD  738  733,608 
     Tranche C Acquisition Date Term Loan,       
     2.26%, 1/18/12    259  257,283 
      2,164,014 
Real Estate Management & Development — 1.0%       
Mattamy Funding Partnership, Loan, 2.63%, 4/11/13    968  774,000 
Realogy Corp., Initial Term B Loan, 3.28%, 10/10/13    1,960  1,493,800 
      2,267,800 
Specialty Retail — 0.4%       
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,     
 10/20/13    1,000  938,333 
Wireless Telecommunication Services — 0.9%       
Digicel International Finance Ltd., Tranche A, 3.13%,       
 3/01/12    1,250  1,187,500 
Ntelos Inc., Term Loan B Advance, 5.75%, 7/31/15    1,000  997,500 
      2,185,000 
Total Floating Rate Loan Interests — 87.3%      206,963,770 
  Beneficial   
  Interest   
Other Interests (g)    (000)   
Diversified Financial Services — 0.1%       
J.G. Wentworth LLC Preferred Equity Interests  USD  —(h)  262,849 
Total Other Interests — 0.1%      262,849 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 27


Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Preferred Stocks  Shares  Value 
Capital Markets — 0.0%     
Marsico Parent Superholdco, LLC, 16.75% (b)  78  $ 19,890 
Total Preferred Stocks — 0.0%    19,890 
Total Long-Term Investments     
(Cost — $330,781,619) — 117.0%    277,574,444 
Short-Term Securities     
BlackRock Liquidity Funds, TempFund, 0.22% (i)(j)  2,018,379  2,018,379 
Total Short-Term Securities     
(Cost — $2,018,379) — 0.9%    2,018,379 
Options Purchased  Contracts   
Over-the-Counter Call Options     
Marsico Parent Superholdco LLC, expiring December 2019   
 at USD 942.86, Broker Goldman Sachs & Co.  20  20,000 
Total Options Purchased (Cost — $19,556) — 0.0%    20,000 
Total Investments (Cost — $332,819,554*) — 117.9%  279,612,823 
Liabilities in Excess of Other Assets — (17.9)%    (42,453,259) 
Net Assets — 100.0%    $237,159,564 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows: 
       Aggregate cost    $333,081,083 
       Gross unrealized appreciation    $ 6,045,238 
       Gross unrealized depreciation    (59,513,498) 
       Net unrealized depreciation    $ (53,468,260) 
(a) Non-income producing security.     
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
       These securities may be resold in transactions exempt from registration to qualified 
       institutional investors.     
 (c) Variable rate security. Rate shown is as of report date.   
(d) Represents a payment-in-kind security which may pay interest/dividends in addi- 
       tional par/shares.     
 (e) Convertible security.     
 (f) Issuer filed for bankruptcy and/or is in default of interest payments.   
(g) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
       zation entities and are non-income producing.     
(h) Amount is less than $1,000.     
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
  Net   
       Affiliate  Activity  Income 
       BlackRock Liquidity Funds, TempFund  $ 2,018,379  $ 5,993 
       BlackRock Liquidity Series, LLC     
Cash Sweep Series  $(1,634,669)  $26,105 
 (j) Represents the current yield as of report date.     
 For Fund compliance purposes, the Fund’s industry classifications refer to any one 
       or more of the industry sub-classifications used by one or more widely recognized 
       market indexes or ratings group indexes, and/or as defined by Fund management. 
       This definition may not apply for purposes of this report which may combine industry 
       sub-classifications for reporting ease.     

  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
                  Unrealized 
  Currency    Currency      Settlement Appreciation 
  Purchased    Sold  Counterparty  Date (Depreciation) 
  USD 439,329 EUR  315,000  Citibank NA   9/15/09 $  (12,267) 
  USD14,031,553 EUR 10,059,000  Citibank NA   9/16/09  (389,413) 
              Royal Bank     
  USD 703,165 EUR  494,000  of Scotland Plc   9/16/09  (5,053) 
  USD 290,090 CAD  315,000 Barclays Bank Plc 10/28/09  2,327 
  USD 6,118,751 GBP 3,743,500  Citibank NA  10/28/09  25,014 
  Total            $ (379,392) 
  Credit default swaps on single-name issues — buy protection outstanding as of 
  August 31, 2009 were as follows:         
          Pay         Notional   
          Fixed        Amount Unrealized 
  Issuer    Rate  Counterparty  Expiration  (000) Depreciation 
  First Data    JPMorgan Chase       
   Corp.    5.00%  Bank, NA  12/20/13  USD 3,000 $  (230,284) 
  Host Hotels &    Goldman Sachs       
   Resorts LP  5.00%  Bank USA  3/20/14  USD 2,500  (347,933) 
  Masco Corp.    JPMorgan Chase       
          5.30%  Bank, NA  3/20/14  USD 1,000  (110,160) 
  Mohawk      JPMorgan Chase       
   Industries,  4.45%  Bank, NA  3/20/14  USD 1,000  (99,231) 
   Inc.               
  Total            $ (787,608) 
  Credit default swaps on single-name issues — sold protection outstanding as of 
  August 31, 2009 were as follows:         
        Receive         Notional   
          Fixed  Counter-    Credit  Amount Unrealized 
  Issuer    Rate  party Expiration Ratings1 (000)2 Depreciation 
  Ford Motor             
   Co.    3.80%   UBS AG 3/20/10  CCC USD 10,000 $  (321,270) 
   1    Using Standard & Poor’s rating of the issuer.     
   2    The maximum potential amount the Fund may pay should a negative credit 
      event take place as defined under the terms of the agreement. See Note 2 of 
      the Notes to Financial Statements.         
  Currency Abbreviations:           
  CAD    Canadian Dollar         
  EUR    Euro             
  GBP    British Pound           
  USD    US Dollar           
  Effective September 1, 2008, Financial Accounting Standards Board Statement of 
  Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). 
  FAS 157 clarifies the definition of fair value, establishes a framework for measuring 
  fair values and requires additional disclosures about the use of fair value measure- 
  ments. Various inputs are used in determining the fair value of investments, which 
  are as follows:             
  Level 1 — price quotations in active markets/exchanges for identical securities 
  Level 2 — other observable inputs (including, but not limited to: quoted prices for 
    similar assets or liabilities in markets that are active, quoted prices for identical 
    or similar assets or liabilities in markets that are not active, inputs other than 
    quoted prices that are observable for the assets or liabilities (such as interest 
    rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks 
    and default rates) or other market-corroborated inputs)   
  Level 3 — unobservable inputs based on the best information available in the 
    circumstances, to the extent observable inputs are not available (including the 
    Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about 
  the Fund’s policy regarding valuation of investments and other significant accounting 
  policies, please refer to Note 1 of the Notes to Financial Statements.   

See Notes to Financial Statements.

28 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (concluded) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

The following table summarizes the inputs used as of August 31, 2009 in determin-  Valuation        Other Financial 
ing the fair valuation of the Fund’s investments:    Inputs        Instruments1 
Valuation  Investments in          Assets  Liabilities 
Inputs  Securities  Level 1           
  Assets  Level 2    $ 47,341  $ (1,515,611) 
    Level 3          (49,905) 
Level 1                 
 Long-Term Investments:    Total    $ 47,341  $ (1,565,516) 
   Common Stocks  $ 2,413,145               
    1  Other financial instruments are swaps, options purchased, foreign currency 
 Short-Term Securities  2,018,379               
      exchange contracts and unfunded loan commitments. Swaps, foreign currency 
Total Level 1  4,431,524    exchange contracts and unfunded loan commitments are valued at the unreal- 
Level 2      ized appreciation/depreciation on the instrument and options purchased are 
 Long-Term Investments:      shown at market value.         
   Common Stocks  220,043               
   Corporate Bonds  64,866,572               
   Floating Rate Loan Interests  152,389,930               
   Preferred Stocks  19,890               
Total Level 2  217,496,435               
Level 3                 
 Long-Term Investments:                 
   Common Stocks  5,143               
   Corporate Bonds  2,823,032               
   Floating Rate Loan Interests  54,573,840               
   Other Interests  262,849               
Total Level 3  57,664,864               
Total  $279,592,823               
The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
        Investments in Securities     
      Common  Corporate  Floating Rate  Other   
      Stocks  Bonds  Loan Interests  Interests  Total 
Balance, as of August 31, 2008    $ 5,036    $27,972,884      $27,977,920 
Accrued discounts/premiums                 
Realized gain (loss)          (6,318,545)      (6,318,545) 
Change in unrealized appreciation (depreciation)2        $ (140,889)  (2,598,443)      (2,739,332) 
Net purchases (sales)          (17,770,999)      (17,770,999) 
Net transfers in/out of Level 3      107  2,963,921  53,288,943  $ 262,849  56,515,820 
Balance, as of August 31, 2009    $ 5,143  $ 2,823,032  $54,573,840  $ 262,849  $57,664,864 
 2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.           
The following is a reconciliation of other financial instruments for unobservable               
inputs (Level 3) used in determining fair value:                 
  Other Financial               
  Instruments3               
  Liabilities               
Balance, as of August 31, 2008                 
Accrued discounts/premiums                 
Realized gain (loss)                 
Change in unrealized appreciation (depreciation)                 
Net purchases (sales)                 
Net transfers in/out of Level 3  $ (49,905)               
Balance as of August 31, 2009  $ (49,905)               
 3 Other financial instruments are unfunded loan commitments.                 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 29


Schedule of Investments August 31, 2009 BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Asset-Backed Securities    (000)  Value 
Ford Credit Auto Owner Trust Series 2009-A Class A3B,       
2.77%, 5/15/13 (a)  USD  9,135  $ 9,373,195 
Interest Only — 0.5%       
Sterling Bank Trust Series 2004-2 Class Note, 2.08%,       
 3/30/30    18,549  1,431,764 
Sterling Coofs Trust Series 1, 2.36%, 4/15/29    14,819  1,236,448 
      2,668,212 
Total Asset-Backed Securities — 2.2%      12,041,407 
Common Stocks    Shares   
Commercial Services & Supplies — 0.0%       
Sirva (b)    1,109  5,545 
Construction & Engineering — 0.0%       
USI United Subcontractors (b)    6,111  79,444 
Metals & Mining — 0.0%       
Euramax International (b)    234  2,512 
Total Common Stocks — 0.0%      87,501 
    Par   
Corporate Bonds    (000)   
Air Freight & Logistics — 0.1%       
Park-Ohio Industries, Inc., 8.38%, 11/15/14  USD  905  571,281 
Airlines — 0.1%       
American Airlines Pass Through Trust Series 1999-1,       
 7.32%, 4/15/11    520  512,200 
Auto Components — 0.1%       
Lear Corp., 8.75%, 12/01/16 (a)(b)(c)    525  283,500 
Automobiles — 0.1%       
Ford Capital BV, 9.50%, 6/01/10    500  495,000 
Building Products — 0.1%       
CPG International I, Inc., 10.50%, 7/01/13    750  536,250 
Capital Markets — 0.4%       
E*Trade Financial Corp. (d):       
     3.99%, 8/31/19 (e)    249  425,479 
     12.50%, 11/30/17 (f)    78  78,975 
Marsico Parent Co., LLC, 10.62%, 1/15/16    2,651  1,113,420 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (d)(f)    1,105  265,135 
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (d)(f)  759  197,440 
      2,080,449 
Chemicals — 0.9%       
American Pacific Corp., 9.00%, 2/01/15    1,100  992,750 
Ames True Temper, Inc., 4.51%, 1/15/12 (a)    2,085  1,834,800 
Innophos, Inc., 8.88%, 8/15/14    2,225  2,158,250 
Terra Capital, Inc., Series B, 7.00%, 2/01/17    15  14,137 
      4,999,937 
Commercial Services & Supplies — 0.8%       
DI Finance, Series B, 9.50%, 2/15/13    2,326  2,357,983 
Waste Services, Inc., 9.50%, 4/15/14    2,065  2,044,350 
      4,402,333 
Consumer Finance — 0.8%       
Ford Motor Credit Co. LLC:       
     7.38%, 2/01/11    2,800  2,706,791 
     3.26%, 1/13/12 (a)    565  470,363 
     7.80%, 6/01/12    1,665  1,540,202 
      4,717,356 

    Par   
Corporate Bonds    (000)  Value 
Containers & Packaging — 0.9%       
Berry Plastics Holding Corp.:       
     4.50%, 9/15/14 (a)  USD  510  $ 367,200 
     8.88%, 9/15/14    465  409,200 
Crown Americas LLC, 7.75%, 11/15/15    885  876,150 
Impress Holdings BV, 3.63%, 9/15/13 (a)(d)    1,370  1,251,837 
Pregis Corp., 12.38%, 10/15/13    2,020  1,818,000 
      4,722,387 
Diversified Financial Services — 0.4%       
GMAC LLC, 6.88%, 8/28/12 (d)    1,731  1,505,970 
Structured Asset Repackaged Trust, 1.00%, 1/21/10    1,082  1,049,539 
      2,555,509 
Diversified Telecommunication Services — 3.8%       
Cincinnati Bell, Inc., 7.25%, 7/15/13    1,330  1,290,100 
Deutsche Telekom International Finance BV, 8.50%,       
 6/15/10    5,000  5,258,820 
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (d)  3,850  3,907,750 
PAETEC Holding Corp., 8.88%, 6/30/17 (d)    1,000  952,500 
Qwest Communications International, Inc.:       
     Series B, 7.50%, 2/15/14    2,985  2,880,525 
     7.50%, 2/15/14    610  588,650 
Qwest Corp., 3.88%, 6/15/13 (a)    3,000  2,775,000 
Wind Acquisition Finance SA, 10.75%, 12/01/15 (d)  900  967,500 
Windstream Corp.:       
     8.13%, 8/01/13    1,480  1,480,000 
     8.63%, 8/01/16    990  993,712 
      21,094,557 
Electric Utilities — 0.0%       
Elwood Energy LLC, 8.16%, 7/05/26    138  120,438 
Electronic Equipment, Instruments & Components — 0.1%     
Sanmina-SCI Corp., 8.13%, 3/01/16    600  517,500 
Energy Equipment & Services — 0.1%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15    255  242,250 
     7.75%, 5/15/17    420  396,900 
North American Energy Partners, Inc., 8.75%, 12/01/11  140  128,800 
      767,950 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15 (d)    455  459,550 
Food Products — 0.3%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (d)    1,810  1,846,200 
Health Care Equipment & Supplies — 0.8%       
Biomet, Inc., 10.00%, 10/15/17    500  525,000 
DJO Finance LLC, 10.88%, 11/15/14    3,830  3,676,800 
      4,201,800 
Health Care Providers & Services — 0.8%       
Tenet Healthcare Corp. (d):       
     9.00%, 5/01/15    812  832,300 
     10.00%, 5/01/18    332  357,730 
Viant Holdings, Inc., 10.13%, 7/15/17 (d)    2,948  2,771,120 
      3,961,150 
Hotels, Restaurants & Leisure — 1.7%       
American Real Estate Partners LP:       
     8.13%, 6/01/12    5,860  5,772,100 
     7.13%, 2/15/13    1,480  1,406,000 
Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(c)(d)  1,344  288,960 
Harrah’s Operating Co., Inc. (d):       
     10.00%, 12/15/15    720  514,800 
     10.00%, 12/15/18    1,881  1,316,700 
Tropicana Entertainment LLC Series WI, 9.63%,       
 12/15/14 (b)(c)    375  234 
      9,298,794 

See Notes to Financial Statements.

30 ANNUAL REPORT AUGUST 31, 2009


Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Household Durables — 0.0%     
Berkline/Benchcraft, LLC, 4.50%, 11/03/12 (d)(e)(f) USD  200  $ — 
IT Services — 0.4%     
iPayment, Inc., 9.75%, 5/15/14  950  612,750 
iPayment Investors LP, 12.75%, 7/15/14 (d)(f)  4,759  1,189,702 
SunGard Data Systems, Inc., 4.88%, 1/15/14  215  193,500 
    1,995,952 
Independent Power Producers & Energy Traders — 0.8%     
The AES Corp., 8.75%, 5/15/13 (d)  2,803  2,845,045 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (d)  1,250  1,243,750 
NRG Energy, Inc.:     
     7.25%, 2/01/14  210  204,225 
     7.38%, 2/01/16  475  454,219 
    4,747,239 
Industrial Conglomerates — 0.9%     
Sequa Corp. (d):     
     11.75%, 12/01/15  3,210  2,022,300 
     13.50%, 12/01/15 (f)  5,678  2,966,940 
    4,989,240 
Machinery — 0.7%     
AGY Holding Corp., 11.00%, 11/15/14  1,700  1,343,000 
Accuride Corp., 8.50%, 2/01/15 (b)(c)  850  170,000 
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (d)  3,125  2,343,750 
Synventive Molding Solutions, Sub-Series A, 14.00%, 1/14/11  720  287,888 
    4,144,638 
Marine — 0.1%     
Navios Maritime Holdings, Inc., 9.50%, 12/15/14  676  591,500 
Media — 3.7%     
Affinion Group, Inc., 10.13%, 10/15/13  2,825  2,807,344 
CMP Susquehanna Corp., 4.75%, 5/15/14 (d)  194  3,880 
Charter Communications Holdings II, LLC (b)(c):     
     10.25%, 9/15/10  1,155  1,283,494 
     Series B, 10.25%, 9/15/10  765  850,106 
Charter Communications, Inc., 6.50%, 10/01/27 (b)(c)(e)  1,280  550,400 
EchoStar DBS Corp.,:     
     7.00%, 10/01/13  200  196,000 
     7.13%, 2/01/16  200  192,000 
Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17  1,575  598,500 
Network Communications, Inc., 10.75%, 12/01/13  1,520  307,800 
Nielsen Finance LLC, 10.00%, 8/01/14  3,695  3,491,775 
ProtoStar I Ltd., 18.00%, 10/15/12 (b)(c)(d)(e)  3,454  1,381,644 
Rainbow National Services LLC (d):     
     10.38%, 9/01/14  3,134  3,275,030 
     8.75%, 9/01/12  925  934,250 
TL Acquisitions, Inc., 10.50%, 1/15/15 (d)  4,965  4,518,150 
    20,390,373 
Metals & Mining — 0.2%     
Freeport-McMoRan Copper & Gold, Inc., 8.38%, 4/01/17  1,225  1,277,063 
Oil, Gas & Consumable Fuels — 1.5%     
Berry Petroleum Co., 8.25%, 11/01/16  550  489,500 
Chesapeake Energy Corp., 6.38%, 6/15/15  650  592,313 
EXCO Resources, Inc., 7.25%, 1/15/11  495  485,100 
Encore Acquisition Co., 6.00%, 7/15/15  250  215,000 
OPTI Canada, Inc., 8.25%, 12/15/14  1,805  1,173,250 
Overseas Shipholding Group, Inc., 8.75%, 12/01/13  1,190  1,148,350 
Sabine Pass LNG LP, 7.50%, 11/30/16  1,515  1,227,150 
SandRidge Energy, Inc.:     
     4.22%, 4/01/14 (a)  1,500  1,245,552 
     8.63%, 4/01/15 (f)  180  169,200 
Whiting Petroleum Corp.:     
     7.25%, 5/01/12  75  74,625 
     7.25%, 5/01/13  1,390  1,376,100 
    8,196,140 

    Par   
Corporate Bonds    (000)  Value 
Paper & Forest Products — 0.2%       
Domtar Corp., 7.88%, 10/15/11  USD  10  $ 10,263 
NewPage Corp.:       
     6.73%, 5/01/12 (a)    1,500  641,250 
     10.00%, 5/01/12    635  344,487 
      996,000 
Professional Services — 0.1%       
FTI Consulting, Inc., 7.75%, 10/01/16    350  341,250 
Real Estate Investment Trusts (REITs) — 0.2%       
Rouse Co. LP, 5.38%, 11/26/13 (b)(c)    1,640  1,238,200 
Software — 0.0%       
BMS Holdings, Inc., 8.35%, 2/15/12 (a)(d)(f)    568  9,122 
Specialty Retail — 1.9%       
General Nutrition Centers, Inc.:       
     6.40%, 3/15/14 (a)    2,250  1,980,000 
     10.75%, 3/15/15    1,700  1,606,500 
Group 1 Automotive, Inc., 8.25%, 8/15/13    5,000  4,512,500 
Lazydays RV Center, Inc., 11.75%, 5/15/12 (b)(c)    1,454  14,540 
Sonic Automotive, Inc., Series B, 8.63%, 8/15/13    3,135  2,649,075 
      10,762,615 
Textiles, Apparel & Luxury Goods — 0.7%       
Levi Strauss & Co., 8.63%, 4/01/13    2,400  3,285,833 
Quiksilver, Inc., 6.88%, 4/15/15    575  365,125 
      3,650,958 
Tobacco — 0.2%       
Reynolds American, Inc., 7.63%, 6/01/16    1,000  1,055,033 
Wireless Telecommunication Services — 1.1%       
Cricket Communications, Inc.:       
     7.75%, 5/15/16 (d)    2,250  2,182,500 
     9.38%, 11/01/14    270  254,475 
Digicel Group Ltd. (d):       
     8.88%, 1/15/15    1,120  999,600 
     9.13%, 1/15/15 (e)    2,467  2,174,044 
MetroPCS Wireless, Inc., 9.25%, 11/01/14    270  264,937 
      5,875,556 
Total Corporate Bonds — 25.1%      138,405,020 
Floating Rate Loan Interests       
Aerospace & Defense — 0.7%       
Avio SpA:       
     Facility B2, 2.39%, 12/15/14    995  836,162 
     Facility C2, 3.01%, 12/14/15    1,000  840,000 
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.28%, 3/26/14    156  115,998 
     Term Loan, 2.26% – 2.60%, 3/26/14    2,637  1,965,395 
IAP Worldwide Services, Inc. Term Loan (First-Lien),       
7.25%, 12/30/12    150  108,249 
      3,865,804 
Airlines — 0.2%       
US Airways Group, Inc., Loan, 2.76%, 3/21/14    2,190  1,179,315 
Auto Components — 1.5%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    4,004  3,418,134 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,876  1,436,349 
Dayco Products LLC – (Mark IV Industries, Inc.),       
 Replacement Term B Loan, 8.75%, 6/21/11 (b)(c)    854  352,803 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 31


Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Auto Components (concluded)       
Delphi Corp. (b)(c):       
     Initial Tranche C Loan Debtor in Possession,       
     10.50%, 12/31/09  USD  4,538  $ 2,495,820 
     Subsequent Tranche C Loan Debtor in Possession,       
     9.50%, 12/31/09    462  254,180 
Mark IV Industries:       
     Replacement Term B Loan, 8.50%, 5/01/10    20   
     US Term Loan, Debtor in Possession Loan,       
     8.50%, 5/01/10    101  90,725 
      8,048,011 
Beverages — 0.4%       
Culligan International Co., Loan (Second Lien), 5.28%,       
 4/24/13  EUR  1,500  537,604 
InBev NV/SA, Bridge Loan, 1.95%, 7/15/13  USD  1,500  1,421,250 
Le-Nature’s, Inc., Tranche B Loan, 9.39% – 9.42%,       
 9/30/11 (b)(c)    1,000  195,000 
      2,153,854 
Building Products — 0.9%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14    2,586  2,359,709 
Custom Building Products, Inc., Loan (Second Lien),       
 10.75%, 4/20/12    1,500  1,404,375 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.74%, 12/04/13  EUR  997  1,076,830 
United Subcontractors, First Lien Term Loan, 2.10%,       
 12/27/12  USD  143  121,744 
      4,962,658 
Capital Markets — 0.2%       
Marsico Parent Co., LLC, Term Loan, 4.81%, 12/15/14    462  198,749 
Nuveen Investments, Inc., Term Loan, 3.49% – 3.50%,       
 11/13/14    1,359  1,103,211 
      1,301,960 
Chemicals — 3.6%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14    889  903,747 
Brenntag Holdings Gmbh & Co. KG:       
     Facility 2, 4.27%, 7/17/15    500  413,000 
     Facility 3A (Second Lien), 5.65%, 7/17/15  EUR  115  136,147 
     Facility 3B Second Lien, 5.65%, 7/17/15    385  455,934 
     Facility B6B, 3.60%, 1/20/14    218  297,235 
     Loan B6A, 3.60%, 1/20/14    282  383,929 
Cognis GmbH:       
     Facility A (French) 3.27%, 9/16/13    803  988,926 
     Facility B (French) 3.27%, 9/16/13    197  242,186 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.85%, 5/31/14  USD  449  278,290 
ElectricInvest Holding Co. Ltd. (Viridian Group Plc)       
 Junior Term Facility:       
     5.00%, 12/21/12  EUR  894  819,938 
     5.04%, 12/21/12  GBP  900  937,698 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14  USD  1,237  1,179,629 
Ineos US Finance LLC:       
     Term A4 Facility, 7.00%, 12/14/12    334  267,699 
     Term B2 Facility, 7.50%, 12/16/13    1,631  1,239,581 
     Term C2 Facility, 8.00%, 12/16/14    1,631  1,239,581 
Nalco Co., Term Loan, 6.50%, 5/06/16    2,075  2,103,531 
PQ Corp. (fka Niagara Acquisition, Inc.):