UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:_____811-21566________________________

____BlackRock Global Floating Rate Income Trust____
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE 
19809 
(Address of principal executive offices) 
(Zip code) 

Robert S. Kapito, President
BlackRock Global Floating Rate Income Trust
40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

Registrant's telephone number, including area code: 888-825-2257_____________

Date of fiscal year end:___December 31, 2006__________________________________

Date of reporting period:__ June 30, 2006_________________________________


Item 1. Reports to Stockholders.

FIXED INCOME           LIQUIDITY           EQUITIES           ALTERNATIVES           BLACKROCK SOLUTIONS


BlackRock
Closed-End Funds
Semi-Annual Report

JUNE 30, 2006 (UNAUDITED)


 

BlackRock Global Floating Rate Income Trust (BGT)

BlackRock High Income Shares (HIS)

BlackRock Preferred Opportunity Trust (BPP)


 

 

 

 

 

 

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


TABLE OF CONTENTS 
   
Letter to Shareholders  1 
   
Trusts’ Summaries  2 
   
Financial Statements   
   
     Portfolios of Investments  5 
   
     Statements of Assets and Liabilities  31 
   
     Statements of Operations  32 
   
     Statements of Cash Flows  33 
   
     Statements of Changes in Net Assets  34 
   
Financial Highlights  36 
   
Notes to Financial Statements  39 
   
Board Review of Investment Management Agreements  45 
   
Dividend Reinvestment Plans  49 
   
Additional Information  50 
   
Section 19 Notices  51 

 

 

Privacy Principles of the Trusts

     The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.

     Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third-party administrator).

     The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.

 


LETTER TO SHAREHOLDERS

June 30, 2006

Dear Shareholder:

     We are pleased to report that during the semi-annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts’ unaudited as of and for the six months ended June 30, 2006 and audited financial statements for prior periods as well as a listing of the portfolios’ holdings.

     The portfolio management team continuously monitors the fixed income markets and adjusts the portfolios in order to gain exposure to various issuers and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.

     The following table shows the Trusts’ yields, closing market prices per share and net asset values (“NAV”) per share as of June 30, 2006.

                                                             Trust (Ticker)  Yield1 Market Price  NAV 
BlackRock Global Floating Rate Income Trust (BGT)  7.91 %  $18.96    $19.05   
BlackRock High Income Shares (HIS)  9.32   2.64    2.55   
BlackRock Preferred Opportunity Trust (BPP) 
8.09
 
24.72 
 
23.60 
 

1Yield is based on closing market price. Past performance does not guarantee future results. These yields may increase/decrease due to an increase/decrease in the monthly distribution per share.

     BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to managing fixed income securities. As of June 30, 2006, BlackRock managed $305 billion in fixed income securities, including 20 open-end and 48 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock.

     On behalf of BlackRock, we thank you for your continued confidence and assure you that we remain committed to excellence in managing your assets.

Sincerely,


Laurence D. Fink  Ralph L. Schlosstein 
Chief Executive Officer  President 
BlackRock Advisors, Inc.  BlackRock Advisors, Inc. 

1


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Global Floating Rate Income Trust (BGT)

Trust Information

 
Symbol on New York Stock Exchange:  BGT
Initial Offering Date:  August 30, 2004
Closing Market Price as of 6/30/06:  $18.96  
Net Asset Value as of 6/30/06:  $19.05  
Yield on Closing Market Price as of 6/30/06 ($18.96):1 7.91 % 
Current Monthly Distribution per Share:2 $0.125  
Current Annualized Distribution per Share:2 $1.500  
Leverage as of 6/30/06:3 38 % 

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 is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the Trust’s market price and NAV:

         
  6/30/06  12/31/05  Change High  Low 
Market Price  $18.96  $17.16  10.49 %  $18.97  $17.12 
NAV  $19.05  $19.13  (0.42 )%  $19.38  $19.01 

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond investments:

Portfolio Composition

     
Composition  June 30, 2006 December 31, 2005
Foreign Government Bonds  15 %  20 % 
Consumer Products  11   11  
Media  10   10  
Financial Institutions  10   3  
Energy  9   10  
Basic Materials  9   10  
Telecommunications  6   6  
Health Care  6   6  
Entertainment & Leisure  5   5  
Conglomerates  4   4  
Technology  3   3  
Containers & Packaging  3   2  
Automotive  2   2  
Building & Development  2   2  
Real Estate  2   3  
Industrials  1   1  
Aerospace & Defense  1   1  
Transportation  1    
Ecological Services & Equipment    1  

Corporate Credit Breakdown3

 
 Credit Rating  June 30, 2006 December 31, 2005
 BBB/Baa  16 %  19 % 
 BB/Ba  48   54  
 B  32   22  
 CCC/Caa  4   5  

3 Using the higher of Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch”) rating. Corporate bonds represented approximately 21.5% and 20.5% of net assets on June 30, 2006 and December 31, 2005, respectively.

2


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock High Income Shares (HIS)

Trust Information

   
Symbol on New York Stock Exchange:  HIS
Initial Offering Date:  August 10, 1988
Closing Market Price as of 6/30/06:  $2.64  
Net Asset Value as of 6/30/06:  $2.55  
Yield on Closing Market Price as of 6/30/06 ($2.64):1 9.32 % 
Current Monthly Distribution per Share:2 $0.0205  
Current Annualized Distribution per Share:2 $0.2460  
Leverage as of 6/30/06:3 31 % 

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 August 15, 2006. The Monthly Distribution per Share was decreased to $0.0182. The Yield on Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. The distribution rate is not constant and is subject to further change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

         
  6/30/06  12/31/05  Change High  Low 
Market Price  $2.64  $2.33  13.30 %  $2.74  $2.33 
NAV  $2.55  $2.61  (2.30 )%  $2.66  $2.54 

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition

     
Composition  June 30, 2006 December 31, 2005
Energy  13 %  13 % 
Telecommunications  13   10  
Media  12   13  
Basic Materials  11   11  
Financial Institutions  8   9  
Technology  6   5  
Consumer Products  6   7  
Industrials  6   10  
Containers & Packaging  5   4  
Health Care  4   3  
Aerospace & Defense  4   3  
Entertainment & Leisure  4   4  
Building & Development  3   2  
Automotive  2   3  
Transportation  2   2  
Ecological Services & Equipment  1   1  

Corporate Credit Breakdown3

 
Credit Rating  June 30, 2006 December 31, 2005
BBB/Baa  1 %  1 % 
Ba/BB  25   23  
B/B  62   61  
CCC/Caa  12   14  
Not Rated    1  

3 Using the higher of S&P, Moody’s or Fitch rating. Corporate bonds represented approximately 138.3% and 141.8% of net assets on June 30, 2006 and December 31, 2005, respectively.

3


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Preferred Opportunity Trust (BPP)

Trust Information

   
Symbol on New York Stock Exchange:  BPP
Initial Offering Date:  February 28, 2003
Closing Market Price as of 6/30/06:  $24.72  
Net Asset Value as of 6/30/06:  $23.60  
Yield on Closing Market Price as of 6/30/06 ($24.72):1 8.09 % 
Current Monthly Distribution per Share:2 $0.166667  
Current Annualized Distribution per Share:2 $2.000004  
Leverage as of 6/30/06:3 34 % 

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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

         
  6/30/06  12/31/05  Change  High   Low 
Market Price  $24.72  $24.20  2.15 %  $25.38  $24.20 
NAV  $23.60  $24.43  (3.40 )%  $24.79  $23.43 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

Portfolio Composition

         
Composition  June 30, 2006 December 31, 2005
Financial Institutions  72 %  72 % 
Real Estate  11   12  
Energy  6   6  
Media  3   2  
Automotive  2   1  
Transportation  2    
Basic Materials  1   1  
Consumer Products  1   3  
Technology  1    
Telecommunications  1   1  
Building & Development    1  
Industrials    1  

Credit Breakdown3

         
Credit Rating  June 30, 2006 December 31, 2005
AA/Aa  18 %  13 % 
A  36   39  
BBB/Baa  29   29  
BB/Ba  9   11  
B  6   7  
CCC/Caa    1  
Not Rated  2    

3 Using the higher of S&P, Moody’s or Fitch rating.

4


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Global Floating Rate Income Trust (BGT)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
 
        LONG-TERM INVESTMENTS—164.1%     
        Corporate Bonds—22.0%     
        Aerospace & Defense—0.2%     
B    $    671    DI Finance/DynCorp. Intl., 9.50%, 2/15/13    $     697,840 
        Automotive—0.3%     
        Autonation, Inc.,     
BB+    602      7.00%, 4/15/14    59,400 
BB+    702 ,3    7.045%, 4/15/13    70,700 
BB-    1502 ,3 Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14    149,250 
CCC-    7753   Delco Remy Intl., Inc., 9.068%, 4/15/09    759,500 
B-    250    Lear Corp., 8.11%, 5/15/09    242,500 
CCC+    220    Metaldyne Corp., 10.00%, 11/01/13    212,300 
        Total Automotive    1,493,650 
        Basic Materials—1.9%     
B+    1,0003   Abitibi-Consolidated, Inc., 6.51%, 6/15/11 (Canada)    975,000 
B+    970    AK Steel Corp., 7.75%, 6/15/12    955,450 
B+    2603   Boise Cascade LLC, 6.474%, 10/15/12    258,700 
B+    2,0403 ,4 Bowater, Inc., 7.91%, 3/15/10    2,055,300 
BB+    10    Chemtura Corp., 6.875%, 6/01/16    9,662 
B+    20    Domtar, Inc., 7.125%, 8/15/15 (Canada)    17,400 
B+    70    Donohue Forest Products, 7.625%, 5/15/07 (Canada)    70,700 
B+    750    Hercules, Inc., 6.75%, 10/15/29    708,750 
        Ineos Group Holdings PLC (United Kingdom),     
B2    225       (EUR), 7.875%, 2/07/16    269,080 
B2    4302      8.50%, 2/15/16    405,275 
        Lyondell Chemical Co.,     
BB-    300       11.125%, 7/15/12    326,250 
BB-    300       Ser. A, 9.625%, 5/01/07    306,000 
B-    565    Nalco Co., 8.875%, 11/15/13    567,119 
        NewPage Corp.,     
B3    55       10.00%, 5/01/12    56,925 
B3    1,5003      11.399%, 5/01/12    1,636,875 
B-    50    PQ Corp., 7.50%, 2/15/13    47,125 
        Total Basic Materials    8,665,611 
        Building & Development—0.3%     
B+    1,0003   Ainsworth Lumber Co. Ltd., 6.84%, 10/01/10 (Canada)    960,000 
B2    902   Compression Polymers Corp., 10.50%, 7/01/13    91,350 
B-    195    Goodman Global Holding Co., Inc., 7.875%, 12/15/12    188,663 
        Total Building & Development    1,240,013 
        Consumer Products—1.2%     
B3    45    ALH Finance LLC, 8.50%, 1/15/13    43,369 
CCC+    7003   Ames True Temper, Inc., 9.068%, 1/15/12    687,750 
B-    400    Cenveo Corp., 7.875%, 12/01/13    390,000 
CCC    1,0503   Duane Reade, Inc., 7.91%, 12/15/10    1,023,750 
B-    75    Finlay Fine Jewelry Corp., 8.375%, 6/01/12    65,062 
B    40    Gold Kist, Inc., 10.25%, 3/15/14    41,800 
B-    5052   Knowledge Learning Corp., Inc., 7.75%, 2/01/15    462,075 
B-    400    Lazydays RV Center, Inc., 11.75%, 5/15/12    378,000 
B-    1803   Levi Strauss & Co., 7.73%, 4/01/12    182,700 
B3    302 ,3 Nutro Products, Inc., 9.23%, 10/15/13    30,563 
BB-    802   Quebecor World, Inc., 8.75%, 3/15/16 (Canada)    72,746 
BB    2,0002   Reynolds American, Inc., 7.625%, 6/01/16    1,952,500 
B-    1352   Rite Aid Corp., 6.125%, 12/15/08    131,456 
        Total Consumer Products    5,461,771 
        Containers & Packaging—0.1%     
B-    502   Packaging Dynamics Finance Corp., 10.00%, 5/01/16    50,000 

See Notes to Financial Statements.

5


BlackRock Global Floating Rate Income Trust (BGT) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Containers & Packaging—(cont’d)     
B2    $ 250    Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11    $      257,188 
        Total Containers & Packaging    307,188 
        Ecological Services & Equipment—0.1%     
BB-    625    Allied Waste NA, Inc., 5.75%, 2/15/11    581,250 
        Energy—7.8%     
BB-    7502   AES Corp., 9.00%, 5/15/15    806,250 
B+    130    ANR Pipeline Co., 9.625%, 11/01/21    150,475 
B    352   Chaparral Energy, Inc., 8.50%, 12/01/15    34,738 
BB-    70    Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)    68,425 
B+    375    El Paso Production Holding Co., 7.75%, 6/01/13    378,750 
B1    505    Foundation Pennsylvania Coal Co., 7.25%, 8/01/14    493,006 
BB+    14,430    Gazprom OAO, 9.625%, 3/01/13 (Germany)    16,492,047 
BB    40    Grant Prideco, Inc., 6.125%, 8/15/15    36,800 
B-    730    KCS Energy, Inc., 7.125%, 4/01/12    688,025 
        Pemex Project Funding Master Trust,     
BBB    8004      9.375%, 12/02/08    858,800 
Baa1    12,7003      Ser. 15, 3.87%, 10/15/09    13,144,500 
        Reliant Energy, Inc.,     
B    180       6.75%, 12/15/14    166,050 
B    750       9.25%, 7/15/10    750,000 
B    300    Whiting Petroleum Corp., 7.25%, 5/01/13    288,000 
BB-    590    Williams Cos., Inc., 8.75%, 3/15/32    646,050 
        Total Energy    35,001,916 
        Entertainment & Leisure—0.1%     
B3    1552   Greektown Holdings LLC, 10.75%, 12/01/13    162,944 
B    602   Pokagon Gaming Authority, 10.375%, 6/15/14    62,025 
B    25    Poster Financial Group, Inc., 8.75%, 12/01/11    25,937 
B+    402   San Pasqual Casino, 8.00%, 9/15/13    40,100 
B+    20    Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14    19,025 
        Total Entertainment & Leisure    310,031 
        Financial Institutions—4.0%     
B+    92    AES Ironwood LLC, 8.857%, 11/30/25    99,936 
Ba3    2,000    Alrosa Finance Ltd., 8.125%, 5/06/08 (Luxembourg)    2,047,500 
BB    140    American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13    134,400 
BB    630    Crum & Forster Holdings Corp., 10.375%, 6/15/13    641,025 
B+    60    Ford Motor Credit Co., 7.25%, 10/25/11    53,222 
        General Motors Acceptance Corp.,     
BB    3,000 3      3.56%, 1/16/07    2,992,450 
BB    200       6.875%, 8/28/12    190,368 
BB+    5,455    Kazkommerts Intl. BV, 8.50%, 4/16/13 (Netherlands)    5,594,648 
BB+    3,0002   Kazkommertsbank Intl. BV, 8.50%, 4/16/13 (Netherlands)    3,067,500 
BBB    253   Marsh & McLennan Cos., Inc., 2.193%, 7/13/07    24,978 
B+    7502   Rainbow National Services LLC, 8.75%, 9/01/12    787,500 
A2    2,000    Sberbank, 6.875%, 10/24/06 (Russia)    2,006,600 
B-    3003   Universal City Florida Holding Co. I/II, 7.96%, 5/01/10    307,500 
        Total Financial Institutions    17,947,627 
        Health Care—0.7%     
B    2802   Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)    269,500 
B3    2,1152 ,3 Healthsouth Corp., 11.418%, 6/15/14    2,083,275 
B-    25    Select Medical Corp., 7.625%, 2/01/15    21,625 
B    325    Tenet Healthcare Corp., 6.875%, 11/15/31    259,188 
B-    630    Universal Hospital Services, Inc., 10.125%, 11/01/11    653,625 
        Total Health Care    3,287,213 
        Industrials—0.4%     
B-    80    NationsRent Cos., Inc., 9.50%, 5/01/15    85,000 
CCC+    325    Park-Ohio Industries, Inc., 8.375%, 11/15/14    286,000 
B3    2102   Sunstate Equipment Co. LLC, 10.50%, 4/01/13    216,300 
CCC+    445    Trimas Corp., 9.875%, 6/15/12    404,950 

See Notes to Financial Statements.

6


BlackRock Global Floating Rate Income Trust (BGT) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Industrials—(cont’d)     
B       $ 825    United Rentals NA, Inc., 7.00%, 2/15/14    $ 754,875 
        Total Industrials    1,747,125 
        Media—0.6%     
B-             502   Affinion Group, Inc., 10.125%, 10/15/13    50,125 
B+           1003   Cablevision Systems Corp., 8.716%, 4/01/09    106,000 
        Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,     
CCC-           680       10.25%, 9/15/10    681,700 
CCC-             452      10.25%, 9/15/10    45,000 
        Echostar DBS Corp.,     
BB-           300 2      7.125%, 2/01/16    286,500 
BB-           750       6.375%, 10/01/11    717,187 
B2           100    Emmis Operating Co., 6.875%, 5/15/12    98,750 
B             80    Medianews Group, Inc., 6.875%, 10/01/13    73,300 
B2             802   Network Communications, Inc., 10.75%, 12/01/13    78,800 
B3             70    Nexstar Finance, Inc., 7.00%, 1/15/14    63,700 
B2           3502 ,3 Paxson Communications Corp., 8.318%, 1/15/12    352,625 
B           2502   R.H. Donnelley, Inc., 8.875%, 1/15/16    245,938 
CCC+           1002   Unity Media GmbH, 10.375%, 2/15/15 (Germany)    99,000 
        Total Media    2,898,625 
        Real Estate—1.3%     
BB+       6,3504   Rouse Co., 5.375%, 11/26/13    5,717,047 
        Technology—0.7%     
BBB-       1,5003   Freescale Semiconductor, Inc., 5.891%, 7/15/09    1,530,000 
B+           9653   MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co., 6.66%, 12/15/11 (Luxembourg)    916,750 
B2             502   Sensata Technologies BV, 8.00%, 5/01/14 (Netherlands)    48,625 
B-           2502 ,3 Sungard Data Systems, Inc., 4.50%, 8/15/13    263,750 
B           140    Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12    142,450 
        Total Technology    2,901,575 
        Telecommunications—2.2%     
B1           810    Cincinnati Bell, Inc., 7.25%, 7/15/13    795,825 
B1           350    Dobson Cellular Systems, Inc., 8.375%, 11/01/11    359,625 
B3           1153   Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13    117,013 
        Intelsat Ltd. (Bermuda),     
B             75       5.25%, 11/01/08    70,500 
B+             50       8.25%, 1/15/13    49,625 
B+           200       8.625%, 1/15/15    201,500 
B+           4853      9.609%, 1/15/12    491,062 
B+       1,500    Nordic Telephone Co. Holding ApS (EUR), 8.352%, 5/03/16 (Denmark)    1,991,194 
B       2,3503   Qwest Communications Intl., Inc., 6.768%, 2/15/09    2,397,000 
BB+       2,5003   Qwest Corp., 7.741%, 6/15/13    2,662,500 
BB           4003   Rogers Wireless Communications, Inc., 5.525%, 12/15/10 (Canada)    412,000 
B2           1502   Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)    157,687 
        Total Telecommunications    9,705,531 
        Transportation—0.1%     
B1             302   Hertz Corp., 8.875%, 1/01/14    30,750 
B3           315    Horizon Lines LLC, 9.00%, 11/01/12    319,725 
        Total Transportation    350,475 
        Total Corporate Bonds    98,314,488 
        Bank Loans—117.4%     
        Aerospace & Defense—1.9%     
       2,948    Caci Intl., Inc., LIBOR + 1.50%, 2/04/07    2,945,526 
           896    Camp Acquisition Co., Loan A, LIBOR + 3.25%, 8/30/11    896,367 
           988    DI Finance/Dyncorp Intl., Loan B, LIBOR + 2.75%, 1/31/11    987,500 
       2,000    MRO Acquisition LLC, LIBOR + 5.25%, 9/15/11    2,005,000 
           313    Primus Intl., Inc.,     
           LIBOR + 2.50%, 6/16/12    313,281 
           188       0.50%, 6/16/12    187,969 
           826    Standard Aero Holdings, Inc., LIBOR + 2.25%, 8/18/12    823,629 

See Notes to Financial Statements.

7


BlackRock Global Floating Rate Income Trust (BGT) (continued)

    Principal         
    Amount         
    (000)    Description    Value 
        Aerospace & Defense—(cont’d)     
    $     493    U.S. Investigations Services LLC, Loan B, LIBOR + 2.50%, 10/15/12    $           492,066 
        Total Aerospace & Defense    8,651,338 
        Automotive—3.2%     
    1,000    Dana Corp., LIBOR + 2.25%, 4/12/08    999,375 
        Goodyear Tire & Rubber Co.,     
    500       LIBOR + 2.75%, 4/01/10    501,562 
    1,000       LIBOR + 3.50%, 4/01/11    1,008,000 
    1,000    GPX Intl. Tire Corp., LIBOR + 2.50%, 3/31/12    1,005,000 
    748    IAP Worldwide Services, Inc., LIBOR + 3.00%, 12/31/12    749,060 
    499    Keystone Automotive, Inc., Loan C, LIBOR + 2.50%, 11/30/10    498,127 
    1,000    Lear Corp., LIBOR + 2.50%, 3/23/12    991,042 
    926    Metaldyne Corp., Loan D, LIBOR + 4.50%, 12/31/09    937,159 
    498    Precision Parts Intl., Loan B, LIBOR + 3.75%, 10/15/11    496,256 
    1,246    Progressive Moulded Products Ltd., Loan B, LIBOR + 4.50%, 8/30/11    1,107,318 
    2,993    TI Group Automotive Systems, Loan C, LIBOR + 3.25%, 6/30/11    2,948,303 
        TRW Automotive Acquisitions Corp.,     
    491       Loan B, LIBOR + 1.50%, 6/30/12    490,183 
    2,469       Loan E, LIBOR + 1.50%, 10/31/10    2,464,430 
        Total Automotive    14,195,815 
        Basic Materials—12.2%     
    2,522    Appleton Papers, Inc., LIBOR + 2.25%, 6/30/10    2,531,007 
        Basell NV,     
    417       Loan B2, LIBOR + 2.50%, 9/30/13    421,701 
    83       Loan B4, LIBOR + 2.50%, 8/01/14    84,340 
    83       Loan C4, LIBOR + 3.00%, 8/01/13    84,340 
    417       Loan C2, LIBOR + 3.00%, 9/30/14    421,701 
    968    Berry Plastics Corp., LIBOR + 1.75%, 7/22/10    965,932 
    1,654    Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11    1,655,828 
        Brenntag Group,     
    1,607       Loan B2, LIBOR + 2.50%, 12/31/13    1,617,318 
    393       LIBOR + 2.50%, 1/18/14    395,673 
    1,000       LIBOR + 6.50%, 12/31/12    1,007,500 
    789    Buckeye Technologies, Inc., LIBOR + 2.00%, 4/15/10    786,736 
    3,579    Celanese AG, LIBOR + 2.00%, 6/03/11    3,584,300 
    2,000    Cognis Deutschland, Loan B, LIBOR + 4.75%, 11/15/13    2,035,834 
    938    Compass Minerals Group, Inc., LIBOR + 1.50%, 12/31/12    938,658 
    1,426    Foundation Coal Corp., Loan B, LIBOR + 1.75%, 7/30/11    1,425,277 
    985    Hercules, Inc., Loan B, LIBOR + 1.50%, 4/07/10    985,171 
    7,023    Huntsman Intl. LLC, Loan B, LIBOR + 1.75%, 8/15/12    6,984,184 
        Ineos Group Holdings PLC,     
    2,250       Loan A4, LIBOR + 2.25%, 12/16/12    2,256,187 
    1,750       Loan B2, LIBOR + 2.25%, 12/16/13    1,758,696 
    1,750       Loan C2, LIBOR + 2.75%, 12/16/14    1,760,063 
    3,444    Innophos, Inc., LIBOR, 8/15/10    3,445,789 
        Invista BV,     
    2,470       Loan B1, LIBOR + 1.50%, 4/30/11    2,469,391 
    1,256       Loan B2, LIBOR + 1.50%, 4/30/11    1,255,794 
    2,000    ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13    1,998,214 
    750    John Maneely Co., Loan B, LIBOR + 3.00%, 3/31/13    754,375 
    220    Kraton Polymers LLC, LIBOR + 2.00%, 12/15/10    218,892 
    5,777    Nalco Co., Loan B, LIBOR + 1.75%, 11/04/10    5,768,112 
    495    PQ Corp., LIBOR + 2.00%, 2/28/12    495,000 
    499    Pregis Corp., Loan B2, LIBOR + 2.50%, 10/15/12    644,306 
    500    Professional Paint, Inc., LIBOR + 2.25%, 5/30/12    501,250 
    2,833    Rockwood Specialties Group, Inc., Loan E, LIBOR + 2.00%, 8/15/12    2,835,869 

See Notes to Financial Statements.

8


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value 
      Basic Materials—(cont’d)     
      UPC Distribution Corp. (EUR),     
  $ 1,000       Loan J, LIBOR, 3/31/13    $    1,275,725 
  1,000       Loan K, LIBOR, 12/31/13    1,276,237 
      Total Basic Materials    54,639,400 
      Building & Development—2.9%     
  500    Contech Construction Products, Inc., LIBOR + 2.00%, 2/15/12    500,313 
  1,500    Custom Building Products, Inc., LIBOR + 5.00%, 4/30/12    1,504,375 
  500    Euramax Intl., Inc., LIBOR + 7.00%, 7/15/13    502,500 
  1,250    Harmon Koval, 3.25%, 12/31/06    1,250,000 
  2,000    Landsource Communities Development LLC, Loan B, LIBOR + 2.50%, 3/31/10    2,002,500 
  500    Nacco Industries, Inc., LIBOR + 2.00%, 3/31/13    498,750 
  982    Nortek, Inc., Loan B, LIBOR + 2.00%, 8/24/11    980,571 
  1,750    Ply Gem Industries, Inc., LIBOR + 2.25%, 8/15/11    1,745,624 
  650    Pro Build Holdings, TBD    649,594 
  950    Rhodes Ranch, LIBOR + 3.25%, 11/15/10    950,000 
  2,494    United Subcontractors, Inc., LIBOR + 3.00%, 12/31/12    2,487,516 
      Total Building & Development    13,071,743 
      Business Equipment & Services—0.2%     
  988    Latham Intl., PRIME + 2.75%, 12/31/10    987,510 
      Conglomerates—6.0%     
  500    AGY Holding Corp., LIBOR + 2.75%, 4/30/12    502,187 
      Atlantis Plastics, Inc.,     
  990       LIBOR + 2.75%, 9/30/11    991,237 
  750       LIBOR + 7.25%, 9/30/11    753,750 
  1,496    Blount Intl., Loan B, LIBOR + 1.75%, 8/15/10    1,507,472 
  4,988    Colfax Intl., (EUR), LIBOR + 2.25%, 11/30/11    6,387,238 
  1,710    Fidelity National Information Solutions, Inc., Loan B, LIBOR + 1.75%, 3/30/13    1,708,166 
  419    Gentek, Inc., LIBOR + 4.25%, 3/15/12    421,527 
  3,439    Honeywell Security, Loan B, PRIME + 2.00%, 6/28/10    3,438,807 
      Invensys Intl. Holdings Ltd.,     
  275       Loan B1, LIBOR + 3.50%, 8/30/09    272,816 
  1,727       LIBOR, 3/05/09    1,679,687 
  2,000       LIBOR + 4.75%, 11/30/09    2,020,000 
      Jarden Corp.,     
  498       Loan B2, LIBOR + 1.75%, 1/24/12    495,438 
  478       Loan B3, LIBOR + 1.75%, 1/24/12    475,296 
  1,496       LIBOR + 2.00%, 1/15/12    1,495,113 
  461    Lionbridge Technologies, Inc., LIBOR + 3.50%, 9/15/11    463,648 
  760    Mueller Group, Inc., Loan B, LIBOR + 2.25%, 9/30/12    762,747 
  367    Penn Engineering & Manufacturing, LIBOR + 2.25%, 4/30/11    371,211 
  2,439    Polypore, Inc., LIBOR + 3.00%, 11/15/11    2,455,213 
  670    Rexnord Corp., LIBOR + 2.25%, 10/31/09    672,017 
      Total Conglomerates    26,873,570 
      Consumer Products—16.9%     
  1,000    Aearo Technologies, Inc., LIBOR + 6.50%, 9/30/13    1,016,250 
  1,001    24 Hour Fitness Worldwide, Inc., Loan B, LIBOR + 2.50%, 6/30/12    1,004,375 
  465    Adams Outdoor Advertising LP, LIBOR + 1.75%, 10/15/12    465,927 
  998    Aearo Technologies, Inc., LIBOR + 2.50%, 3/31/13    1,004,150 
  1,980    Alliance One Intl., Inc., Loan B, LIBOR + 3.50%, 5/13/10    1,984,951 
  497    Arby’s Restaurant Group, Inc., Loan B, LIBOR + 2.25%, 7/31/12    495,733 
  500    Bare Escentuals Beauty, Inc., LIBOR + 7.00%, 7/10/13    505,000 
      Berkline Bench Craft,     
  1,583       Loan B, LIBOR + 3.75%, 10/31/11    1,345,373 
  2,000       LIBOR + 10.00%, 4/30/12    1,460,000 
  750    Bumble Bee Foods LLC, Loan B, LIBOR + 1.75%, 4/30/11    747,188 
  1,582    Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13    1,578,002 
  1,496    Burlington Coat Factory Warehouse Corp., Loan B, LIBOR + 2.25%, 4/15/13    1,449,760 
  885    Carrols Corp., LIBOR + 2.50%, 12/31/10    889,653 
  496    Centerplate, Inc., LIBOR + 3.25%, 10/15/10    498,102 

See Notes to Financial Statements.

9


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value 
      Consumer Products—(cont’d)     
  $ 1,000    Central Garden & Pet Co., Loan B, LIBOR + 1.50%, 9/30/12    $      998,333 
  495    Chiquita Brands Intl., Inc., Loan C, LIBOR + 2.25%, 7/15/13    493,556 
  896    CKE Restaurants, Inc., LIBOR + 2.00%, 5/17/09    901,471 
  999    Coinmach Corp., Loan B1, LIBOR + 2.50%, 12/15/12    1,001,905 
  1,668    Commonwealth Brands, Inc., LIBOR + 2.25%, 12/15/12    1,674,173 
  2,500    Cracker Barrel, Loan B, LIBOR + 1.50%, 5/15/13    2,489,375 
  743    Culligan Intl. Co., Loan B, LIBOR + 2.00%, 10/15/11    741,108 
  3,500    Denny’s Corp., LIBOR + 5.13%, 8/25/10    3,552,500 
  1,096    Desa Intl., Inc., LIBOR + 5.75%, 12/30/11    1,096,926 
      Eastman Kodak Co.,     
  878       Loan B1, LIBOR + 2.25%, 10/15/12    875,452 
  368       Loan B2, LIBOR + 2.25%, 10/15/12    366,575 
  1,000    Easton Bell Sports, Inc., Loan B, LIBOR + 1.75%, 3/31/12    999,167 
  1,353    Eight O’Clock Coffee, Loan B, LIBOR + 3.00%, 12/15/06    1,352,679 
  500    Fender Musical Instruments Corp., LIBOR + 6.00%, 9/30/12    501,250 
      Foodvest Ltd. (GBP),     
  438       Loan B, TBD    813,576 
  438       Loan C, TBD    817,621 
  1    Herbalife Intl., Inc., TBD    505 
      Hertz Corp.,     
  191       LIBOR + 2.25%, 12/31/07    190,989 
  359       LIBOR + 2.25%, 12/31/12    360,046 
  2    Knoll, Inc., TBD    1,883 
  988    Landry’s Restaurants, Inc., Loan B, LIBOR + 1.75%, 12/31/10    987,500 
  710    Language Line, Inc., Loan B, LIBOR + 4.25%, 6/14/11    713,479 
  574    Le-Natures, Inc., Loan B, LIBOR + 3.00%, 5/30/10    577,864 
  1,742    Maidenform, Inc., LIBOR + 1.75%, 5/14/10    1,742,424 
  898    Mapco Express, Inc., LIBOR + 2.75%, 5/15/11    899,344 
  1,444    Movie Gallery, Inc., Loan B, LIBOR + 5.25%, 4/30/11    1,396,172 
  1,661    Neiman-Marcus Group, Inc., LIBOR + 2.50%, 4/15/13    1,670,738 
  1,552    New Page, Loan B, LIBOR + 3.00%, 4/30/12    1,556,021 
  3,500    Olympus Cable Holdings LLC, Loan B, PRIME + 2.00%, 9/30/10    3,343,046 
  1,500    Orchard Supply Hardware Stores Corp., Loan B2, LIBOR + 2.45%, 12/09/07    1,500,000 
  543    Oreck Corp., Loan B, LIBOR + 2.75%, 1/31/12    546,312 
      Oriental Trading Co., Inc.,     
  1,326       Loan B, LIBOR + 2.25%, 8/06/10    1,329,283 
  1,500       LIBOR + 4.75%, 12/02/10    1,511,250 
  3,438    OSI Group LLC, Loan B, LIBOR + 1.75%, 9/15/11    3,435,452 
  1    Pantry, Inc., TBD    1,251 
  901    PBM Products LLC, Loan B, LIBOR + 3.00%, 7/31/11    900,864 
  2,140    Pierre Foods, Inc., Loan B, LIBOR + 2.00%, 7/15/10    2,137,325 
  750    Pivotal Promontory LLC, LIBOR + 6.50%, 9/15/11    745,000 
  1,960    Prestige Brands Holdings, Inc., Loan B, LIBOR + 2.25%, 4/07/11    1,966,533 
  956    Propex Fabrics, Inc., Loan B, LIBOR + 2.25%, 8/30/12    954,574 
  2,000    Quiznos Corp., LIBOR + 2.25%, 5/01/12    1,994,166 
  2,157    R.H. Donnelley, Inc., Loan D2, LIBOR + 1.50%, 12/31/11    2,146,066 
  1,497    Roundy’s Supermarkets, Inc., LIBOR + 3.00%, 11/15/11    1,503,732 
  673    Spectrum Brands, Inc., Loan B, LIBOR + 3.00%, 1/31/12    674,663 
  1,400    Sturm Foods, Inc., LIBOR, 5/31/11    1,401,750 
  1,496    Supervalu, Inc., TBD    1,492,509 
      Synventive Acquisition, Inc.,     
  746       Loan B, LIBOR + 3.50%, 7/27/12    723,863 
  808       LIBOR + 14.0%, 2/17/14    743,419 
  499    Travelcenters of America, Inc., Loan B, LIBOR + 1.75%, 6/30/11    498,750 
  923    Tupperware Corp., LIBOR + 1.50%, 11/07/12    917,199 
  525    Warnaco, Inc., Loan B, LIBOR + 1.50%, 1/31/12    523,031 
      Waterpik Technologies, Inc.,     
  500       LIBOR + 2.25%, 4/15/13    502,500 
  750       LIBOR + 6.50%, 10/15/13    761,250 
      Total Consumer Products    75,470,884 

See Notes to Financial Statements.

10


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value 
 
      Containers & Packaging—5.5%     
  $2,636    Bluegrass Container Co. LLC, TBD    $    2,636,364 
  200    Covalence Specialty Materials Corp., LIBOR + 3.25%, 8/15/13    201,417 
  329    Flexsol Packaging Corp., LIBOR + 3.25%, 11/30/11    329,839 
      Georgia-Pacific Corp.,     
  2,494       LIBOR + 2.00%, 2/28/13    2,488,296 
  1,500       LIBOR + 2.00%, 2/28/14    1,511,682 
      Graham Packaging Co. LP,     
  5,673       Loan B, LIBOR + 2.25%, 10/01/11    5,676,783 
  1,429       Loan C, LIBOR + 4.25%, 4/01/12    1,445,239 
  3,425    Graphic Packaging Intl., Inc., Loan C, LIBOR + 2.50%, 8/08/10    3,450,899 
  1,000    Mark IV Industries, Inc., TBD    1,000,000 
      Smurfit-Stone Container Enterprises, Inc.,     
  896       Loan B, LIBOR + 2.25%, 11/01/11    898,642 
  750       Loan B1, LIBOR + 2.50%, 2/15/14    965,883 
  750       Loan C1, LIBOR + 3.00%, 2/15/15    969,223 
  2,940    Solo Cup, Inc., LIBOR + 2.50%, 2/27/11    2,947,199 
      Total Containers & Packaging    24,521,466 
      Ecological Services & Equipment—0.5%     
      Envirosolutions, Inc.,     
  432       LIBOR + 3.50%, 2/28/09    435,946 
  1,568       LIBOR + 3.50%, 7/15/12    1,580,304 
      Total Ecological Services & Equipment    2,016,250 
      Energy—6.9%     
  1,500    AES Corp., LIBOR + 1.75%, 4/30/08    1,505,356 
  1,396    Astoria Generating Co. Acquisitions LLC, Loan B, LIBOR + 2.00%, 2/23/13    1,393,772 
      Boart Longyear Co.,     
  188       LIBOR + 3.00%, 7/28/12    188,844 
  1,304       LIBOR + 3.00%, 11/30/12    1,307,387 
  500       LIBOR + 7.00%, 4/30/13    505,000 
  958    Cellnet Technology, Inc., Loan B, LIBOR + 3.00%, 4/30/12    964,266 
      Coffeyville Resources LLC,     
  893       Loan B, LIBOR + 2.50%, 7/15/12    895,780 
  600       LIBOR + 2.50%, 6/22/11    601,688 
  355    Cogentrix Delaware Holdings, Inc., LIBOR + 1.50%, 4/30/12    354,699 
  500    Coleto Creek Power, Loan C1, LIBOR + 2.00%, 8/05/12    500,000 
  249    Complete Production Services, Inc., Loan B, LIBOR + 2.50%, 8/31/12    248,958 
      El Paso Production Holding Co.,     
  970       Loan B, LIBOR + 2.75%, 11/30/09    974,310 
  750       LIBOR + 2.85%, 11/23/09    753,333 
  1,497    Key Energy Services, Inc., Loan B, LIBOR + 3.25%, 8/15/12    1,501,861 
      LSP General Finance Co. LLC,     
  40       0.875%, 4/15/13    40,236 
  960       LIBOR + 1.75%, 4/15/13    955,597 
  469    Mainline LP, LIBOR + 2.38%, 12/31/11    471,792 
  500    Meg Energy Corp., Loan B, LIBOR + 2.25%, 4/15/13    501,250 
  432    MGG Holdings, LIBOR + 2.00%, 12/15/10    432,193 
  998    Mirant NA LLC, Loan B, LIBOR + 1.75%, 1/05/13    994,650 
  5,006    NRG Energy, Inc., LIBOR + 2.00%, 1/31/13    5,008,714 
  1,247    Petro Geological Services, Loan B, LIBOR + 2.50%, 12/31/12    1,250,383 
  389    Petrohawk, LIBOR + 4.50%, 7/31/10    390,833 
      Plum Point Energy Associates,     
  716       Loan B, LIBOR + 3.25%, 3/14/14    717,764 
  194       LIBOR + 3.75%, 3/14/14    194,852 
  2,984    Reliant Energy, Inc., LIBOR + 2.38%, 4/30/10    2,981,023 
  2,123    Semcrude LP, LIBOR + 2.25%, 2/28/11    2,128,947 
  1,498    Trinidad Energy Services Income Trust, LIBOR + 2.50%, 4/15/11    1,497,500 
      Wolf Hollow I LP,     
  100       0.50%, 6/22/12    99,688 
  894       Loan B, LIBOR + 2.25%, 6/15/12    891,049 
  500       LIBOR, 12/15/12    503,750 
      Total Energy    30,755,475 

See Notes to Financial Statements.

11


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value
      Entertainment & Leisure—7.6%     
  $      993    Blockbuster Entertainment Corp., Loan B, LIBOR + 3.75%, 8/20/11    $      992,275 
  1,965    Boyd Gaming Corp., Loan B, LIBOR + 1.50%, 5/14/11    1,965,000 
  3,229    CCM Merger, Inc., Loan B, LIBOR + 2.00%, 7/31/12    3,215,783 
  1,000    Century Theatres, Inc., LIBOR + 1.88%, 3/01/13    1,001,000 
  750    Edge Las Vegas, LIBOR, 6/15/07    750,000 
  2,000    Greektown Holdings LLC, Loan B, LIBOR + 2.50%, 12/15/12    2,012,500 
  2,500    Hallmark Entertainment LLC, Loan B, LIBOR + 2.50%, 12/31/11    2,503,125 
  1,493    Hit Entertainment Ltd., LIBOR + 2.25%, 8/31/12    1,494,366 
      Hollywood Theaters, Inc.,     
  1,719       LIBOR + 3.25%, 8/01/09    1,727,972 
  2,500       LIBOR + 7.00%, 1/21/10    2,518,750 
  1,485    Kerasotes Theatres, Inc., Loan B, LIBOR + 2.50%, 11/01/11    1,488,093 
  3,005    Metro-Goldwyn-Mayer Studios, Inc., Loan B, LIBOR + 2.25%, 4/15/12    3,017,293 
  996    Penn National Gaming, Inc., Loan B, LIBOR + 1.75%, 5/31/12    997,072 
  750    Riverside Casino & Golf Resort LLC, Loan B, LIBOR + 4.00%, 11/15/12    750,000 
  980    Universal City Development Partners LP, Loan B, LIBOR + 2.00%, 6/30/12    979,387 
  1,500    Venetian Casino Resorts LLC, Loan B, LIBOR + 1.75%, 6/15/11    1,500,000 
      Wembley, Inc.,     
  995       LIBOR + 2.00%, 8/31/11    994,378 
  500       LIBOR + 3.75%, 8/31/12    502,917 
  1,099    Wyndham Intl., Inc., Loan E, LIBOR + 4.50%, 9/11/07    1,099,350 
  4,000    Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., LIBOR + 2.13%, 12/31/11    4,009,168 
  477    Yellowstone Mountain Club, LIBOR + 2.375%, 10/15/10    477,451 
      Total Entertainment & Leisure    33,995,880 
      Financial Institutions—12.8%     
  1,001    Advantage Sales & Marketing, Inc., LIBOR + 2.00%, 4/15/13    990,000 
  750    Ameritrade Holding Corp., Loan B, LIBOR + 1.50%, 1/31/13    747,938 
  1,020    Arias Acquisitions, Inc., LIBOR + 3.75%, 7/30/11    1,002,150 
  2,000    Audatex, LIBOR + 5.50%, 10/15/13 (EUR)    2,611,394 
  4,975    Billing Services Group, LIBOR + 2.50%, 5/05/12 (EUR)    6,363,276 
  500    CCC Information Services Group, Inc., Loan B, LIBOR + 2.50%, 2/15/13    501,666 
  10,000    Century Corp., PRIME + 2.00%, 12/31/09    9,557,140 
  2    Global Cash Access LLC, TBD    17,860 
      GS Holdings Corp.,     
  64       0.50%, 5/15/13    63,438 
  686       LIBOR + 1.75%, 5/15/13    684,219 
  3,354    Jostens, Inc., Loan C, LIBOR + 2.00%, 10/15/11    3,363,807 
  750    Level 3 Financing, TBD    749,062 
  2,000    Moeller Group, LIBOR, 9/17/12    2,597,751 
  1,088    N.E.W. Holdings I LLC, LIBOR + 3.00%, 7/15/11    1,093,075 
      Nasdaq Stock Market, Inc.,     
  1,266       Loan B, LIBOR + 1.75%, 4/18/12    1,263,821 
  734       Loan C, LIBOR + 1.75%, 4/18/12    732,862 
  6,000    Navistar Financial Corp., LIBOR + 5.00%, 2/28/09    6,030,000 
  3,000    NTL, Inc., Loan A, LIBOR + 5.00%, 3/23/11    2,996,250 
      Owens Illinois Group, Inc.,     
  2,000       Loan B, LIBOR, 6/30/13 (EUR)    2,558,101 
  1,000       Loan B, LIBOR, 6/30/13    999,583 
  1,493    Pinnoak Resources LLC, LIBOR + 3.25%, 11/22/12    1,485,037 
  1,247    Professional Service, Inc., Loan B, LIBOR + 3.00%, 10/31/12    1,250,772 
  1,908    Ripplewood Phosphorus U.S. LLC, LIBOR + 3.25%, 7/16/11    1,884,009 
  1,500    Targa Resources, Inc., LIBOR + 2.25%, 10/31/07    1,498,750 
  3,744    TPG Springs, Loan C, TBD (GBP)    5,945,495 
  461    USI Holdings Corp., Loan B, LIBOR + 2.25%, 7/30/08    464,133 
      Total Financial Institutions    57,451,589 
      Health Care—8.3%     
  3,361    Arizant, Inc., LIBOR + 3.75%, 8/15/10    3,369,183 
  1,995    CCS Medical, Loan B, LIBOR + 3.25%, 10/31/12    1,898,368 
  2,363    Community Health Systems, Inc., LIBOR + 1.75%, 8/15/11    2,364,580 
  3,271    Concentra Operating Corp., Loan B, LIBOR + 2.00%, 9/30/11    3,277,132 

See Notes to Financial Statements.

12


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value
      Health Care—(cont’d)     
  $      902    Davita, Inc., Loan B, LIBOR + 2.00%, 6/30/12    $     903,338 
  796    Duloxetine Royalty, LIBOR + 4.50%, 10/15/13    800,306 
  6,000    Healthsouth Corp., Loan B, LIBOR + 3.25%, 3/15/13    5,995,716 
  2,948    IASIS Healthcare Corp., Loan B, LIBOR + 2.25%, 6/30/11    2,960,395 
  2,480    Jean Coutu Group, Inc., Loan B, LIBOR + 2.50%, 6/30/11    2,481,585 
  467    Kinetic Concepts, Inc., Loan B2, LIBOR + 1.75%, 8/05/10    469,983 
  1,000    Multiplan, Inc., LIBOR + 2.00%, 4/15/13    994,583 
  1,000    National Renal Institutes, Inc., Loan B, LIBOR + 2.25%, 4/15/13    997,500 
      Quintiles Transnational Corp.,     
  1,001       LIBOR + 2.00%, 3/31/13    998,438 
  250       LIBOR + 4.00%, 3/31/14    253,203 
  499    Radnet Management, Inc., Loan B, LIBOR + 4.00%, 3/15/11    497,503 
  1,001    Select Medical Corp., Loan B , LIBOR +1.75%, 2/28/12    978,491 
  3,014    U.S. Oncology, Inc., LIBOR + 2.25%, 6/30/11    3,024,853 
  990    Vanguard Health Holding Co. II, LIBOR + 2.25%, 9/30/11    993,306 
      Warner Chilcott Corp.,     
  2,161       Loan B, LIBOR + 2.50%, 1/18/11    2,168,368 
  871       Loan C, LIBOR + 2.50%, 1/18/11    873,746 
  402       Loan D, LIBOR + 2.50%, 1/18/11    403,646 
  530       LIBOR + 2.50%, 1/18/11    531,342 
      Total Health Care    37,235,565 
      Industrials—1.8%     
  150    Acosta, Inc., LIBOR + 5.75%, 6/15/13    153,000 
  408    Alderwoods Group, Inc., Loan B2, LIBOR + 2.00%, 9/29/09    408,311 
      Bolthouse Farms, Inc.,     
  998       LIBOR + 2.50%, 12/01/12    1,003,111 
  500       LIBOR + 5.50%, 12/01/13    506,875 
  403    Chart Industries, Inc., Loan B, LIBOR + 2.00%, 10/15/12    402,526 
  2,000    Drummond Co., Inc., LIBOR + 1.25%, 2/15/12    1,997,501 
      Novelis, Inc.,     
  229       Loan B, LIBOR + 2.25%, 1/13/10    229,354 
  398       Loan B, LIBOR + 2.25%, 12/30/11    398,352 
  625    QTC Acquisition, Inc., LIBOR + 6.50%, 5/04/13    625,000 
  2,000    Tinnerman Palnut Engineered Products, Inc., LIBOR + 7.75%, 11/01/11    1,940,000 
  308    Worldspan LP, LIBOR + 2.75%, 6/30/07    304,075 
      Total Industrials    7,968,105 
      Media—16.3%     
  1,840    Alliance Atlantis Communications, Inc., Loan C, LIBOR + 1.50%, 11/30/11    1,834,705 
      American Lawyers Media, Inc.,     
  1,719       LIBOR + 2.50%, 3/15/10    1,714,244 
  2,000       LIBOR + 5.75%, 3/07/11    2,011,500 
  1,000    American Media Operations, Inc., Loan B, LIBOR + 3.00%, 1/31/13    1,005,750 
  973    Bragg Communications, Inc., Loan B, LIBOR + 2.00%, 9/15/11    972,576 
  1,250    Bresnan Communications Group LLC, LIBOR + 2.00%, 10/15/13    1,256,980 
  6,398    Cablecom SCA, Loan A, LIBOR, 12/31/10 (CHF)    5,235,632 
  4,000    Cablevision Systems Corp., LIBOR + 1.50%, 3/31/13    3,977,916 
  2,000    Century TCI California LP, PRIME, 12/31/07    1,983,334 
      Cequel Communications LLC,     
  3,500       Loan B, LIBOR + 2.25%, 11/01/13    3,477,498 
  2,500       LIBOR + 2.25%, 11/01/13    2,483,928 
  3,500    Charter Communications Holdings LLC/Charter Communication Holdings Capital Corp.,     
         LIBOR + 2.63%, 4/28/13    3,505,148 
  739    CMP Susquehanna Corp., Loan B, LIBOR + 2.00%, 5/05/12    738,593 
  3,443    Dex Media East LLC, Loan B, LIBOR + 1.50%, 12/31/08    3,424,338 
      Dex Media West LLC,     
  882       Loan B1, LIBOR + 1.50%, 9/09/10    877,016 
  1,566       Loan B2, LIBOR + 1.50%, 9/01/09    1,556,750 
  2,000    DirecTV Holdings LLC, Loan B, LIBOR + 1.50%, 3/06/10    1,998,612 
  798    Emmis Communications Co., Loan B, LIBOR + 1.75%, 5/15/12    799,101 
  1,250    Gatehouse Media Operating, Inc., TBD    1,247,656 

See Notes to Financial Statements.

13


BlackRock Global Floating Rate Income Trust (BGT) (continued)

  Principal         
  Amount         
  (000)    Description    Value
      Media—(cont’d)     
      Insight Midwest Holdings LLC,     
  $    3,550       Loan A, LIBOR + 1.25%, 6/30/09    $       3,530,560 
  2,977       Loan C, LIBOR + 2.00%, 12/31/09    2,975,606 
  4,000    KDG Media Technologies AG, Loan A, PRIME, 3/31/12 (EUR)    5,128,409 
  1,496    Liberty Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 2/15/13    1,493,445 
  1,500    Mediacom Broadband LLC, TBD    1,494,375 
  1,971    Mediacom Communications Corp., Loan A, LIBOR + 1.00%, 3/31/10    1,952,125 
  1,975    Mediacom Illinois LLC, Loan C, LIBOR + 1.75%, 1/15/15    1,967,240 
  300    Medianews Group, Inc., TBD    300,125 
  1,936    Mission Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12    1,931,345 
      NEP Supershooters LP,     
  676       LIBOR + 4.00%, 2/01/11    681,610 
  500       LIBOR + 8.00%, 8/01/11    505,000 
  1,250    New Wave Communications, TBD    1,250,000 
  1,926    Nexstar Finance, Inc., Loan B, LIBOR + 1.75%, 8/14/12    1,921,055 
  500    Prism Business Media, Inc., Loan B, LIBOR + 2.25%, 10/15/12    500,000 
  750    Puerto Rico Cable Acquisition Co., LIBOR + 6.25%, 7/31/11    753,750 
  748    Quebecor Media, Inc., Loan B, LIBOR + 2.00%, 1/17/13    749,528 
      TDC,     
  1,000       Loan B2, TBD    1,290,535 
  1,000       Loan C2, TBD    1,295,705 
  148    Triple Crown Media, Inc., LIBOR + 3.25%, 12/30/12    147,610 
  500    Wide Open West Finance LLC, Loan B, LIBOR + 2.25%, 4/30/13    500,000 
  1,919    WMG Acquisition Corp., LIBOR + 2.00%, 4/08/11    1,920,678 
  997    Young Broadcasting, Inc., LIBOR + 2.50%, 11/01/12    992,514 
      Total Media    73,382,492 
      Publishing—0.2%     
  748    Endurance Business Media, Loan B, LIBOR + 2.25%, 3/15/12    748,125 
      Real Estate—1.4%     
  1,055    Acoustical Materials, LIBOR + 2.75%, 4/30/12    1,054,567 
  2,596    Headwaters, Inc., LIBOR + 2.00%, 4/30/11    2,597,906 
  781    Kyle Acquisition Group LLC, LIBOR + 2.00%, 7/31/08    780,371 
  866    Lake Las Vegas Resort, LIBOR + 2.75%, 10/13/09    866,594 
  496    Masonite Intl. Corp., LIBOR + 2.00%, 3/31/13    489,717 
  403    Stewart Enterprises, Inc., Loan B, LIBOR + 1.75%, 11/30/11    402,737 
      Total Real Estate    6,191,892 
      Technology—4.4%     
  500    Activant Solutions, Inc., Loan B, LIBOR + 2.00%, 4/30/13    495,312 
  748    Affiliated Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13    746,259 
  750    Crown Castle Intl. Corp., TBD    752,813 
  2,908    Directed Electronics, Inc., LIBOR + 2.25%, 3/15/10    2,917,837 
  500    Electrical Components Intl. Holdings Co., LIBOR + 6.50%, 5/19/14    501,250 
  495    Federal IT Systems, Inc., LIBOR + 2.50%, 4/30/11    497,165 
  1,001    Nuance Communications, Inc., LIBOR + 2.00%, 12/29/13    991,875 
      Sensata Technologies BV,     
  2,000       Loan B, LIBOR + 1.75%, 4/30/13    1,986,786 
  1,500       TBD (EUR)    1,918,576 
  352    SS&C Technologies, Inc., LIBOR + 2.50%, 11/04/12    352,972 
  2,481    Sungard Data Systems, Inc., Loan B, LIBOR + 2.50%, 1/05/13    2,487,247 
  2,114    UGS Corp., LIBOR + 2.00%, 5/30/11    2,108,436 
  2,868    Verifone, Inc., Loan B, LIBOR + 1.75%, 6/30/11    2,864,238 
  1,286    Westcom Corp., Loan B, LIBOR + 2.75%, 12/31/10    1,290,884 
      Total Technology    19,911,650 
      Telecommunications—7.2%     
  1,000    Alaska Communications Systems Holdings, Inc., LIBOR + 1.75%, 1/31/12    998,000 
  2,000    Atlantic Broadband Finance LLC, Loan B1, LIBOR + 2.75%, 1/30/11    2,031,250 
  450    Cavalier Telecom, Loan B, LIBOR + 4.50%, 3/31/12    454,500 
  4,369    Centennial Cellular Operating Co., LIBOR + 2.25%, 2/09/11    4,380,037 
  500    Communication Supply Corp., LIBOR + 2.75%, 2/28/12    500,000 

See Notes to Financial Statements.

14


BlackRock Global Floating Rate Income Trust (BGT) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Telecommunications—(cont’d)     
    $     500    Country Road Communications LLC, LIBOR, 6/30/13    $       506,250 
    750    Fairpoint Communications, Inc., LIBOR + 1.75%, 2/15/12    746,813 
    988    Intelsat Zeus Ltd., PRIME + 0.75%, 7/31/11    987,088 
    2,000    Iowa Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11    1,999,584 
        IPC Acquisition Corp.,     
    959       LIBOR + 2.75%, 8/15/11    961,508 
    750       LIBOR + 7.25%, 8/15/12    757,500 
    1,000    Madison River Capital LLC, Loan B1, LIBOR + 2.25%, 7/31/12    1,001,250 
    500    Nortel Networks Corp., Loan A, LIBOR + 2.00%, 2/15/07    498,750 
    741    NTELOS, Inc., LIBOR + 2.25%, 2/24/10    739,468 
    750    Nuvox Communications, TBD    755,625 
        PanAmSat Corp.,     
    819       Loan A1, LIBOR + 2.50%, 8/20/09    819,818 
    428       Loan A2, LIBOR + 2.50%, 8/20/09    427,588 
    1,970       Loan B1, LIBOR + 2.00%, 7/16/11    1,975,492 
    2,000    Qwest Corp., Loan A, LIBOR + 4.75%, 6/30/07    2,027,750 
    449    Triton PCS, Inc., LIBOR + 3.25%, 11/15/09    450,884 
    1,433    Valor Telecommunication Enterprises II LLC, Loan B, LIBOR + 1.75%, 2/28/12    1,432,736 
        Wind Acquisition Finance SA,     
    2,000       Loan B1, LIBOR + 2.75%, 7/31/12    2,564,496 
    2,000       Loan C1, LIBOR + 3.25%, 7/31/13    2,577,287 
    2,000       TBD    2,552,105 
        Total Telecommunications    32,145,779 
`        Transportation—1.2%     
    875    Delta Air Lines, Inc., Loan A, LIBOR + 2.75%, 4/15/08    882,344 
    360    Sirva Worldwide, Inc., LIBOR + 4.50%, 12/31/09    350,062 
    607    Transport Industries LP, Loan B, LIBOR + 2.50%, 9/30/11    608,501 
    875    UAL Corp., Loan B, LIBOR + 3.75%, 1/31/12    883,203 
    2,500    Vanguard Car Rental Holdings, Inc., TBD    2,503,125 
        Total Transportation    5,227,235 
        Total Bank Loans    525,441,763 
        Foreign Government Bonds—24.7%     
B    3,840    Argentina Republic, 4.005%, 8/03/12    3,175,680 
BB-    4,357    Bolivarian Republic of Venezuela, 2.75%, 12/18/07    4,356,736 
        Federative Republic of Brazil,     
BB    9,4353      7.72%, 6/29/09    10,732,312 
BB    640       Ser. B, 10.00%, 8/07/11    727,360 
B+    1,600    Islamic Republic of Pakistan, 6.75%, 2/19/09    1,570,778 
BB+    5,6893   Kingdom of Morocco, 5.688%, 1/02/09    5,631,998 
A-    8004   Malaysia, 8.75%, 6/01/09    858,000 
A    2,4004   Republic of Chile, 6.875%, 4/28/09    2,469,000 
NR    1,2003   Republic of Colombia, 8.047%, 3/17/13    1,311,000 
BB    3,200    Republic of Costa Rica, 9.335%, 5/15/09    3,416,000 
BB+    800    Republic of El Salvador, 9.50%, 8/15/06    803,200 
        Republic of Panama,     
BB    12,714       2.75%, 7/17/16    12,714,273 
BB    2,000       8.25%, 4/22/08    2,070,000 
        Republic of Peru,     
BB    5,432       4.50%, 3/07/17    5,173,980 
BB    2,400       9.125%, 1/15/08    2,496,000 
BBB+    2,4004   Republic of South Africa, 7.375%, 4/25/12    2,502,000 
BB-    2,400    Republic of the Philippines, 8.875%, 4/15/08    2,474,347 
BB-    2,400    Republic of Turkey, 12.00%, 12/15/08    2,616,000 
NR    950    Republic of Uruguay, 6.875%, 1/19/16 (EUR)    1,163,456 
        Republic of Venezuela,     
BB-    2,214       3.063%, 3/31/07    2,213,931 
BB-    4,0003      6.09%, 4/20/11    3,990,000 
NR    4,800       9.125%, 6/18/07    4,903,200 
BB-    2,000       11.00%, 3/05/08 (EUR)    2,821,074 

See Notes to Financial Statements.

15


BlackRock Global Floating Rate Income Trust (BGT) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Foreign Government Bonds—(cont’d)     
BBB    $    4,000    Russian Federation, 10.00%, 6/26/07    $ 4,148,000 
        Ukraine,     
BB-    16,1002 ,3,4    6.365%, 8/05/09    16,864,750 
BB-    2,8002      6.875%, 3/04/11    2,730,000 
        United Mexican States,     
BBB         4,8003 ,4    5.75%, 1/13/09    4,834,800 
NR    10,000       8.00%, 12/24/08 (MXN)    879,974 
NR    9,820       9.00%, 12/22/11 (MXN)    883,876 
      Total Foreign Government Bonds    110,531,725 
             
    Shares         
        Common Stock—0.0%     
    9475   Critical Care Systems Intl., Inc.    4,482 
        Total investments—164.1% (cost $732,049,8066)    $ 734,292,458 
        Liabilities in excess of other assets—(9.7)%    (43,367,262)
        Preferred shares at redemption value, including dividends payable—(54.4)%    (243,516,274)
        Net Assets Applicable to Common Shareholders—100%    $ 447,408,922 


1Using the higher of S&P, Moody’s or Fitch rating.

2Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 7.2% of its net assets, with a current market value of $32,258,997, in securities restricted as to resale.

3Variable rate security. Rate shown is interest rate as of June 30, 2006.

4Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.

5Non-income producing security.

6Cost for Federal income tax purposes is $732,180,724. The net unrealized appreciation on a tax basis is $2,111,734, consisting of $7,641,991 gross unrealized appreciation and $5,530,257 gross unrealized depreciation.

 

A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the Securities and Exchange Commission’s (“SEC’s”) Standard Industry Codes.

KEY TO ABBREVIATIONS 
CHF    Swiss Franc    GBP    British Pound 
CND    Canadian Dollar    MXN    Mexican Peso 
EUR    European Monetary Unit    TBD    To Be Determined 

See Notes to Financial Statements.

16


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock High Income Shares (HIS)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
 
        LONG-TERM INVESTMENTS—141.4%     
        Corporate Bonds—139.6%     
        Aerospace & Defense—5.7%     
BB-    $      250    AAR Corp., 6.875%, 12/15/07    $       250,313 
B    630    Argo-Tech Corp., 9.25%, 6/01/11    648,900 
B+    80    Armor Holdings, Inc., 8.25%, 8/15/13    82,800 
BB    1,750    Availl, Inc., 7.625%, 7/01/11    1,824,375 
        BE Aerospace, Inc.,     
BB-    1,135       8.50%, 10/01/10    1,194,587 
B    420       8.875%, 5/01/11    434,700 
B    2,875    DI Finance/DynCorp. Intl., 9.50%, 2/15/13    2,990,000 
B    170    DRS Technologies, Inc., 7.625%, 2/01/18    168,725 
BB    270    Sequa Corp., 9.00%, 8/01/09    284,175 
        Total Aerospace & Defense    7,878,575 
        Automotive—3.0%     
        Autonation, Inc.,     
BB+    3602      7.00%, 4/15/14    356,400 
BB+    3602 ,3    7.045%, 4/15/13    363,600 
BB-    702 ,3 Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14    69,650 
CCC-    500    Delco Remy Intl., Inc., 9.375%, 4/15/12    280,000 
CCC    130    Dura Operating Corp., 8.625%, 4/15/12    110,500 
B    405    Lear Corp., 8.11%, 5/15/09    392,850 
BB-    22    Meritor Automotive, Inc., 6.80%, 2/15/09    21,450 
CCC+    1,735    Metaldyne Corp., 10.00%, 11/01/13    1,674,275 
CCC+    200    Stanadyne Corp., 10.00%, 8/15/14    185,500 
B    155    Tenneco, Inc., 8.625%, 11/15/14    155,000 
BB-    550    TRW Automotive, Inc., 9.375%, 2/15/13    584,375 
        Total Automotive    4,193,600 
        Basic Materials—14.7%     
        Abitibi-Consolidated, Inc., (Canada)     
B+    155       6.00%, 6/20/13    125,550 
B+    180       8.375%, 4/01/15    163,800 
B+    595    AK Steel Corp., 7.75%, 6/15/12    586,075 
B-    1,200    Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12    1,287,000 
B    2152 ,3 BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.099%, 7/15/10    219,300 
BB-    3503   Bowater, Inc., 7.91%, 3/15/10    352,625 
B+    275    Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)    246,125 
BB+    60    Chemtura Corp., 6.875%, 6/01/16    57,975 
BB-    1,010    Del Monte Corp., 8.625%, 12/15/12    1,037,775 
        Domtar, Inc. (Canada),     
B+    160       7.125%, 8/15/15    139,200 
B+    640       7.875%, 10/15/11    603,200 
B+    390    Donohue Forest Products, 7.625%, 5/15/07 (Canada)    393,900 
        Equistar Chemicals LP/Equistar Funding Corp.,     
BB-    125       8.75%, 2/15/09    128,750 
BB-    2,780       10.125%, 9/01/08    2,939,850 
BB-    1,250       10.625%, 5/01/11    1,343,750 
B3    5002   Huntsman Intl. LLC, 7.375%, 1/01/15    468,750 
        Huntsman LLC,     
Ba3    1,450       11.625%, 10/15/10    1,605,875 
B2    4203      12.318%, 7/15/11    437,850 
BB    200    IMC Global, Inc., 10.875%, 6/01/08    213,000 
B2    9852   Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)    928,362 
CCC+    2,205    Innophos, Inc., 8.875%, 8/15/14    2,180,194 
B+    300    Jacuzzi Brands, Inc., 9.625%, 7/01/10    316,500 
BB+    790    Lyondell Chemical Co., 10.50%, 6/01/13    870,975 
B-    345    Nalco Co., 8.875%, 11/15/13    346,294 
B3    985    NewPage Corp., 10.00%, 5/01/12    1,019,475 

See Notes to Financial Statements.

17


BlackRock High Income Shares (HIS) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Basic Materials—(cont’d)     
        Nova Chemicals Corp. (Canada),     
BB     $       100       6.50%, 1/15/12    $      92,000 
BB       1,2603      8.405%, 11/15/13    1,260,000 
        Rhodia SA (France),     
B-           980       8.875%, 6/01/11    982,450 
B-           162       10.25%, 6/01/10    173,340 
        Total Basic Materials    20,519,940 
        Building & Development—3.9%     
B2           5402   Compression Polymers Corp., 10.50%, 7/01/13    548,100 
B       2,000    ERICO Intl. Corp., 8.875%, 3/01/12    2,045,000 
B-       1,000    Goodman Global Holding Co., Inc., 7.875%, 12/15/12    967,500 
Ba2       1,000    K Hovnanian Enterprises, Inc., 7.75%, 5/15/13    912,500 
        North American Energy Partners, Inc. (Canada),     
Caa1           685       8.75%, 12/01/11    661,025 
B           330       9.00%, 6/01/10    348,150 
        Total Building & Development    5,482,275 
        Consumer Products—8.5%     
CCC+           6953   Ames True Temper, Inc., 9.068%, 1/15/12    682,837 
CCC+           4752   Burlington Coat Factory Warehouse Corp., 11.125%, 4/15/14    456,000 
B-           565    Cenveo Corp., 7.875%, 12/01/13    550,875 
B3           280 2   Education Management LLC/Education Management Corp., 8.75%, 6/01/14    277,200 
B-           930    Finlay Fine Jewelry Corp., 8.375%, 6/01/12    806,775 
B           928    Gold Kist, Inc., 10.25%, 3/15/14    969,760 
B-       1,5852   Knowledge Learning Corp., Inc., 7.75%, 2/01/15    1,450,275 
B-       2,425    Lazydays RV Center, Inc., 11.75%, 5/15/12    2,291,625 
B           1103   Levi Strauss & Co., 7.73%, 4/01/12    111,650 
CCC-       1,230    Merisant Co., 9.50%, 7/15/13    774,900 
B2           2402   Neiman-Marcus Group, Inc., 9.00%, 10/15/15    250,800 
B3           1102 ,3 Nutro Products, Inc., 9.23%, 10/15/13    112,063 
        Quebecor World, Inc. (Canada),     
BB-    85       6.125%, 11/15/13    70,468 
BB-           4902      8.75%, 3/15/16    445,570 
BB-           400    Quiksilver, Inc., 6.875%, 4/15/15    369,000 
BB+           3502   Reynolds American, Inc., 7.625%, 6/01/16    341,688 
        Rite Aid Corp.,     
B-           750       4.75%, 12/01/06    743,437 
B-           3552      6.125%, 12/15/08    345,681 
BB-           250       8.125%, 5/01/10    251,563 
CCC+           500    Swift & Co., 12.50%, 1/01/10    497,500 
        Total Consumer Products    11,799,667 
        Containers & Packaging—6.6%     
B1           4302   Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15    421,400 
B       1,575    Crown Cork & Seal, Inc., 8.00%, 4/15/23    1,449,000 
B           285    Crown European Holdings SA, 7.375%, 12/15/26    248,663 
CCC+           125    Graham Packaging Co., Inc., 8.50%, 10/15/12    122,500 
B+       1,000    Jefferson Smurfit Corp., 7.50%, 6/01/13    895,000 
B       2,600    Owens Brockway, 8.25%, 5/15/13    2,619,500 
B           250    Owens Illinois, Inc., 7.35%, 5/15/08    251,875 
B-           2502   Packaging Dynamics Finance Corp., 10.00%, 5/01/16    250,000 
CCC+           9452   Pregis Corp., 12.375%, 10/15/13    982,800 
B+       1,870    Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11    1,923,762 
        Total Containers & Packaging    9,164,500 
        Ecological Services & Equipment—1.2%     
BB-           200    Allied Waste NA, Inc., 8.50%, 12/01/08    207,000 
B           400    Casella Waste Systems, Inc., 9.75%, 2/01/13    418,500 
CCC           800    Waste Services, Inc., 9.50%, 4/15/14    805,000 
B2           3002   WCA Waste Corp., 9.25%, 6/15/14    303,000 
        Total Ecological Services & Equipment    1,733,500 

See Notes to Financial Statements.

18


BlackRock High Income Shares (HIS) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Energy—18.2%     
BB    $      250    AES Corp., 9.50%, 6/01/09    $       265,000 
Ba2    285    ANR Pipeline Co., 9.625%, 11/01/21    329,887 
B2    305    Aquila Finance Corp., 7.75%, 6/15/11 (Canada)    315,675 
B    420 2   Chaparral Energy, Inc., 8.50%, 12/01/15    416,850 
        Chesapeake Energy Corp.,     
BB    435       6.375%, 6/15/15    404,550 
BB    235       6.625%, 1/15/16    220,313 
BB-    110    ChipPAC, Inc., 2.50%, 6/01/08    107,763 
        CMS Energy Corp.,     
BB-    80       7.50%, 1/15/09    81,200 
BB-    160       8.50%, 4/15/11    166,800 
BB-    390    Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)    381,225 
B    815    Compton Petroleum Finance Corp., 7.625%, 12/01/13    768,137 
B    1,875    Dynegy Danskammer LLC, 7.27%, 11/08/10    1,875,000 
NR    740    East Cameron Gas Co., 11.25%, 7/09/19 (Cayman Islands)    740,000 
B+    602   Edison Mission Energy, 7.50%, 6/15/13    58,800 
        El Paso Corp.,     
B    3,2502      9.625%, 5/15/12    3,514,062 
B    2052      10.75%, 10/01/10    224,219 
Ba2    50    El Paso Natural Gas Co., 8.875%, 6/15/32    53,250 
B+    682    Elwood Energy LLC, 8.159%, 7/05/26    736,188 
B-    1,180    Exco Resources, Inc., 7.25%, 1/15/11    1,126,900 
Ba1    100    Grant Prideco, Inc., 6.125%, 8/15/15    92,000 
        Hilcorp Energy I LP/Hilcorp Finance Corp.,     
B    7752      7.75%, 11/01/15    732,375 
B    1392      10.50%, 9/01/10    149,773 
BBB-    152    Homer City Funding LLC, 8.734%, 10/01/26    169,194 
B-    720    KCS Energy, Inc., 7.125%, 4/01/12    678,600 
        Midwest Generation LLC,     
B+    200       8.56%, 1/02/16    210,759 
Ba3    295       8.75%, 5/01/34    313,438 
        Mirant Americas Generation LLC,     
B    180       8.30%, 5/01/11    177,750 
B    1,160       9.125%, 5/01/31    1,131,000 
B2    1,465    Mission Energy Holdings Co., 13.50%, 7/15/08    1,637,137 
        NRG Energy, Inc.,     
B1    100       7.25%, 2/01/14    97,625 
B1    570       7.375%, 2/01/16    556,462 
B-    1,510    Orion Power Holdings, Inc., 12.00%, 5/01/10    1,713,850 
B+    1302   Pogo Producing Co., 7.875%, 5/01/13    129,025 
        Reliant Energy, Inc.,     
BB-    210       6.75%, 12/15/14    193,725 
BB-    285       9.25%, 7/15/10    285,000 
Ba1    734    Salton SEA Funding, 8.30%, 5/30/11    766,623 
Ba2    305    Southern Natural Gas Co., 8.00%, 3/01/32    312,625 
B    4002 ,3 Stone Energy Corp., 8.24%, 7/15/10    399,816 
B-    3452   Targa Resources, Inc., 8.50%, 11/01/13    332,925 
Ba2    5912   Tenaska Alabama Partners LP, 7.00%, 6/30/21    573,422 
BBB-    60    Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26    58,200 
BBB-    200    TXU Corp., 6.55%, 11/15/34    176,037 
        Whiting Petroleum Corp.,     
B2    35       7.00%, 2/01/14    33,075 
B2    650       7.25%, 5/01/13    835,200 
BB+    1,660    Williams Cos., Inc., 8.75%, 3/15/32    1,817,700 
        Total Energy    25,359,155 
        Entertainment & Leisure—5.6%     
B3    470    AMC Entertainment, Inc., 11.00%, 2/01/16    502,900 
BB+    500    Caesars Entertainment, Inc., 7.875%, 3/15/10    518,750 
Ba3    2503   Felcor Lodging LP, 9.57%, 6/01/11    257,500 

See Notes to Financial Statements.

19


BlackRock High Income Shares (HIS) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Entertainment & Leisure—(cont’d)     
        Gaylord Entertainment Co.,     
B-    $     450       6.75%, 11/15/14    $       417,375 
B-    1,000       8.00%, 11/15/13    998,750 
B3    8402   Greektown Holdings LLC, 10.75%, 12/01/13    883,050 
B    3502   Pokagon Gaming Authority, 10.375%, 6/15/14    361,813 
B    905    Poster Financial Group, Inc., 8.75%, 12/01/11    938,937 
B-    705    Riddell Bell Holdings, Inc., 8.375%, 10/01/12    694,425 
BBB-    500    Royal Caribbean Cruises Ltd., 6.875%, 12/01/13    489,942 
B+    1402   San Pasqual Casino, 8.00%, 9/15/13    140,350 
BB    630    Seneca Gaming Corp., 7.25%, 5/01/12    613,462 
B+    300    Station Casinos, Inc., 6.625%, 3/15/18    272,250 
B    500    Virgin River Casino, 9.00%, 1/15/12    500,000 
B+    150    Warner Music Group, 7.375%, 4/15/14    145,125 
B+    125    Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14    118,906 
        Total Entertainment & Leisure    7,853,535 
        Financial Institutions—12.8%     
B+    277    AES Ironwood LLC, 8.857%, 11/30/25    299,808 
B    625    BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)    671,875 
BB    170    Crum & Forster Holdings Corp., 10.375%, 6/15/13    172,975 
        E*Trade Financial Corp.,     
Ba2    220       7.375%, 9/15/13    220,000 
Ba2    205       7.875%, 12/01/15    210,125 
BB    1,075    Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)    946,000 
        Ford Motor Credit Co.,     
BB    190       5.70%, 1/15/10    165,584 
BB    450       7.25%, 10/25/11    399,170 
BB    1,620    General Motors Acceptance Corp., 6.875%, 9/15/11-8/28/12    1,543,987 
        iPayment, Inc.,     
CCC+    1,0152      9.75%, 5/15/14    1,020,075 
NR    1,6002      11.625%, 7/15/14    1,584,000 
B-    1,745    K&F Acquisition, Inc., 7.75%, 11/15/14    1,718,825 
B2    1,6552   Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)    1,592,938 
B+    2,5502   Rainbow National Services LLC, 10.375%, 9/01/14    2,824,125 
Caa1    2,130    Standard Aero Holdings, Inc., 8.25%, 9/01/14    1,879,725 
B-    1103   Universal City Florida Holding Co. I/II, 7.96%, 5/01/10    112,750 
B-    2,500    Visant Corp., 7.625%, 10/01/12    2,425,000 
Aa3    110    Western Financial Bank, 9.625%, 5/15/12    121,404 
        Total Financial Institutions    17,908,366 
        Health Care—6.4%     
B    1,1152   Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)    1,073,188 
        Healthsouth Corp.,     
B3    2,4502      10.75%, 6/15/16    2,387,892 
B3    9652 ,3    11.418%, 6/15/14    950,525 
B-    900    Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11    933,750 
B-    330    Select Medical Corp., 7.625%, 2/01/15    285,450 
B    670    Tenet Healthcare Corp., 6.875%, 11/15/31    534,325 
B-    1,190    Universal Hospital Services, Inc., 10.125%, 11/01/11    1,234,625 
B-    1,500    VWR Intl., Inc., 8.00%, 4/15/14    1,456,875 
        Total Health Care    8,856,630 
        Industrials—7.8%     
B    1,000    Blount, Inc., 8.875%, 8/01/12    997,500 
B+    1,000    H&E Equipment Services LLC/H&E Finance Corp., 11.125%, 6/15/12    1,104,290 
B-    575    NationsRent Cos., Inc., 9.50%, 5/01/15    610,938 
CCC+    200    Polypore, Inc., 8.75%, 5/15/12    190,000 
BB-    1,910    Rent-A-Center, Inc., 7.50%, 5/01/10    1,895,675 
BB    772    Service Corp. Intl., 7.70%, 4/15/09    775,860 
B3    1,7202   Sunstate Equipment Co. LLC, 10.50%, 4/01/13    1,771,600 
B+    175    Terex Corp., 7.375%, 1/15/14    172,375 
CCC+    610    Trimas Corp., 9.875%, 6/15/12    555,100 

See Notes to Financial Statements.

20


BlackRock High Income Shares (HIS) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Industrials—(cont’d)     
        United Rentals NA, Inc.,     
B    $     1,900       7.00%, 2/15/14    $     1,738,500 
B       1,050       7.75%, 11/15/13    997,500 
        Total Industrials    10,809,338 
        Media—16.9%     
B-           9802   Affinion Group, Inc., 10.125%, 10/15/13    982,450 
CCC           565    American Media Operations, Inc., 10.25%, 5/01/09    528,275 
B+           7503   Cablevision Systems Corp., 8.716%, 4/01/09    795,000 
        Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,     
Caa1       2,940       10.25%, 9/15/10    2,947,350 
Caa1           5652      10.25%, 9/15/10    565,000 
B           5002   Charter Communications Operating/Charter Communications Operating Capital, 8.375%, 4/30/14    500,625 
B3           7152   CMP Susquehanna Corp., 9.875%, 5/15/14    664,950 
BB           500    Dex Media East LLC/Dex Media East Finance Co., 9.875%, 11/15/09    528,750 
B       1,088    Dex Media West LLC/Dex Media Finance Co., 9.875%, 8/15/13    1,179,120 
B       1,000    Echostar Communications Corp., 5.75%, 5/15/08    980,000 
        Echostar DBS Corp.,     
BB-           3252      7.125%, 2/01/16    310,375 
BB-           3653      8.758%, 10/01/08    370,475 
B2           350    Emmis Operating Co., 6.875%, 5/15/12    345,625 
B           250    General Cable Corp., 9.50%, 11/15/10    268,125 
CCC+           410    Houghton Mifflin Co., 9.875%, 2/01/13    426,400 
B1           590    LIN Television Corp., 6.50%, 5/15/13    538,375 
B           465    Medianews Group, Inc., 6.875%, 10/01/13    426,056 
B2           4952   Network Communications, Inc., 10.75%, 12/01/13    487,575 
B3           770    Nexstar Finance, Inc., 7.00%, 1/15/14    700,700 
B2           5752 ,3 Paxson Communications Corp., 8.318%, 1/15/12    579,313 
        Primedia, Inc.,     
B2       1,740       8.00%, 5/15/13    1,566,000 
B2           9403      9.165%, 5/15/10    961,150 
B       2,6352   RH Donnelley Corp., 8.875%, 1/15/16    2,592,181 
BB+           410    Scholastic Corp., 5.00%, 4/15/13    352,305 
B           225    Sinclair Broadcast Group, Inc., 4.875%, 7/15/18    198,441 
Caa1           280    Sirius Satellite Radio, Inc., 9.625%, 8/01/13    263,900 
CCC+           1752   Unity Media GmbH, 10.375%, 2/15/15 (Germany)    173,250 
        Vertis, Inc.,     
B3       1,020       9.75%, 4/01/09    1,037,850 
CCC           665       10.875%, 6/15/09    653,363 
Caa3           2502      13.50%, 12/07/09    203,125 
Caa2       1,550    Young Broadcasting, Inc., 10.00%, 3/01/11    1,371,750 
        Total Media    23,497,854 
        Technology—7.9%     
        Amkor Technology, Inc.,     
CCC           160       5.00%, 3/15/07    157,713 
CCC+       1,270       9.25%, 6/01/16    1,203,325 
B+       1,235    Celestica, Inc., 7.625%, 7/01/13 (Canada)    1,197,950 
BB+           500    Fisher Scientific Intl., Inc., 3.25%, 3/01/24    556,250 
B+           2002   Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)    212,750 
        MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co. (Luxembourg),     
Ba3    853      7.741%, 12/15/11    80,750 
B2           490       8.00%, 12/15/14    406,700 
B2           4702   Sensata Technologies BV, 8.00%, 5/01/14 (Netherlands)    457,075 
CCC+           5302   SS&C Technologies, Inc., 11.75%, 12/01/13    548,550 
BB           900    STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)    875,250 
        Sungard Data Systems, Inc.,     
B-           6902 ,3    8.525%, 8/15/13    727,950 
B-           2352      9.125%, 8/15/13    245,575 
B-       1,5202      10.25%, 8/15/15    1,577,000 
B           865    Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12    880,137 
B-           4402   UGS Capital Corp. II, 10.375%, 6/01/11    434,500 
B-           890    UGS Corp., 10.00%, 6/01/12    958,975 

See Notes to Financial Statements.

21


BlackRock High Income Shares (HIS) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Technology—(cont’d)     
BB+    $      500    Xerox Corp., 7.625%, 6/15/13    $        503,750 
        Total Technology    11,024,200 
        Telecommunications—17.6%     
A-    7503   Airgate PCS, Inc., 6.891%, 10/15/11    766,875 
BB-    1,000    American Tower Corp., 7.125%, 10/15/12    997,500 
B+    645    Centennial Communications Corp., 8.125%, 2/01/14    620,813 
BB-    2,085    Cincinnati Bell, Inc., 7.25%, 7/15/13    2,048,512 
B3    1703   Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13    172,975 
B+    500    Insight Midwest LP/Insight Capital, 10.50%, 11/01/10    521,250 
        Intelsat Ltd. (Bermuda),     
BB-    855       8.875%, 1/15/15    861,413 
BB-    4202      9.25%, 6/15/16    435,225 
BB-    8953      9.609%, 1/15/12    906,187 
B    1,0002 ,3    11.64%, 6/15/13    1,020,000 
        Lucent Technologies, Inc.,     
B1    965       6.45%, 3/15/29    820,250 
B1    2,200       6.50%, 1/15/28    1,842,500 
B+    1,9802   Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)    2,034,450 
B-    150    Nortel Networks Corp., 6.875%, 9/01/23 (Canada)    120,000 
B-    8802 ,3 Nortel Networks Ltd., 9.73%, 7/15/11 (Canada)    895,400 
        PanAmSat Corp.,     
B    1,517       9.00%, 8/15/14    1,547,340 
B    7002      9.00%, 6/15/16    703,500 
NR    3,0004 ,5 Poland Telecom Finance BV, 14.00%, 12/01/07 (Netherlands)     
B+    230    Qwest Capital Funding, Inc., 7.00%, 8/03/09    225,400 
        Qwest Corp.,     
BB+    8503      7.741%, 6/15/13    905,250 
BB+    1,440       9.125%, 3/15/12    1,530,000 
BB-    615    Rogers Wireless, Inc., 8.00%, 12/15/12 (Canada)    631,913 
B    1,000    Rural Cellular Corp., 8.25%, 3/15/12    1,026,250 
B+    1,1002   Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)    1,156,375 
        Windstream Corp.,     
BB+    1,2302      8.125%, 8/01/13    1,254,600 
BB+    1,4202      8.625%, 8/01/16    1,453,796 
        Total Telecommunications    24,497,774 
        Transportation—2.8%     
BB-    280    American Airlines, Inc., 7.324%, 4/15/11    273,000 
B    680    CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)    655,350 
BB-    5852   Hertz Corp., 8.875%, 1/01/14    599,625 
B3    1,616    Horizon Lines LLC, 9.00%, 11/01/12    1,640,240 
BB+    660    Overseas Shipholding Group, Inc., 8.25%, 3/15/13    683,100 
        Total Transportation    3,851,315 
      Total Corporate Bonds    194,430,224 
             
    Shares         
        Common Stocks—0.0%     
    4956   Crown Castle Intl. Corp.    17,097 
    4,7376   Curative Health Services, Inc.    22,419 
    64,4675 ,6 Goss Holdings, Inc.    1 
        Total Common Stocks    39,517 
        Preferred Securities—1.8%     
    10,000    Crown Castle Intl. Corp., 6.25%    555,929 
    10,300    Emmis Communications Corp., 6.25%    408,112 
    5002   NRG Energy, Inc., 4.00%    641,562 
    5,000    Owens Illinois, Inc., 4.75%    175,000 
    30,000    Smurfit-Stone Container Corp., 7.00%    667,500 
    60,000    Superior Essex Holding Corp., Ser. A, 9.50%    48,000 
        Total Preferred Securities    2,496,103 

See Notes to Financial Statements.

22


BlackRock High Income Shares (HIS) (continued)

  Shares    Description    Value 
      Warrant—0.0%     
  3,7002 ,5,6 Pliant Corp., expires 6/01/10    $                    — 
  Total Long-Term Investments (cost $203,590,563)    196,965,844 
         
  Principal         
  Amount         
(000)         
      SHORT-TERM INVESTMENT—6.3%     
      U.S. Government and Agency Zero Coupon Bond—6.3%     
  $8,8007   Federal Home Loan Bank Disc. Notes, 4.752%, 7/03/06 (cost $8,797,678)    8,797,678 
      Total investments—147.7% (cost $212,388,2418)    $205,763,522 
      Liabilities in excess of other assets—(47.7)%    (66,446,048) 
      Net Assets—100%    $139,317,474 

   

1 Using the higher of S&P, Moody’s or Fitch rating.

2Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act,

to qualified institutional buyers. As of June 30, 2006, the Trust held 36.7% of its net assets, with a current market value of $51,168,239, in securities restricted as to resale.

3Variable rate security. Rate shown is interest rate as of June 30, 2006.

4 Issuer is in default and/or bankruptcy.

5Security is fair valued.

6Non-income producing security.

7Rate shown is the yield to maturity as of June 30, 2006.

8Cost for Federal income tax purposes is $212,937,438. The net unrealized depreciation on a tax basis is $7,173,916, consisting of $1,983,944 gross

unrealized appreciation and $9,157,860 gross unrealized depreciation.
 

A category in the Corporate Bonds and Preferred Securities sections may contain multiple industries as defined by the SEC’s Standard Industry Codes.

See Notes to Financial Statements.

23


PORTFOLIO OF INVESTMENTS (unaudited)

JUNE 30, 2006

BlackRock Preferred Opportunity Trust (BPP)

Rating1    Shares    Description    Value 
        LONG-TERM INVESTMENTS—145.7%     
        Preferred Securities—61.6%     
        Building & Development—0.1%     
Ba3    25,000    Hovnanian Enterprises, Inc., 7.625%    $      560,000 
        Consumer Products—0.5%     
BBB-    20,0002   Dairy Farmers of America, Inc., 7.875%    1,928,750 
        Energy—4.1%     
BB+    5,000    Devon Energy Corp., Ser. A, 6.49%    501,719 
B-    115,000    Hanover Compressor Capital Trust, 7.25%    6,123,405 
Baa3    275,000    Nexen, Inc., 7.35%    6,883,250 
BBB    180,000    PPL Electric Utilities Corp., 6.25%    4,331,250 
        Total Energy    17,839,624 
        Financial Institutions—42.2%     
A3    6002   ABN Amro NA, Inc., 6.46%    606,375 
Baa2    300,000    ACE Ltd., Ser. C, 7.80%    7,790,640 
BBB-    242,414    Arch Capital Group Ltd., 8.00%    6,167,012 
A2    30,0002   Banesto Holdings Ltd., Ser. A, 10.50%    900,000 
A    100,000    Bear Stearns Co., Inc., Ser. E, 6.15%    4,984,380 
BB    60,000    Chevy Chase Preferred Capital Corp., Ser. A, 10.375%    3,187,500 
        CIT Group, Inc.,     
A-    80,000       6.35%    1,960,000 
A3    23,600       (CORTS), 6.75%    576,548 
AA    40,000    Citigroup Capital X, 6.10%    904,800 
AA    50,000    Citigroup Capital XI, 6.00%    1,112,500 
BB    80,000    Colonial Capital Trust IV, 7.875%    2,004,800 
        Credit Suisse First Boston (SATURNS),     
AA-    11,100       6.25%    265,290 
AA-    12,300       7.00%    302,504 
Baa3    300,000    Endurance Specialty Holdings Ltd., 7.75%    7,233,000 
        Everest RE Capital Trust,     
A-    72,500       7.85%    1,841,957 
A-    30,000       Ser. B, 6.20%    634,800 
AA    15,200    Financial Security Assurance Holdings Ltd., 5.60%    324,672 
        First Republic Bank,     
BBB-    185,000       6.25%    4,382,187 
BBB-    277,200       6.70%    6,973,326 
BBB-    120,000    First Republic Preferred Capital Corp., 7.25%    2,896,800 
Aa3    85,000    Fleet Capital Trust VII, 7.20%    2,118,200 
Aa3    26,100    Fleet Capital Trust VIII, 7.20%    656,415 
        Goldman Sachs Group, Inc.,     
Aa3    102,900       (SATURNS), 6.00%    2,299,177 
A+    200,000       Ser. B, 6.20%    4,940,000 
AA-    200,000    HSBC Holdings PLC, 6.20% (United Kingdom)    4,620,000 
AA-    260,000    HSBC Bank, Inc., 6.50%    6,404,629 
A    76,700    ING Groep NV, 7.05%    1,929,488 
A1    80,000    J.P. Morgan Chase Capital XII, 6.25%    1,825,000 
A3    117,200    KeyCorp Capital V, 5.875%    2,512,475 
A3    100,000    Kraft Foods, Inc. (CORTS), 5.875%    2,124,000 
A    113,400    Lehman Brothers Holdings Capital Trust III, Ser. K, 6.375%    2,608,200 
A    90,000    Lehman Brothers Holdings Capital Trust IV, Ser. L, 6.375%    2,078,100 
A    31,100    Lehman Brothers Holdings, Inc., Ser. D, 5.67%    1,425,742 
A+    20,000    Merrill Lynch Preferred Capital Trust III, 7.00%    493,750 
A+    86,900    Merrill Lynch Preferred Capital Trust V, 7.28%    2,205,522 
A-    625,000    MetLife, Inc., Ser. B, 6.50%    15,393,750 
A+    187,000    Morgan Stanley Capital Trust III, 6.25%    4,222,460 
        Morgan Stanley Group, Inc.,     
A+    300,0003      Ser. A, 6.18%    7,554,000 
Aa3    101,000       (PPLUS), 7.05%    2,523,008 
BBB    7,200    News Holdings Ltd. (CORTS), 8.125%    181,584 

See Notes to Financial Statements.

24


BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating1    Shares    Description    Value 
        Financial Institutions—(cont’d)     
A    209,400    PartnerRE Ltd., Ser. C, 6.75%    $       4,992,892 
BBB    79,385    Phoenix Cos., Inc., 7.45%    1,953,665 
BBB+    18,400    PLC Capital Trust IV, 7.25%    452,526 
A-    93,9753   Principal Financial Group, Inc., Ser. B, 6.518%    2,499,735 
A+    82,000    Prudential PLC, 6.50%    1,983,580 
        RenaissanceRE Holdings Ltd. (Bermuda),     
BBB    271,725       Ser. B, 7.30%    6,640,280 
BBB    100,000       Ser. C, 6.08%    2,186,000 
BBB-    30    Roslyn Real Estate Asset Corp., Ser. C, 8.95%    3,078,750 
AA-    375,000    Royal Bank of Scotland Group PLC ADR, Ser. N, 6.35%    8,868,750 
Baa2    24    Safeco Capital Trust (SATURNS), 8.25%    594,751 
        Safeco Corp. (CORTS),     
Baa2    4,100       8.072%    106,600 
Baa2    2,000       8.375%    52,700 
Baa2    29,200       8.75%    859,064 
A    5,000    SLM Corp., Ser. A, 6.97%    267,500 
A-    103,439    Structured Repackaged Asset-Backed Trust Securities, 6.50%    2,333,584 
A    602   Union Planters Preferred Funding Corp., 7.75%    6,328,125 
Aa3    150,000    USB Capital VII, 5.875%    3,232,500 
BBB-    11,100    Valero Energy Corp. (PPLUS), 7.25%    279,165 
A2    404,400    Wachovia Preferred Funding Corp., Ser. A, 7.25%    10,640,775 
Baa1    5,200    Washington Mutual, Inc. (CORTS), 7.65%    130,975 
Baa2    2,0002 ,3 Zurich RegCaPS Funding Trust, 6.58%    2,015,000 
        Total Financial Institutions    182,661,508 
        Media—2.4%     
BBB+    253,100    AOL Time Warner, Inc. (CABCO), Ser. A-1, 7.625%    6,390,775 
BBB    110,0003   Comcast Corp., 2.00%    3,964,257 
        Total Media    10,355,032 
        Real Estate—12.2%     
        BRE Properties, Inc.,     
BBB-    225,000       Ser. C, 6.75%    5,247,000 
BBB-    80,000       Ser. D, 6.75%    1,867,504 
BBB-    238,888    CarrAmerica Realty Corp., Ser. E, 7.50%    6,017,589 
BBB-    120,000    Developers Diversified Realty Corp., 7.375%    2,955,000 
        Duke Realty Corp.,     
BBB    90,000       Ser. J, 6.625%    2,103,750 
BBB    160,800       Ser. K, 6.50%    3,693,383 
BBB    100,000       Ser. M, 6.95%    2,455,000 
BBB+    172,000    Kimco Realty Corp., Ser. F, 6.65%    4,111,883 
        Mills Corp.,     
NR    150,000       Ser. B, 9.00%    3,427,500 
NR    40,000       Ser. G, 7.875%    900,000 
BBB+    255,200    NB Capital Corp., 8.35%    6,699,000 
BBB    75,000    Regency Centers Corp., 6.70%    1,760,160 
Aa3    302   Sun Trust Real Estate Investment Corp., 9.00%    3,723,000 
A-    320,000    Weingarten Realty Investors, Ser. D, 6.75%    7,846,400 
        Total Real Estate    52,807,169 
        Technology—0.1%     
NR    776,546    Superior Essex Holding Corp., Ser. A, 9.50%    621,237 
      Total Preferred Securities    266,773,320 
             
    Principal         
    Amount         
    (000)         
        Trust Preferred Securities—26.2%     
        Energy—1.6%     
BB+    $     3,000    HL&P Capital Trust II, 8.257%, 2/01/37    3,045,000 
BB+    4,655    KN Capital Trust III, 7.63%, 4/15/28    3,896,440 
        Total Energy    6,941,440 

See Notes to Financial Statements.

25


BlackRock Preferred Opportunity Trust (BPP) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Financial Institutions—20.3%     
BB+    $     4,500    AFC Capital Trust I, 8.207%, 2/03/27    $     4,546,029 
NR    9,0002   AgFirst Farm Credit Bank, 7.30%, 10/14/49    8,973,513 
A3    9,774    AXA SA, 7.10%, 5/29/49 (France)    9,674,068 
A+    3,557    BNP Paribas Capital Trust V, 7.20%, 12/31/49    3,557,711 
BBB-    1,100    Colonial Capital Trust II, 8.92%, 1/15/27    1,160,409 
A1    3,000    Credit Agricole Preferred Fund Trust II, 7.00%, 8/29/49    2,928,900 
A+    4,5002 ,3 Deutsche Bank Capital Funding Trust I, 7.872%, 12/29/49    4,718,160 
A+    15,0002 ,3 Deutsche Bank Capital Funding Trust VII, 5.628%, 1/19/49    13,834,455 
A-    8,0002   Dresdner Funding Trust I, 8.151%, 6/30/31    9,126,852 
Baa2    1,100    FCB/NC Capital Trust I, 8.05%, 3/01/28    1,151,846 
BBB+    10,0002 ,3 Mangrove Bay Pass-Through Trust, 6.102%, 7/15/33    9,534,700 
BB+    3,145    Markel Capital Trust I, 8.71%, 1/01/46    3,285,794 
NR    2,000    NBP Capital Trust III, 7.375%, 10/29/49    2,005,144 
A+    7,5002   Sun Life of Canada U.S. Capital Trust I, 8.526%, 5/29/49    7,942,133 
BB+    5,0002   Webster Capital Trust I, 9.36%, 1/29/27    5,296,359 
        Total Financial Institutions    87,736,073 
        Real Estate—2.6%     
Baa2    8,1802   Sovereign Real Estate Investment Corp., 12.00%, 8/29/49    11,247,500 
        Transportation—1.7%     
BBB    7,6603   BNSF Funding Trust I, 6.613%, 12/15/55    7,195,390 
        Total Trust Preferred Securities    113,120,403 
        Corporate Bonds—57.9%     
        Aerospace & Defense—0.4%     
B    130    Argo-Tech Corp., 9.25%, 6/01/11    133,900 
B    1,615    DI Finance/DynCorp. Intl., 9.50%, 2/15/13    1,679,600 
        Total Aerospace & Defense    1,813,500 
        Automotive—2.6%     
        Autonation, Inc.,     
BB+    1902 ,3    7.045%, 4/15/13    191,900 
BB+    1902      7.00%, 4/15/14    188,100 
BB-    302 ,3 Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.576%, 5/15/14    29,850 
B    80    Lear Corp., 8.11%, 5/15/09    77,600 
CCC+    250    Metaldyne Corp., 11.00%, 11/01/13    241,250 
NR    8,000    Porsche Intl. Financing, 7.20%, 2/28/49 (Ireland)    7,440,800 
B-    2,850    Rexnord Corp., 10.125%, 12/15/12    3,152,812 
        Total Automotive    11,322,312 
        Basic Materials—1.5%     
B+    70    Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)    63,700 
B+    940    AK Steel Corp., 7.75%, 6/15/12    925,900 
B    1002 ,3 BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.099%, 7/15/10    102,000 
BB+    30    Chemtura Corp., 6.875%, 6/01/16    28,988 
B+    80    Domtar, Inc., 7.125%, 8/15/15 (Canada)    69,600 
B+    200    Donohue Forest Products, 7.625%, 5/15/07 (Canada)    202,000 
B2    2203   Huntsman LLC, 12.318%, 7/15/11    229,350 
B2    1,1802   Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)    1,112,150 
        Lyondell Chemical Co.,     
BB+    2,235       11.125%, 7/15/12    2,430,562 
BB+    465       Ser. A, 9.625%, 5/01/07    474,300 
B3    300    NewPage Corp., 10.00%, 5/01/12    310,500 
BB    4703   Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)    470,000 
        Total Basic Materials    6,419,050 
        Building & Development—0.3%     
B2    2602   Compression Polymers Corp., 10.50%, 7/01/13    263,900 
B    300    ERICO Intl. Corp., 8.875%, 3/01/12    306,750 
B-    695    Goodman Global Holding Co., Inc., 7.875%, 12/15/12    672,412 
B    170    North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)    179,350 
        Total Building & Development    1,422,412 

See Notes to Financial Statements.

26


BlackRock Preferred Opportunity Trust (BPP) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Consumer Products—0.7%     
B3    $     115    ALH Finance LLC, 8.50%, 1/15/13    $         110,831 
B-    145    Finlay Fine Jewelry Corp., 8.375%, 6/01/12    125,787 
B    110    Gold Kist, Inc., 10.25%, 3/15/14    114,950 
B-    1402   Knowledge Learning Corp., Inc., 7.75%, 2/01/15    128,100 
B-    1,260    Lazydays RV Center, Inc., 11.75%, 5/15/12    1,190,700 
B    4603   Levi Strauss & Co., 7.73%, 4/01/12    466,900 
BB-    2502   Quebecor World, Inc., 8.75%, 3/15/16 (Canada)    227,332 
BB-    300    Quiksilver, Inc., 6.875%, 4/15/15    276,750 
B-    3252   Rite Aid Corp., 6.125%, 12/15/08    316,469 
        Total Consumer Products    2,957,819 
        Containers & Packaging—0.2%     
B1    3852   Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15    377,300 
B-    902   Packaging Dynamics Finance Corp., 10.00%, 5/01/16    90,000 
B+    330    Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11    339,488 
        Total Containers & Packaging    806,788 
        Ecological Services & Equipment—0.1%     
BB-    290    Allied Waste NA, Inc., 5.75%, 2/15/11    269,700 
        Energy—2.9%     
BB    3,000    AES Corp., 8.875%, 2/15/11    3,150,000 
B2    235    Aquila Finance Corp., 7.75%, 6/15/11 (Canada)    243,225 
B    2202   Chaparral Energy, Inc., 8.50%, 12/01/15    218,350 
BB    30    Chesapeake Energy Corp., 6.875%, 11/15/20    27,750 
BB-    60    ChipPAC, Inc., 2.50%, 6/01/08    58,780 
BB-    85    CMS Energy Corp., 8.50%, 4/15/11    88,612 
BB-    210    Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)    205,275 
B    350    Compton Petroleum Finance Corp., 7.625%, 12/01/13    329,875 
B2    710    Dresser, Inc., 9.375%, 4/15/11    720,650 
B    200    Dynegy Danskammer LLC, 7.27%, 11/08/10    200,000 
B+    2252   Edison Mission Energy, 7.50%, 6/15/13    220,500 
Ba1    100    Grant Prideco, Inc., 6.125%, 8/15/15    92,000 
B    2802   Hilcorp Energy I LP/Hilcorp Finance Corp., 7.75%, 11/01/15    264,600 
B+    18    Midwest Generation LLC, 8.56%, 1/02/16    18,734 
        Mirant Americas Generation LLC,     
B    55       8.30%, 5/01/11    54,313 
B    40       9.125%, 5/01/31    39,000 
B-    2,950    Orion Power Holdings, Inc., 12.00%, 5/01/10    3,348,250 
        Reliant Energy, Inc.,     
BB-    190       6.75%, 12/15/14    175,275 
BB-    50       9.25%, 7/15/10    50,000 
B-    4202   Targa Resources, Inc., 8.50%, 11/01/13    405,300 
B2    55    Whiting Petroleum Corp., 7.00%, 2/01/14    51,975 
        Williams Cos., Inc.,     
BB+    505       8.75%, 3/15/32    552,975 
BB+    2,000       7.125%, 9/01/11    2,000,000 
        Total Energy    12,515,439 
        Entertainment & Leisure—0.2%     
B3    4352   Greektown Holdings LLC, 10.75%, 12/01/13    457,294 
B    1802   Pokagon Gaming Authority, 10.375%, 6/15/14    186,075 
B    130    Poster Financial Group, Inc., 8.75%, 12/01/11    134,875 
B+    130 2   San Pasqual Casino, 8.00%, 9/15/13    130,325 
B+    40    Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14    38,050 
        Total Entertainment & Leisure    946,619 
        Financial Institutions—42.8%     
AA-    9,6052 ,4 American General Institute Capital, 7.57%, 12/01/45    10,696,102 
BB    415    American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13    398,400 
BBB+    4,0003   Ameriprise Financial, Inc., 7.518%, 6/01/66    4,014,787 
Aa3    5,000    BAC Capital Trust V, 5.625%, 3/08/35    4,316,940 

See Notes to Financial Statements.

27


BlackRock Preferred Opportunity Trust (BPP) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Financial Institutions—(cont’d)     
        Barclays Bank PLC (United Kingdom),     
NR    $      5,000       6.278%, 12/29/49    $       4,365,125 
AA    10,0002 ,3    7.375%, 6/29/49    10,514,200 
B    190    BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)    204,250 
BB    920    Crum & Forster Holdings Corp., 10.375%, 6/15/13    936,100 
        E*Trade Financial Corp.,     
Ba2    125       7.375%, 9/15/13    125,000 
Ba2    170       7.875%, 12/01/15    174,250 
BB    4,455    Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)    3,920,400 
BBB    11,500    First Midwest Capital Trust I, 6.95%, 12/01/33    11,320,496 
BB    125    Ford Motor Credit Co., 7.25%, 10/25/11    110,881 
BB    580    General Motors Acceptance Corp., 6.875%, 8/28/12    552,066 
AA-    10,0002 ,3 HBOS PLC, 5.92%, 9/29/49 (United Kingdom)    9,054,880 
AA-    7,000    HSBC Bank NA, 5.875%, 11/01/34    6,342,021 
A1    5,000    J.P. Morgan Chase Capital XVII, 5.85%, 8/01/35    4,411,034 
BBB-    9,000    Kingsway America, Inc., 7.50%, 2/01/14    8,926,535 
A-    7,8003   Lincoln National Corp., 7.00%, 5/17/66    7,737,581 
A+    7,399    Lloyds Bank Ltd., 6.90%, 10/10/49 (United Kingdom)    7,232,523 
BBB    8,2163   MUFG Capital Finance 1 Ltd., 6.346%, 7/29/49 (Cayman Islands)    7,925,071 
B2    5402   Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)    519,750 
A    6,000    Prudential PLC, 6.50%, 6/29/49 (United Kingdom)    5,513,400 
AA    10,0002 ,3 Rabobank Capital Funding II, 5.26%, 12/31/49    9,389,530 
AA-    4,0003   RBS Capital Trust I, 5.512%, 9/29/49    3,715,616 
A-    10,0003   Reinsurance Group of America, Inc., 6.75%, 12/15/65    9,192,676 
A3    4,000    Resparcs Funding Ltd., 8.00%, 12/30/49 (Hong Kong)    4,064,937 
        Skandinaviska Enskilda Banken AB (Sweden),     
A    7,1852 ,3    4.958%, 3/29/49    6,401,260 
A    5,0002 ,3    5.471%, 3/29/49    4,553,985 
Baa2    2,000    Sovereign Capital Trust, 9.00%, 4/01/27    2,110,422 
Caa1    30    Standard Aero Holding, Inc., 8.25%, 9/01/14    26,475 
NR    3,7355   Structured Asset Receivable Trust, 1.649%, 1/21/10    3,734,512 
A2    10,0002 ,3 Sumitomo Mitsui Banking Corp., 5.625%, 7/29/49 (Japan)    9,222,200 
AA    10,0003   UBS Preferred Funding Trust I, 8.622%, 10/29/49    10,939,190 
B-    603   Universal City Florida Holding Co. I/II, 7.493%, 5/01/10    61,500 
A+    5,0003   Wachovia Capital Trust III, 5.80%, 3/15/42    4,871,490 
A2    3,0002 ,3 Westpac Capital Trust IV, 5.256%, 12/29/49    2,684,568 
Baa2    5,0002 ,3 ZFS Finance Trust I, 6.479%, 12/15/65    5,002,897 
        Total Financial Institutions    185,283,050 
        Health Care—0.2%     
B    2202   Angiotech Pharmaceutical, Inc., 7.75%, 4/01/14 (Canada)    211,750 
B-    160    Select Medical Corp., 7.625%, 2/01/15    138,400 
B-    520    Universal Hospital Services, Inc., 10.125%, 11/01/11    539,500 
        Total Health Care    889,650 
        Industrials—0.3%     
CCC+    1,205    Trimas Corp., 9.875%, 6/15/12    1,096,550 
B    225    United Rentals NA, Inc., 7.00%, 2/15/14    205,875 
        Total Industrials    1,302,425 
        Media—1.5%     
B-    4752   Affinion Group, Inc., 10.125%, 10/15/13    476,188 
B+    2303   Cablevision Systems Corp., 8.716%, 4/01/09    243,800 
B    1,950    Dex Media West LLC/Dex Media Finance Co., 9.875%, 8/15/13    2,113,312 
        Echostar DBS Corp.,     
BB-    200       5.75%, 10/01/08    195,500 
BB-    752      7.125%, 2/01/16    71,625 
B2    30    Emmis Operating Co., 6.875%, 5/15/12    29,625 
B1    200    LIN Television Corp., 6.50%, 5/15/13    182,500 
B    220    Medianews Group, Inc., 6.875%, 10/01/13    201,575 
B2    2202   Network Communication, Inc., 10.75%, 12/01/13    216,700 
B3    330    Nexstar Finance, Inc., 7.00%, 1/15/14    300,300 

See Notes to Financial Statements.

28


BlackRock Preferred Opportunity Trust (BPP) (continued)

    Principal         
    Amount         
Rating1    (000)    Description    Value 
        Media—(cont’d)     
B2    $     3502 ,3 Paxson Communications Corp., 8.757%, 1/15/12    $         352,625 
        Primedia, Inc.,     
B2           100       8.00%, 5/15/13    90,000 
B2           2803      9.165%, 5/15/10    286,300 
BBB+           719    TCI Communications, Inc., 7.875%, 2/15/26    765,344 
B3           650    Vertis, Inc., 9.75%, 4/01/09    661,375 
        Total Media    6,186,769 
        Real Estate—1.5%     
        Rouse Co.,     
BB+       5,000       3.625%, 3/15/09    4,635,489 
BB+       2,000       5.375%, 11/26/13    1,800,645 
        Total Real Estate    6,436,134 
        Technology—0.5%     
B+           210    Celestica, Inc., 7.625%, 7/01/13 (Canada)    203,700 
B+           1202   Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)    127,650 
        MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co. (Luxembourg),     
B2             20       8.00%, 12/15/14    16,600 
Ba3             553      8.579%, 12/15/11    52,250 
BB             60    STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)    58,350 
        Sungard Data Systems, Inc.,     
B-           3752 ,3    8.525%, 8/15/13    395,625 
B-           1152      9.125%, 8/15/13    120,175 
B-           3202      10.25%, 8/15/15    332,000 
B           500    Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12    508,750 
B-           110    UGS Corp., 10.00%, 6/01/12    118,525 
        Total Technology    1,933,625 
        Telecommunications—1.9%     
BB-           290    Cincinnati Bell, Inc., 7.25%, 7/15/13    284,925 
B3           1903   Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13    193,325 
        Intelsat Ltd. (Bermuda),     
BB-           230       8.625%, 1/15/15    231,725 
BB-           5002      9.25%, 6/15/16    518,125 
BB-           3653      9.609%, 1/15/12    369,563 
B           8352 ,3    11.64%, 6/15/13    851,700 
        Lucent Technologies, Inc.,     
B1             25       6.45%, 3/15/29    21,250 
B1           185       6.50%, 1/15/28    154,938 
B+           8452   Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)    868,237 
B-             80    Nortel Networks Corp., 6.875%, 9/01/23 (Canada)    64,000 
        PanAmSat Corp.,     
B           125       9.00%, 8/15/14    127,500 
B           4802      9.00%, 6/15/16    482,400 
        Qwest Corp.,     
BB+           4603      7.741%, 6/15/13    489,900 
BB+       1,845       7.875%, 9/01/11    1,868,062 
B+           4202   Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)    441,525 
        Windstream Corp.,     
BB+           6402      8.125%, 8/01/13    652,800 
BB+           7402      8.625%, 8/01/16    757,612 
        Total Telecommunications    8,377,587 
        Transportation—0.3%     
B             90    CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)    86,737 
BB-       1,2352   Hertz Corp., 8.875%, 1/01/14    1,265,875 
B3             32    Horizon Lines LLC, 9.00%, 11/01/12    32,480 
        Total Transportation    1,385,092 
        Total Corporate Bonds    250,267,971 
        Total Long-Term Investments (cost $645,792,348)    630,161,694 

See Notes to Financial Statements.

29


BlackRock Preferred Opportunity Trust (BPP) (continued)

  Principal         
  Amount         
  (000)    Description    Value 
      SHORT-TERM INVESTMENT—3.9%     
      U.S. Government and Agency Zero Coupon Bond—3.9%     
  $    16,9006   Federal Home Loan Bank Disc. Notes, 4.872%, 7/03/06 (cost $16,895,428)    $   16,895,428 
      Total investments before borrowed bonds and investments sold short (cost $662,687,7757)    647,057,122 
      BORROWED BONDS—10.2%     
  24,9398   U.S. Treasury Bonds, 4.60%, 7/05/06    24,939,219 
      U.S. Treasury Notes,     
  8,9228      4.45%, 7/05/06    8,922,250 
  10,0368      4.60%, 7/05/06    10,036,000 
      Total Borrowed Bonds (cost $43,897,469)    43,897,469 
      INVESTMENTS SOLD SHORT—(10.0)%     
  (24,125)   U.S. Treasury Bonds, 5.375%, 2/15/31    (24,528,339)
      U.S. Treasury Notes,     
  (10,400)      4.50%, 2/15/16    (9,893,000)
  (8,900)      5.125%, 5/15/16    (8,887,485)
      Total Investments Sold Short (proceeds $43,125,134)    (43,308,824)
      Total investments net of borrowed bonds and investments sold short—149.8%    $ 647,645,767 
      Other assets in excess of liabilities—1.3%    5,639,492 
      Preferred shares at redemption value, including dividends payable—(51.1)%    (220,853,207)
      Net Assets Applicable to Common Shareholders—100%    $ 432,432,052 


1Using the higher of S&P, Moody’s or Fitch rating.

2Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 38.7% of its net assets, with a current market value of $167,266,451, in securities restricted as to resale.

3Variable rate security. Rate shown is interest rate as of June 30, 2006.

4Security, or a portion thereof, pledged as collateral with a value of $2,799,763 on 328 short U.S. Treasury Bond futures contracts expiring September 2006. The notional value of such contracts on June 30, 2006 was $34,983,250, with an unrealized gain of $229,903.

5Illiquid security. As of June 30, 2006, the Trust held 0.9% of its net assets, with a current market value of $3,734,512 in these securities.

6Rate shown is the yield to maturity as of June 30, 2006.

7Cost for Federal income tax purposes is $662,894,460. The net unrealized depreciation on a tax basis is $15,837,338, consisting of $6,447,997 gross unrealized appreciation and $22,285,335 gross unrealized depreciation.

8The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.

 

A category in the Preferred Securities, Trust Preferred Securities and Corporate Bonds sections may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS 
ADR    American Depository Receipt    PPLUS    Preferred Plus 
CABCO    Corporate Asset Backed Corp.    SATURNS    Structured Asset Trust Unit Repackagings 
CORTS    Corporate Backed Trust Securities         

See Notes to Financial Statements.

30


STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
June 30, 2006 
 

  Global   High     Preferred  
  Floating Rate   Income     Opportunity  
  Income Trust   Shares        Trust  
  (BGT)   (HIS)    (BPP)  
Assets           
Investments at value1 $ 734,292,458     $ 205,763,522     $  647,057,122  
Investments in affiliates  31,148   4,774       68,823  
Cash  44,040   37,702       1,241,630  
Foreign currency at value2 2,311,128   768        
Receivable from investments sold  21,504,318   2,485,569       550,941  
Deposits with brokers as collateral for borrowed bonds          43,897,469  
Interest receivable  10,260,716   3,952,915       6,742,050  
Unrealized appreciation on interest rate swaps          9,268,241  
Other assets    36,055     26,449     22,960  
    768,479,863     212,271,699     708,849,236  
 
Liabilities           
Reverse repurchase agreement  31,221,000          
Payable for investments purchased  45,044,791   9,339,189       10,744,610  
Variation margin payable          256,250  
Loan payable    62,000,000        
Investments sold short at value3         43,308,824  
Interest payable  75,633   208,749       773,749  
Unrealized loss on foreign currency exchange contracts  622,421          
Dividends payable—common shares    1,118,179        
Investment advisory fee payable  328,877   124,616       354,815  
Deferred Trustees’ fees  31,148   4,774       68,823  
Payable to affiliates  43,492          
Other accrued expenses    187,305     158,718     56,906  
    77,554,667     72,954,225     55,563,977  
 
Preferred Shares at Redemption Value           
$0.001 par value per share and $25,000 liquidation value per share,           
   including dividends payable4   243,516,274         220,853,207  
 
Net Assets Applicable to Common Shareholders  $ 447,408,922   $ 139,317,474   $  432,432,052  
Composition of Net Assets Applicable to Common Shareholders:           
   Par value  $ 23,481   $     $  18,327  
   Paid-in capital in excess of par  444,771,968   402,537,649       434,050,370  
   Undistributed (distribution in excess of) net investment income  1,399,268   (1,130,959 )      (1,022,057 ) 
   Accumulated net realized gain (loss)  (57,959 )  (255,464,533 )      5,701,594  
   Net unrealized appreciation (depreciation)    1,272,164     (6,624,683 )    (6,316,182 ) 
Net assets applicable to common shareholders, June 30, 2006  $ 447,408,922   $ 139,317,474   $  432,432,052  
 
Net asset value per common share5 $ 19.05   $ 2.55   $ 23.60  
 
1 Investments at cost  $ 732,049,806     $ 212,388,241     $ 662,687,775  
2 Foreign currency at cost  2,300,083   732        
3 Proceeds received          43,125,134  
4 Preferred shares outstanding  9,738         8,832  
5 Common shares outstanding  23,481,021   54,545,365       18,327,056  

See Notes to Financial Statements.

31


STATEMENTS OF OPERATIONS (unaudited)
For the six months ended June 30, 2006
 

    Global       High        Preferred  
    Floating Rate       Income       Opportunity  
    Income Trust       Shares       Trust  
    (BGT)       (HIS)       (BPP)  
Investment Income           
   Interest income  $ 23,857,605     $ 8,575,491     $ 12,748,971  
   Dividend income          73,902       9,113,141  
   Income from affiliates    1,025       164       2,367  
         Total investment income    23,858,630       8,649,557       21,864,479  
Expenses           
   Investment advisory    2,639,826       760,054       2,155,326  
   Transfer agent    7,421       9,917       7,421  
   Custodian    211,617       34,991       69,553  
   Reports to shareholders    51,136       42,399       52,674  
   Directors/Trustees    22,134       10,046       22,203  
   Registration    8,201       16,032       8,201  
   Independent accountants    25,865       21,080       22,666  
   Legal    42,837       16,612       42,808  
   Insurance    23,305       7,087       22,819  
   Auction agent    320,445             286,412  
   Deferred Trustees’ fees    1,025       164       2,367  
   Miscellaneous    40,322       50,028       31,092  
         Total expenses excluding interest expense    3,394,134       968,410       2,723,542  
             Interest expense    380,999       1,607,925       61,077  
         Total expenses    3,775,133       2,576,335       2,784,619  
             Less fees waived by Advisor    (703,954 )             
             Less fees paid indirectly    (25,996 )      (5,231 )      (11,780 ) 
         Net expenses    3,045,183       2,571,104       2,772,839  
Net investment income    20,813,447       6,078,453       19,091,640  
Realized and Unrealized Gain (Loss)           
Net realized gain (loss) on:           
         Investments    (150,086 )      (987,272 )      1,126,201  
         Foreign currency    366,606       (108,959 )       
         Futures and swaps                1,608,374  
         Short sales                1,569,414  
    216,520       (1,096,231 )      4,303,989  
Net change in unrealized appreciation/depreciation on:           
         Investments    (2,595,606 )      (1,518,478 )      (27,998,525 ) 
         Foreign currency    (1,171,407 )      (35,854 )       
         Futures and swaps                9,620,582  
         Short sales                (92,078 ) 
    (3,767,013 )      (1,554,332 )      (18,470,021 ) 
Net loss    (3,550,493 )      (2,650,563 )      (14,166,032 ) 
 
Dividends from Net Investment Income to           
     Preferred Shareholders    (5,336,499 )            (4,939,342 ) 
 
Net Increase (Decrease) in Net Assets           
     Applicable to Common Shareholders           
     Resulting from Operations  $ 11,926,455     $ 3,427,890     $ (13,734 ) 

See Notes to Financial Statements.

32


STATEMENTS OF CASH FLOWS (unaudited)
For the six months ended June 30, 2006
 

    Global       High       Preferred  
Reconciliation of Net Increase (Decrease) in Net Assets    Floating Rate       Income       Opportunity  
Resulting from Operations to Net Cash    Income Trust       Shares       Trust  
Provided by (Used for) Operating Activities    (BGT)       (HIS)        (BPP)  
Net increase (decrease) in net assets resulting from operations  $ 11,926,455     $ 3,427,890     $ (13,734 ) 
Purchases of long-term investments    (279,098,282 )      (91,765,720 )      (386,348,040 ) 
Proceeds from sales of long-term investments    230,495,362       96,353,214       376,875,454  
Net proceeds (purchases) of short-term investments    24,665,656       (7,392,730 )      (2,584,615 ) 
Increase in deposits with brokers as collateral for borrowed bonds                (31,774,206 ) 
Amortization of premium and discount on investments    541,350       176,032       375,639  
Net realized loss (gain) on investments    150,086       987,272       (1,126,201 ) 
Decrease in unrealized appreciation/depreciation on investments    2,595,606       1,518,478       27,998,525  
Net effect of exchange rates on foreign currency    (366,606 )      108,959        
Increase in investments sold short                31,206,635  
Increase in unrealized appreciation on interest rate swaps                (7,905,714 ) 
Increase in investments in affiliates    (5,524 )      (1,893 )      (6,854 ) 
Increase in receivable for investments sold    (15,780,576 )      (2,485,569 )      (550,941 ) 
Decrease in unrealized gain on foreign currency exchange contracts    388,125       35,926        
Decrease in variation margin receivable                158,501  
Decrease (Increase) in interest receivable    (2,564,676 )      322,374       (927,362 ) 
Increase in other assets    (16,812 )      (20,470 )      (3,783 ) 
Increase in payable for investments purchased    9,820,172       9,339,189       10,744,610  
Increase in unrealized loss on foreign currency exchange contracts    415,252              
Increase in variation margin payable                256,250  
Increase in interest payable    75,633       14,036       652,241  
Increase (Decrease) in investment advisory fee payable    4,325       (6,349 )      (13,840 ) 
Increase in deferred Trustees’ fees    5,524       1,893       6,854  
Increase in payable to affiliates    6,147              
Increase (Decrease) in other accrued expenses    21,455       (76,101 )      (69,592 ) 
   Total adjustments    (28,647,783 )      7,108,541       16,963,561  
Net cash provided by (used for) operating activities  $ (16,721,328 )    $ 10,536,431     $ 16,949,827  
 
Decrease in Cash and Foreign Currency           
Net cash provided by (used for) operating activities  $ (16,721,328 )    $ 10,536,431     $ 16,949,827  
Cash provided by (used for) financing activities:           
   Capital contributions          136,555       521,174  
   Increase in reverse repurchase agreements    31,221,000              
   Decrease in loan payable          (4,000,000 )       
   Decrease in preferred shares at redemption value including           
       dividends payable    (20,992 )            (24,801 ) 
   Cash dividends paid to common shareholders    (16,436,714 )      (6,703,213 )      (18,316,299 ) 
Net cash provided by (used for) financing activities:    14,763,294       (10,566,658 )      (17,819,926 ) 
   Net decrease in cash and foreign currency    (1,958,034 )      (30,227 )      (870,099 ) 
   Cash and foreign currency at beginning of period    4,313,202       68,697       2,111,729  
   Cash and foreign currency at end of period  $ 2,355,168     $ 38,470     $ 1,241,630  

See Notes to Financial Statements.

33


STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2006 (unaudited) and the year ended December 31, 2005
 

  Global Floating Rate     High Income  
  Income Trust     Shares  
  (BGT)     (HIS)  
    2006       2005       2006       2005  
Increase (Decrease) in Net Assets Applicable               
     to Common Shareholders:               
Operations:               
   Net investment income  $ 20,813,447     $ 38,524,476     $ 6,078,453     $ 13,001,428  
   Net realized gain (loss)    216,520       (733,873 )      (1,096,231 )      (643,102 ) 
   Net change in unrealized depreciation    (3,767,013 )      (3,318,879 )      (1,554,332 )      (11,571,661 ) 
   Dividends and distributions to preferred shareholders from:               
         Net investment income    (5,336,499 )      (7,702,674 )             
         Net realized gains          (22,268 )            
Net increase (decrease) in net assets applicable to common               
   shareholders resulting from operations    11,926,455       26,746,782       3,427,890       786,665  
Dividends and Distributions to Common               
     Shareholders from:               
   Net investment income1   (13,736,397 )      (28,572,525 )      (6,704,279 )      (14,468,525 ) 
   Net realized gains          (164,417 )             
Total dividends and distributions    (13,736,397 )     (28,736,942 )     (6,704,279 )     (14,468,525 ) 
Capital Share Transactions:               
   Offering costs relating to preferred shares          81,708              
   Reinvestment of common dividends                136,555       840,842  
Total decrease    (1,809,942 )     (1,908,452 )     (3,139,834 )     (12,841,018 ) 
Net Assets Applicable to Common Shareholders               
Beginning of period    449,218,864       451,127,316       142,457,308       155,298,326  
End of period  $ 447,408,922     $ 449,218,864     $ 139,317,474     $ 142,457,308  
End of period undistributed (distribution in excess of) net               
   investment income  $ 1,399,268     $ (341,283 )   $ (1,130,959 )    $ (505,133 ) 


1

A portion of the dividend from net investment income for the six months ended June 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.

 

See Notes to Financial Statements.

34



 

Preferred
Opportunity Trust
(BPP)
  2006       2005  
 
 
 
$
19,091,640    
$
38,669,601  
  4,303,989       2,371,550  
  (18,470,021 )      (17,454,454 ) 
 
  (4,939,342 )      (4,681,820 ) 
        (2,471,709 ) 
 
  (13,734 )      16,433,168  
 
 
  (15,265,330 )      (31,788,280 ) 
        (11,272,655 ) 
  (15,265,330 )      (43,060,935 ) 
 
        8,740  
  521,174        
  (14,757,890 )      (26,619,027 ) 
 
  447,189,942       473,808,969  
$ 432,432,052     $ 447,189,942  
 
$ (1,022,057 )    $ 90,975  

35


FINANCIAL HIGHLIGHTS

BlackRock Global Floating Rate Income Trust (BGT)

    Six Months       For the Year     For the period  
    Ended       Ended     August 30, 20041  
    June 30, 2006       December 31,     through  
    (unaudited)       2005     December 31, 2004  
PER SHARE OPERATING PERFORMANCE:                 
Net asset value, beginning of period  $  19.13     $  19.21     $  19.10 2
Investment operations:                 
   Net investment income    0.88       1.64       0.33  
   Net realized and unrealized gain (loss)    (0.15 )      (0.17 )      0.35  
Dividends and distributions to preferred shareholders from:                 
   Net investment income    (0.23 )      (0.33 )      (0.04 ) 
   Net realized gains          3      
Net increase from investment operations    0.50       1.14       0.64  
Dividends and distributions to common shareholders from:                 
   Net investment income    (0.58 )      (1.22 )      (0.37 ) 
   Net realized gains          3      
Total dividends and distributions    (0.58 )      (1.22 )      (0.37 ) 
Capital charges with respect to issuance of:                 
   Common shares                (0.04 ) 
   Preferred shares                (0.12 ) 
Total capital charges                (0.16 ) 
Net asset value, end of period  $  19.05     $  19.13     $  19.21  
Market price, end of period  $  18.96     $  17.16     $  18.63  
TOTAL INVESTMENT RETURN4   14.76 %      (1.34 )%      (5.00 )% 
RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:5                
Total expenses    1.68 %6     1.56 %      1.26 %6
Net expenses    1.36 %6     1.23 %      0.97 %6
Net expenses excluding interest expense    1.19 %6     1.15 %      0.97 %6
Net investment income before preferred share dividends    9.29 %6     8.52 %      5.04 %6
Preferred share dividends    2.38 %6     1.71 %      0.62 %6
Net investment income available to common shareholders    6.91 %6     6.81 %      4.42 %6
 
SUPPLEMENTAL DATA:                 
Average net assets (000)  $  451,931     $  452,179     $  446,660  
Portfolio turnover    29 %      46 %      11 % 
Net assets applicable to common shareholders, end of period (000)  $  447,409     $  449,219     $  451,126  
Preferred shares outstanding (000)  $  243,450     $  243,450     $  243,450  
Reverse repurchase agreements outstanding, end of period (000)  $  31,221     $      $   
Reverse repurchase agreements average daily balance (000)  $  14,891     $  10,722     $  114  
Reverse repurchase agreements weighted average interest rate    5.16 %      3.27 %      2.24 % 
Asset coverage per preferred share, end of period  $  74,158     $  71,139     $  71,330  


1Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
2Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial offering price of $20.00 per share.
3Amounted to less than $0.01 per common share outstanding.
4 Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
5Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.
6Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

36


FINANCIAL HIGHLIGHTS

BlackRock High Income Shares (HIS)

  Six Months Ended                                
  June 30, 2006     Year Ended December 31,    
  (unaudited)     2005     20041     20031     20021     20011  
PER SHARE OPERATING                                   
   PERFORMANCE:                                   
Net asset value, beginning of period  $  2.61     $  2.87     $  2.86     $  2.42     $  3.05     $  3.88  
Investment operations:                                   
   Net investment income    0.11       0.24       0.28 2     0.32 2     0.36 2     0.55 2
   Net realized and unrealized gain (loss)    (0.05 )      (0.23 )      0.03       0.40       (0.62 )      (0.81 ) 
Net increase (decrease) from investment                                   
   operations    0.06       0.01       0.31       0.72       (0.26 )      (0.26 ) 
Dividends and distributions from:                                   
   Net investment income    (0.12 )3     (0.27 )      (0.30 )      (0.28 )      (0.29 )      (0.57 ) 
   Tax return of capital                            (0.08 )       
Total dividends and distributions    (0.12 )      (0.27 )      (0.30 )      (0.28 )      (0.37 )      (0.57 ) 
Net asset value, end of period  $  2.55     $  2.61     $  2.87     $  2.86     $  2.42     $  3.05  
Market value, end of period  $  2.64     $  2.33     $  2.90     $  2.87     $  2.32     $  3.36  
TOTAL INVESTMENT RETURN4    18.78 %      (11.28 )%      12.24 %      37.23 %      (21.23 )%      (6.85 )% 
 
RATIOS TO AVERAGE NET ASSETS:                                   
Total expenses    3.63 %5     3.04 %      2.23 %      2.21 %      2.53 %      3.43 % 
Net expenses    3.62 %5     3.04 %      2.23 %      2.21 %      2.53 %      3.43 % 
Net expenses excluding interest expense    1.36 %5     1.37 %      1.39 %      1.46 %