BLACKROCK FLOATING RATE INCOME TRUST

N-CSR 1 c40442_ncsr.htm

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, 2005 Date of reporting period: December 31, 2005

Item 1. Reports to Shareholders.

The Registrants annual report to shareholders is as follows:

FIXED INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS

BlackRock
Closed-End Funds
Annual Report
DECEMBER 31, 2005
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
Portfolios of Investments	5
Financial Statements
Statements of Assets and Liabilities	27
Statements of Operations	28
Statements of Cash Flows	29
Statements of Changes in Net Assets	30
Financial Highlights	32
Notes to Financial Statements	35
Report of Independent Registered
Public Accounting Firm	42
Directors/Trustees Information	43
Dividend Reinvestment Plans	46
Additional Information	46
Section 19 Notices	48

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

December 31, 2005

Dear Shareholder:

We are pleased to report that during the annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts audited financial statements and 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 December 31, 2005.

| Trust (Ticker) — BlackRock Global Floating
Rate Income Trust (BGT) | 8.04 % | $ 17.16 | NAV — $ 19.13 |
| --- | --- | --- | --- |
| BlackRock High Income
Shares (HIS) | 10.56 | 2.33 | 2.61 |
| BlackRock Preferred
Opportunity Trust (BPP) | 8.26 | 24.20 | 24.43 |

1 Yield is based on market price.

BlackRock, Inc. (BlackRock), a world leader in asset management, has a proven commitment to managing fixed income securities. As of December 31, 2005, BlackRock managed $301 billion in fixed income securities, including 20 open-end and 47 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the worlds largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock, Inc.

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.

TRUST SUMMARIES DECEMBER 31, 2005

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 12/31/05: | $ 17.16 |
| Net Asset
Value as of 12/31/05: | $ 19.13 |
| Yield on
Closing Market Price as of 12/31/05 ($17.16): 1 | 8.04 % |
| Current
Monthly Distribution per Share: 2 | $ 0.115 |
| Current
Annualized Distribution per Share: 2 | $ 1.380 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |

The table below summarizes the Trusts market price and NAV:

Market Price	12/31/05 — $ 17.16	12/31/04 — $ 18.63	(7.89	)%	High — $ 19.24	Low — $ 16.74
NAV	$ 19.13	$ 19.21	(0.52	)%	$ 19.48	$ 18.96

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

Portfolio Composition

| Composition — Foreign
Government Bonds | 20 % | 22 % |
| --- | --- | --- |
| Consumer
Products | 11 | 9 |
| Basic
Materials | 10 | 10 |
| Energy | 10 | 8 |
| Media | 10 | 13 |
| Health Care | 6 | 7 |
| Telecommunications | 6 | 5 |
| Entertainment
& Leisure | 5 | 6 |
| Conglomerates | 4 | 1 |
| Financial
Institutions | 3 | 3 |
| Real Estate | 3 | 3 |
| Technology | 3 | 2 |
| Automotive | 2 | 2 |
| Building
& Development | 2 | 2 |
| Containers
& Packaging | 2 | 3 |
| Aerospace
& Defense | 1 | 1 |
| Ecological
Services & Equipment | 1 | 1 |
| Industrials | 1 | 1 |
| Transportation | | 1 |

Corporate Credit Breakdown 3

| Credit
Rating — BBB/Baa | 19 % | 28 % |
| --- | --- | --- |
| BB/Ba | 54 | 41 |
| B | 22 | 29 |
| CCC/Caa | 5 | 2 |
| Not Rated | | |

3 Using the higher of Standard & Poors (S&P), Moodys Investors Service (Moodys) or Fitch Ratings (Fitch) rating. Corporate bonds represented approximately 20.5% and 18.1% of net assets on December 31, 2005 and December 31, 2004, respectively.

TRUST SUMMARIES DECEMBER 31, 2005

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 12/31/05: | $ 2.33 |
| Net Asset
Value as of 12/31/05: | $ 2.61 |
| Yield on
Closing Market Price as of 12/31/05 ($2.33): 1 | 10.56 % |
| Current
Monthly Distribution per Share: 2 | $ 0.0205 |
| Current
Annualized Distribution per Share: 2 | $ 0.2460 |

The table below summarizes the changes in the Trusts market price and NAV:

Market Price	12/31/05 — $ 2.33	12/31/04 — $ 2.90	(19.66	)%	High — $ 2.99	Low — $ 2.33
NAV	$ 2.61	$ 2.87	(9.06	)%	$ 2.87	$ 2.56

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

Corporate Portfolio Composition

Composition — Media	13 %	14 %
Energy	13	9
Basic
Materials	11	12
Telecommunications	10	5
Industrials	10	5
Financial
Institutions	9
Consumer
Products	7	20
Technology	5	1
Containers
& Packaging	4	4
Entertainment
& Leisure	4	13
Health Care	3	6
Aerospace
& Defense	3	4
Automotive	3	4
Building
& Development	2	2
Transportation	2
Ecological
Services & Equipment	1	1

Corporate Credit Breakdown 3

BBB/Baa	1
Ba/BB	23	21
B/B	61	71
CCC/Caa	14	8
Not Rated	1

3 Using the higher of S&P, Moodys or Fitch rating. Corporate bonds represented approximately 141.8% and 140.5% of net assets on December 31, 2005, and December 31, 2004, respectively.

TRUST SUMMARIES DECEMBER 31, 2005

BlackRock Preferred Opportunity Trust (BPP)

Trust Information

| Symbol on
New York Stock Exchange: | |
| --- | --- |
| Initial
Offering Date: | February 28, 2003 |
| Closing
Market Price as of 12/31/05: | $ 24.20 |
| Net Asset
Value as of 12/31/05: | $ 24.43 |
| Yield on
Closing Market Price as of 12/31/05 ($24.20): 1 | 8.26 % |
| Current
Monthly Distribution per Share: 2 | $ 0.166667 |
| Current
Annualized Distribution per Share: 2 | $ 2.000004 |

The table below summarizes the changes in the Trusts market price and NAV:

Market Price	12/31/05 — $ 24.20	12/31/04 — $ 25.39	(4.69	)%	High — $ 25.81	Low — $ 22.60
NAV	$ 24.43	$ 25.88	(5.60	)%	$ 26.30	$ 24.26

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

Portfolio Composition

| Composition — Financial
Institutions | 72 % | 71 % |
| --- | --- | --- |
| Real Estate | 12 | 12 |
| Energy | 6 | 7 |
| Consumer
Products | 3 | 2 |
| Media | 2 | 3 |
| Basic
Materials | 1 | 1 |
| Building
& Development | 1 | |
| Industrials | 1 | |
| Telecommunications | 1 | 1 |
| Automotive | 1 | 1 |
| Containers
& Packaging | | 1 |
| Other | | 1 |

Credit Breakdown 3

Credit Rating — AAA/Aaa	%	1 %
AA/Aa	13	20
A	39	33
BBB/Baa	29	27
BB/Ba	11	10
B	7	9
CCC/Caa	1

3 Using the higher of S&P, Moodys or Fitch rating.

PORTFOLIO OF INVESTMENTS DECEMBER 31, 2005

BlackRock Global Floating Rate Income Trust (BGT)

Rating 1 (unaudited)			Description	Value
			LONG-TERM
INVESTMENTS153.3%
			Corporate Bonds20.5%
			Automotive0.3%
B-	$ 25		Accuride
Corp., 8.50%, 2/01/15	$ 24,625
BB+	400		ArvinMeritor,
Inc., 8.75%, 3/01/12	384,000
Caa1	525	2	Delco
Remy Intl., Inc., 8.60%, 4/15/09	480,375
B-	40		Goodyear
Tire & Rubber Co., 7.857%, 8/15/11	39,100
CCC+	220	2	Metaldyne
Corp., 10.00%, 11/01/13	202,400
BB	185		Navistar
Intl. Corp., 7.50%, 6/15/11	175,750
				1,306,250
			Basic Materials1.3%
B+	1,000	2	Abitibi-Consolidated,
Inc., 7.991%, 6/15/11 (Canada)	962,500
B+	260	2	Boise
Cascade LLC, 7.475%, 10/15/12	253,500
BB-	1,000	2	Bowater,
Inc., 7.491%, 3/15/10	985,000
B+	70		Donohue
Forest Products, 7.625%, 5/15/07 (Canada)	72,188
Ba3	750		Hercules,
Inc., 6.75%, 10/15/29	721,875
BBB-	95		Intl.
Steel Group, Inc., 6.50%, 4/15/14	95,475
			Lyondell
Chemical Co.,
BB-	300		11.125%,
7/15/12	336,750
BB-	300		Ser. A,
9.625%, 5/01/07	313,875
B-	565		Nalco
Co., 8.875%, 11/15/13	591,131
			NewPage
Corp.,
B3	80		10.00%,
5/01/12	78,800
B3	1,500	2	10.50%,
5/01/12	1,485,000
B-	50	3	PQ
Corp., 7.50%, 2/15/13	46,625
				5,942,719
			Building &
Development0.3%
B+	1,000	2	Ainsworth
Lumber Co. Ltd., 8.277%, 10/01/10 (Canada)	977,500
B2	90	3	Compression
Polymers Corp., 10.50%, 7/01/13	87,300
B-	240	3	Goodman
Global Holding Co., Inc., 7.875%, 12/15/12	223,200
B	60		North
American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)	62,400
				1,350,400
			Consumer Products0.7%
B3	45		ALH
Finance LLC, 8.50%, 1/15/13	42,300
B3	400		Cenveo
Corp., 7.875%, 12/01/13	385,000
CCC+	1,050	2	Duane
Reade, Inc., 8.991%, 12/15/10	976,500
B3	110		Finlay
Fine Jewelry Corp., 8.375%, 6/01/12	99,000
B2	40		Gold
Kist, Inc., 10.25%, 3/15/14	44,400
B-	555	3	Knowledge
Learning Corp., Inc., 7.75%, 2/01/15	527,250
B-	400		Lazydays
RV Center, Inc., 11.75%, 5/15/12	406,000
B	180	2	Levi
Strauss & Co., 9.28%, 4/01/12	181,350
B3	310		Movie
Gallery, Inc., 11.00%, 5/01/12	241,800
B-	365	2,3	Rite Aid
Corp., 6.125%, 12/15/08	343,100
				3,246,700
			Ecological Services &
Equipment0.1%
BB-	625		Allied
Waste North America, 5.75%, 2/15/11	590,625
			Energy8.0%
BB+	750	3	AES
Corp., 9.00%, 5/15/15	821,250
B1	130		ANR
Pipeline Co., 9.625%, 11/01/21	159,088
B	80	3	Chaparral
Energy, Inc., 8.50%, 12/01/15	82,800
BB-	70		Compagnie
Generale de Geophysique SA, 7.50%, 5/15/15 (France)	72,100
B	375		El Paso
Production Holding Co., 7.75%, 6/01/13	390,937
B1	750		Foundation
Pennsylvania Coal Co., 7.25%, 8/01/14	778,125
BB	14,430		Gazprom
OAO, 9.625%, 3/01/13 (Russia)	17,382,378
B-	730		KCS
Energy, Inc., 7.125%, 4/01/12	730,000
			Pemex
Project Funding Master Trust,
Baa1	800	3	9.875%,
12/02/08	904,000
Baa1	12,700		Ser. 15,
6.40%, 10/15/09	13,335,000

See Notes to Financial Statements.

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

Rating 1 (unaudited)			Description	Value
			Energy(contd)
			Reliant
Energy, Inc.,
BB-	$ 205		6.75%,
12/15/14	$ 179,375
BB-	750		9.25%,
7/15/10	751,875
B2	300		Whiting
Petroleum Corp., 7.25%, 5/01/13	303,750
				35,890,678
			Entertainment &
Leisure0.2%
B3	180	3	Greektown
Holdings LLC, 10.75%, 12/01/13	178,650
BB	750		MGM
Mirage, 5.875%, 2/27/14	712,500
B	25		Poster
Financial Group, Inc., 8.75%, 12/01/11	25,813
B+	40	3	San
Pasqual Casino, 8.00%, 9/15/13	40,200
B+	70		Wynn Las
Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	68,250
				1,025,413
			Financial
Institutions3.2%
B+	93		AES
Ironwood LLC, 8.857%, 11/30/25	103,528
BB	140	3	American
Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	139,650
BB	750		Crum
& Forster Holdings Corp., 10.375%, 6/15/13	791,250
BB+	60		Ford
Motor Credit Co., 7.25%, 10/25/11	51,833
BB	3,000	2	General
Motors Acceptance Corp., 5.50%, 1/16/07	2,850,780
BB	5,455		Kazkommerts
Intl. BV, 8.50%, 4/16/13 (Netherlands)	5,940,495
Baa2	3,000	3	Kazkommertsbank
Intl. BV, 8.50%, 4/16/13	3,247,500
BBB	25	2	Marsh
& McLennan Cos., Inc., 4.72%, 7/13/07	24,902
B2	750	3	Rainbow
National Services LLC, 8.75%, 9/01/12	796,875
B-	300	2	Universal
City Florida Holding Co. I/II, 9.00%, 5/01/10	300,000
				14,246,813
			Health Care0.9%
Ca	10	2,4	Curative
Health Services, Inc., 10.75%, 5/01/11	6,200
B-	750		IASIS
Healthcare LLC/IASIS Cap. Corp., 8.75%, 6/15/14	788,437
B	1,750	2,3	Insight
Health Services Corp., 9.174%, 11/01/11	1,675,625
			Tenet
Healthcare Corp.,
B	30		6.375%,
12/01/11	27,450
B	50		9.875%,
7/01/14	50,750
B-	830		Universal
Hospital Services, Inc., 10.125%, 11/01/11	863,200
B2	450		US
Oncology, Inc., 9.00%, 8/15/12	481,500
				3,893,162
			Industrials0.6%
B-	735		DI
Finance/DynCorp. Intl., 9.50%, 2/15/13	764,400
CCC+	125	3	Hydrochem
Industrial Services, 9.25%, 2/15/13	120,000
B-	180		NationsRent
Cos., Inc., 9.50%, 5/01/15	187,650
CCC+	325		Park-Ohio
Inds., Inc., 8.375%, 11/15/14	282,750
B3	210	3	Sunstate
Equipment Co. LLC, 10.50%, 4/01/13	213,150
CCC+	575		Trimas
Corp., 9.875%, 6/15/12	477,250
Caa1	600		United
Rentals NA, Inc., 7.00%, 2/15/14	561,000
				2,606,200
			Media0.5%
NR	250		Cablecom
SCA, 5.264%, 4/30/12 (Luxembourg) (EUR)	298,935
CCC+	780		Charter
Communications Holdings II, LLC/Charter Communications Holdings II Capital
Corp., 10.25%,
9/15/10	776,100
BB-	750		Echostar
DBS Corp., 6.375%, 10/01/11	723,750
B2	80	3	Network
Communications, Inc., 10.75%, 12/01/13	80,100
B3	70		Nexstar
Finance, Inc., 7.00%, 1/15/14	64,137
B2	350	2,3	Paxson
Communications Corp., 7.777%, 1/15/12	348,250
CCC+	100	3	Unity
Media GmbH, 10.375%, 2/15/15 (Germany)	103,875
				2,395,147
			Real Estate1.3%
BB+	6,350		Rouse
Co., 5.375%, 11/26/13	6,041,263

See Notes to Financial Statements.

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

Rating 1 (unaudited)			Description	Value
			Technology0.9%
BB+	$ 1,500	2	Freescale
Semiconductor, Inc., 7.35%, 7/15/09	$ 1,548,750
Ba3	1,875	2	MagnaChip
Semiconductor SA/Magna Semiconductor Finance Co., 7.741%, 12/15/11	1,907,812
B-	250	2,3	Sungard
Data Systems, Inc., 8.525%, 8/15/13	260,625
B	140		Superior
Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	138,600
				3,855,787
			Telecommunications1.9%
CCC	70	3	Centennial
Communications Corp., 10.00%, 1/01/13	69,825
BB-	810		Cincinnati
Bell, Inc., 7.25%, 7/15/13	840,375
			Dobson
Cellular Systems, Inc.,
B1	350		8.375%,
11/01/11	371,438
B1	325	2	9.00%,
11/01/11	338,000
B3	115	2,3	Hawaiian
Telcom Communications, Inc., 9.948%, 5/01/13	109,825
			Intelsat
Ltd., (Bermuda)
Caa1	75		5.25%,
11/01/08	67,875
B2	50	3	8.25%,
1/15/13	50,000
B2	200	3	8.625%,
1/15/15	202,000
B2	485	2,3	9.614%,
1/15/12	492,275
BB	2,350	2	Qwest
Communications Intl., Inc, 7.84%, 2/15/09	2,376,437
BB+	2,500	2,3	Qwest
Corp., 7.741%, 6/15/13	2,706,250
BB	400	2	Rogers
Wireless Communications, Inc., 7.616%, 12/15/10 (Canada)	414,000
Caa1	385		Rural
Cellular Corp., 9.875%, 2/01/10	406,175
B3	150	3	Wind
Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)	156,375
				8,600,850
			Transportation0.3%
BB-	130	3	Hertz
Corp., 8.875%, 1/01/14	132,600
B3	315		Horizon
Lines LLC, 9.00%, 11/01/12	331,538
B+	750		OMI
Corp., 7.625%, 12/01/13 (Marshall Island)	758,437
				1,222,575
			Total
Corporate Bonds	92,214,582
			Bank Loans102.4%
			Aerospace &
Defense2.1%
	2,955		Caci
International, Inc., Term Loan, LIBOR + 1.50%, 5/03/11	2,979,510
	976		Camp
Acquisition Co., Term Loan A, LIBOR + 3.25%, 8/30/11	978,246
	995		Dyncorp
International LLC, Term Loan B, LIBOR + 2.75%, 2/11/11	997,488
	411		Hexcel
Corp., Term Loan B, LIBOR + 1.75%, 3/01/12	414,537
	2,000		MRO
Acquisition LLC, Second Lien Term Loan, LIBOR + 5.25%, 8/15/11	2,025,000
	1,492		Standard
Aero Holdings, Inc., Term Loan, LIBOR + 2.25%, 8/20/12	1,482,048
	499		U.S.
Investigations Services, LLC, Term Loan B, LIBOR + 2.50%, 10/14/12	499,997
				9,376,826
			Automotive3.1%
			Goodyear
Tire & Rubber Co. (The),
	500		Second
Lien Term Loan, LIBOR + 2.75%, 4/30/10	503,021
	1,000		Third
Lien Term Loan, LIBOR + 3.50%, 4/01/11	996,750
	993		Hilite
International, European Term Loan, LIBOR + 4.00%, 4/15/10	932,950
	750		IAP
Worldwide Services, Inc., Term Loan, LIBOR, 12/31/12	757,500
	500		Keystone
Automotive, Inc., Term Loan C, LIBOR + 2.50%, 11/30/10	501,250
	999		Metaldyne
Co. LLC, Term Loan D, LIBOR + 4.50%, 12/31/09	996,495
	1,750		Polar
Corp., Second Lein Term Loan, LIBOR, 6/15/10	1,776,250
	500		Precision
Parts Intl., Term Loan B, LIBOR + 3.75%, 10/01/11	501,875
	1,252		Progressive
Moulded Products Ltd., Term Loan B, LIBOR + 4.50%, 8/16/11	1,069,123
	2,993		TI Group
Automotive Systems, Term Loan C, LIBOR + 3.25%, 6/30/11	2,948,303
			TRW
Automotive Acquisitions Corp.,
	494		Tranche
B, LIBOR + 1.50%, 6/30/12	494,997
	2,481		New Term
Loan E, LIBOR + 1.50%, 10/29/10	2,485,592
				13,964,106

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description	Value
	Basic Materials13.3%
$ 2,776	Appleton
Papers, Inc., Term Loan, LIBOR + 2.25%, 6/11/10	$ 2,798,265
	Basell
NV,
500	Term
Loan B2, LIBOR + 2.50%, 9/07/13	507,344
500	Term
Loan C2, LIBOR + 3.00%, 9/07/14	507,344
995	Berry
Plastics Corp., Term Loan, LIBOR + 2.00%, 12/02/11	1,005,987
1,912	Boise
Cascade Corp., Term Loan D, LIBOR + 1.75%, 10/29/11	1,935,605
3,000	Brenntag
Group, Term Loan, TBD	3,024,166
791	Buckeye
Technologies, Inc., Term Loan, LIBOR + 2.00%, 3/15/08	794,344
3,588	Celanese,
Ag, Term Loan, LIBOR + 2.00%, 4/06/11	3,621,091
2,000	Cognis
Deutschland, Second Lien Term Loan, LIBOR + 4.75%, 11/15/13	2,039,000
1,000	Compass
Minerals, Term Loan, LIBOR + 1.50%, 12/31/12	1,005,000
1,426	Foundation
Coal Corp., Term Loan B, LIBOR + 2.00%, 7/30/11	1,445,727
987	Hercules,
Inc., Term Loan B, LIBOR + 1.75%, 10/08/10	997,805
7,308	Huntsman
International, LLC, Term Loan B, LIBOR + 1.75%, 8/16/12	7,340,937
	Ineos
Group, Ltd.,
2,750	Term
Loan B2, LIBOR + 2.75%, 12/16/13	2,750,000
2,750	Term
Loan C2, LIBOR + 3.25%, 12/16/14	2,750,000
3,780	Innophos,
Inc., Term Loan, LIBOR + 2.25%, 8/13/10	3,817,800
	Invista
B.V.,
2,650	Term Loan,
TBD	2,663,250
4,726	Term
Loan B-1, LIBOR + 2.25%, 4/29/11	4,765,461
220	Kraton
Polymers, LLC, Term Loan, LIBOR + 2.50%, 12/23/10	223,180
5,831	Nalco
Co., Term Loan B, LIBOR + 2.00%, 11/04/10	5,900,687
1,500	Pinnoak
Resources, LLC, Term Loan, LIBOR, 11/22/12	1,503,750
496	PQ
Corp., Term Loan, LIBOR + 2.00%, 2/10/12	501,213
500	Pregis
Corp., Term Loan B-2, LIBOR + 2.50%, 10/12/12	594,910
950	Professional
Paint, Inc., Term Loan, LIBOR + 2.75%, 9/30/11	953,563
4,355	Rockwood
Specialties Group, Inc., Term Loan E, LIBOR + 2.00%, 2/13/13	4,399,229
1,970	Supresta,
LLC, Term Loan, LIBOR + 3.00%, 7/30/12	1,972,462
		59,818,120
	Building &
Development2.4%
242	Atrium
Companies, Inc., Term Loan, LIBOR + 3.75%, 12/28/11	238,777
1,500	Custom
Building Products, Inc., Second Lien Term Loan, LIBOR + 5.00%, 4/29/12	1,485,000
500	Euramax
International, Inc., Second Lien Term Loan, LIBOR + 7.00%, 6/29/13	468,125
1,250	Harmon
Koval, Term Loan, 3.25%, 11/18/07	1,246,875
2,000	Landsource
Communities Development, LLC, Term Loan B, LIBOR + 2.50%, 3/31/10	2,017,500
988	Nortek,
Inc., Term Loan B, LIBOR + 2.25%, 8/27/11	995,400
2,268	Ply Gem
Industries, Inc., CND Term Loan, LIBOR + 2.50%, 3/15/10	2,276,731
1,250	Professional
Service, Inc., Term Loan B, LIBOR + 3.00%, 10/31/12	1,251,563
975	Rhodes
Ranch, Term Loan, LIBOR + 3.25%, 11/21/10	972,563
		10,952,534
	Business Equipment &
Services0.2%
990	Latham
International, Term Loan, LIBOR + 3.75%, 12/31/10	997,432
	Conglomerates6.6%
	Atlantis
Plastics, Inc.,
995	First
Lien Term Loan, LIBOR + 2.75%, 9/30/11	998,731
750	Second
Lien Term Loan, LIBOR + 7.25%, 3/11/05	748,125
486	Chart
Industries, Inc., Term Loan B, LIBOR + 2.00%, 10/17/12	491,884
2,757	Fidelity
National Information Solutions, Inc., Term Loan B, LIBOR + 1.75%, 3/09/13	2,767,507
500	Gentek,
Inc., Second Lien Term Loan, LIBOR + 5.75%, 3/15/12	496,000
3,456	Honeywell
Security, Term Loan B, LIBOR + 3.25%, 6/28/10	3,473,550
	IAP
Acquisition Corp.,
1,496	First
Lien Term Loan, LIBOR + 2.75%, 3/01/11	1,496,874
625	Second
Lien Term Loan, LIBOR + 5.75%, 3/01/12	637,239
	Invensys
Intl. Holdings, Ltd.,
2,000	Term
Loan, LIBOR, 3/05/09	1,940,000
561	Term
Loan B1, LIBOR + 3.50%, 9/05/09	570,609
2,000	Second
Lien Term Loan, LIBOR + 4.75%, 11/30/09	2,050,000

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description	Value
	Conglomerates(contd)
	Jarden
Corp.,
$ 989	Term
Loan B2, LIBOR + 1.75%, 1/24/12	$ 990,825
1,577	Term
Loan, LIBOR + 2.00%, 8/15/11	1,583,396
463	Lionbridge
Technologies, Inc., Term Loan, LIBOR + 3.50%, 9/01/11	464,813
998	Mueller
Group, Inc., Term Loan B, LIBOR + 2.25%, 10/03/12	1,008,722
417	Penn
Engineering & Manufacturing, Term Loan, LIBOR + 2.50%, 5/25/11	421,105
2,439	Polypore,
Inc., Term Loan, LIBOR + 3.00%, 11/12/11	2,420,661
707	Rexnord
Corp., Term Loan, LIBOR + 2.25%, 12/31/11	713,919
2,487	Sungard
Data Systems, Inc., Term Loan B, LIBOR + 2.50%, 2/11/13	2,501,750
3,754	Visant
Holding Corp., Term Loan C, LIBOR + 2.25%, 10/04/11	3,800,948
		29,576,658
	Consumer Products15.4%
1,000	24 Hour
Fitness Worldwide, Inc., Term Loan B, LIBOR + 3.00%, 6/08/12	1,011,667
469	Adams
Outdoor Advertising, L.P., Term Loan, LIBOR + 2.00%, 10/18/12	475,063
1,985	Alliance
One International, Inc., Term Loan B, LIBOR + 3.50%, 5/13/10	1,982,519
498	Arbys
Restaurant Group, Inc., Term Loan B, LIBOR + 2.25%, 7/25/12	499,366
	Berkline
Bench Craft,
1,625	Term
Loan B, LIBOR + 3.00%, 11/03/11	1,495,000
2,000	Second
Lien Term Loan, LIBOR + 10.00%, 4/30/12	1,500,000
	Bolthouse
Farms, Inc.,
1,000	Term
Loan, PRIME + 1.50%, 12/16/12	1,013,750
500	Term
Loan, PRIME + 4.50%, 12/16/13	510,833
995	Burger
King Corp., Term Loan B, LIBOR + 1.75%, 6/30/12	1,005,883
963	Carrols
Corp., Term Loan, LIBOR + 2.50%, 12/31/10	974,160
742	Central
Garden & Pet Co., Term Loan B, LIBOR + 1.75%, 5/15/09	751,716
498	Chiquita
Brands International, Inc., Term Loan C, LIBOR + 2.50%, 6/28/12	502,061
1,116	CKE
Restaurants, Inc., Term Loan, LIBOR + 2.00%, 5/01/10	1,125,412
	Coinmach
Corp.,
596	Term
Loan, 0.50%, 12/19/12	604,693
404	Term Loan,
LIBOR + 2.50%, 12/19/12	409,057
1,750	Commonwealth
Brands, Inc., Term Loan, PRIME + 1.25%, 12/22/12	1,766,406
1,122	Constellation
Brands, Inc., Term Loan B, LIBOR + 1.50%, 11/30/11	1,132,902
743	Culligan
International Co., Term Loan B, LIBOR + 2.50%, 9/30/11	750,853
3,500	Dennys
Corp., Second Lien Term Loan, LIBOR + 5.25%, 9/30/10	3,591,875
1,473	Desa
International, Inc., Term Loan, LIBOR + 5.00%, 12/30/11	1,455,033
	Eastman
Kodak Co.,
368	Term
Loan B-2, 1.50%, 10/18/12	364,890
882	Term
Loan B1, LIBOR + 2.25%, 10/18/12	883,088
1,500	Eight
OClock Coffee, Term Loan B, LIBOR + 3.00%, 11/14/11	1,511,250
500	Fender
Musical Instruments Corp., Second Lien Term Loan, LIBOR + 4.50%, 9/30/12	505,000
500	Garden
Fresh Restaurant Corp., Term Loan, PRIME, 6/30/12	500,000
224	Herbalife
International, Inc., Term Loan, LIBOR + 1.75%, 12/20/10	225,976
	Hertz
Corp.,
1,266	Term
Loan, 11.25%, 12/31/07	1,281,231
500	Term
Loan, LIBOR, 12/31/12	506,016
1,484	Term
Loan, LIBOR + 2.25%, 12/31/12	1,501,854
748	Knoll,
Inc., Term Loan, LIBOR + 2.00%, 10/03/12	755,606
990	Landrys
Restaurants, Inc., Term Loan B, LIBOR + 1.75%, 12/28/10	999,075
749	Language
Line, Inc., Term Loan B, LIBOR + 4.25%, 6/10/11	751,662
917	Maidenform,
Inc., Term Loan, LIBOR + 2.25%, 5/11/10	923,542
998	Mapco
Express, Inc., Term Loan, LIBOR + 2.75%, 4/28/11	1,009,969
500	MD
Beauty, Inc., Second Lien Term Loan, LIBOR + 7.00%, 2/18/13	503,125
3,483	Movie
Gallery, Inc., Term Loan B, LIBOR + 3.75%, 4/27/11	3,323,301
1,750	Neiman-Marcus
Group, Inc., Term Loan, LIBOR + 2.50%, 4/06/13	1,761,947
1,995	NewPage,
Term Loan B, LIBOR + 3.00%, 5/02/11	2,014,950
3,500	Olympus
Cable Holdings, LLC, Term Loan B, PRIME + 2.00%, 9/30/10	3,404,999
591	Oreck
Corp., Term Loan B, LIBOR + 2.75%, 1/27/12	593,963
	Oriental
Trading Co., Inc.,
1,345	Term
Loan B, LIBOR + 2.25%, 8/06/10	1,349,103
1,500	Second
Lien Term Loan, LIBOR + 4.75%, 1/08/11	1,504,375

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description	Value
	Consumer
Products(contd)
$ 3,455	OSI
Group LLC, German Term Loan, LIBOR + 2.00%, 9/02/11	$ 3,491,042
903	PBM
Products, LLC, Term Loan B, LIBOR + 3.00%, 7/26/11	904,263
2,382	Pierre
Foods, Inc., Term Loan B, LIBOR + 1.75%, 6/30/10	2,409,303
750	Pivotal
Promontory, LLC, Second Lien Term Loan, LIBOR + 6.50%, 8/31/11	750,000
1,970	Prestige
Brands Holdings, Inc., Term Loan B, LIBOR + 2.25%, 4/06/11	1,985,596
	R.H.
Donnelley, Inc.,
396	Term
Loan A3, LIBOR + 1.75%, 12/31/09	397,279
2,163	Term
Loan D, LIBOR + 1.75%, 6/30/11	2,172,046
1,500	Roundys
Supermarkets, Inc., Term Loan, LIBOR + 3.00%, 11/03/11	1,489,875
2,955	Solo
Cup, Inc., Term Loan, LIBOR + 2.50%, 2/27/11	2,972,741
993	Spectrum
Brands, Inc., Term Loan B, LIBOR + 2.25%, 2/06/12	996,636
	Synventive
Acquisition, Inc.,
748	Term
Loan B, LIBOR + 3.25%, 7/29/12	751,398
800	Term
Loan, LIBOR + 14.00%, 7/29/14	800,000
500	Travelcenters
of America, Inc., Term Loan B, LIBOR + 1.75%, 12/01/11	504,625
961	Tupperware
Corp., Term Loan, LIBOR + 1.50%, 12/05/12	959,288
		69,317,263
	Containers &
Packaging3.0%
349	Flexsol
Packaging Corp., First Lien Term Loan, LIBOR + 3.25%, 11/30/11	346,991
	Graham
Packaging Company, L.P.,
5,687	Term
Loan B, LIBOR + 2.25%, 10/07/11	5,749,092
2,000	Term
Loan C, LIBOR + 4.25%, 4/07/12	2,032,500
3,425	Graphic
Packaging International, Inc., Term Loan C, LIBOR + 2.50%, 6/30/10	3,463,744
750	Ranpak
Corp., Term Loan B, PRIME + 1.50%, 12/31/11	754,687
900	Smurfit-Stone
Container Corp., Term Loan B, LIBOR + 2.25%, 11/01/11	907,647
		13,254,661
	Ecological Services &
Equipment0.9%
	Allied
Waste North America, Inc.,
535	Term
Loan A, LIBOR + 2.00%, 1/15/12	537,811
1,416	Term
Loan, LIBOR + 2.00%, 1/15/12	1,422,941
2,000	Envirosolutions,
Inc., Term Loan, LIBOR + 3.50%, 7/07/12	2,030,000
		3,990,752
	Energy6.6%
1,500	AES
Corp., Term Loan, LIBOR + 1.75%, 4/30/08	1,513,125
	Boart
Longyear Co.,
1,496	Term
Loan, LIBOR + 3.00%, 7/28/12	1,511,212
500	Term
Loan, LIBOR + 7.00%, 4/30/13	500,000
995	Cellnet
Technology, Inc., Term Loan B, LIBOR + 3.00%, 4/26/12	1,004,950
1,498	Coffeyville
Resources, LLC, Term Loan, LIBOR + 2.50%, 6/24/12	1,515,068
597	Cogentrix
Delaware Holdings, Inc., Term Loan, LIBOR + 1.75%, 4/14/12	602,142
500	Coleto
Creek Power, Term Loan C1, LIBOR + 2.00%, 6/30/12	509,688
249	Complete
Production Services, Inc., Term Loan B, LIBOR, 9/12/12	251,869
1,975	El Paso
Corp., Term Loan, LIBOR + 2.85%, 11/30/07	1,982,681
498	Energy
Transfer Co., Term Loan B, LIBOR + 3.00%, 5/20/12	497,749
1,500	Key
Energy Services, Term Loan B, LIBOR + 2.75%, 6/30/12	1,518,124
482	Mainline,
L.P., Term Loan, LIBOR + 2.375%, 12/31/11	482,500
650	MGG
Holdings, Term Loan, TBD, 12/15/10	655,688
1,250	Petro
Geological Services, Term Loan, LIBOR, 12/31/12	1,258,594
250	Petrohawk,
Second Lien Term Loan, LIBOR + 4.50%, 7/31/10	251,875
7,037	Reliant
Energy Resources Corp., Term Loan, LIBOR + 2.375%, 4/30/10	7,009,332
	Semcrude,
L.P.,
636	USD Term
Loan, LIBOR + 2.25%, 3/16/11	641,679
1,496	CND Term
Loan, LIBOR + 2.25%, 3/16/11	1,511,349
1,500	Targa
Resources Asst. Sale, Term Loan, LIBOR + 2.25%, 10/31/07	1,498,125
2,983	Texas
Genco, LLC, Term Loan, LIBOR + 2.00%, 12/14/11	2,984,461

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description
	Energy(contd)
$ 500	Trout Coal
Holdings, LLC, Second Lien Term Loan, LIBOR + 6.50%, 3/15/12	$ 481,250
	Wolf Hollow I
LP.,
491	Term Loan, LIBOR,
6/15/12	493,939
500	Term Loan, LIBOR,
12/15/12	506,250
509	Term Loan, LIBOR
+ 2.25%, 6/15/12	512,936
		29,694,586
	Entertainment & Leisure8.1%
998	Blockbuster
Entertainment Corp., Term Loan B, LIBOR + 4.00%, 8/20/11	967,766
1,970	Boyd Gaming
Corp., Term Loan B, LIBOR + 1.50%, 6/30/11	1,991,753
1,245	CCM Merger, Inc.,
Term Loan B, LIBOR + 2.00%, 7/13/12	1,252,157
2,000	Greektown
Holdings, LLC, Term Loan B, LIBOR + 2.50%, 12/03/12	2,020,000
1,500	Hit
Entertainment, Ltd., Term Loan, LIBOR + 2.25%, 3/20/12	1,502,625
	Hollywood
Theaters, Inc.,
1,724	First Lien Term
Loan, LIBOR + 3.25%, 7/31/09	1,732,369
2,500	Second Lien Term
Loan, LIBOR + 7.00%, 1/31/10	2,515,625
1,485	Kerasotes
Theatres, Inc., Term Loan B, LIBOR + 2.50%, 10/31/11	1,489,949
4,924	Loews Cineplex
Entertainment Corp., Term Loan B, LIBOR + 2.25%, 7/31/11	4,938,627
990	Marina District
Fin. Company, Inc., Term Loan B, LIBOR + 1.75%, 10/20/11	995,775
5,000	Metro-Goldwyn-Mayer
Studios, Inc., Term Loan B, LIBOR + 2.25%, 4/08/12	5,029,545
998	Penn National Gaming,
Term Loan B, LIBOR + 1.75%, 10/03/12	1,008,411
750	Riverside Casino
& Golf Resort, LLC, Term Loan B, PRIME + 3.00%, 11/15/12	750,000
990	Universal City
Dev. Partners LP, Term Loan B, LIBOR + 2.00%, 6/09/11	1,001,137
1,500	Venetian Casino
Resorts, LLC, Term Loan B, LIBOR + 1.75%, 6/15/11	1,508,672
499	Volume Svcs.
America, Inc., Term Loan, LIBOR + 3.25%, 10/01/10	501,241
	Wembley, Inc.,
995	First Lien Term
Loan, LIBOR + 2.00%, 8/23/11	1,010,547
500	Second Lien Term
Loan, LIBOR + 3.75%, 8/23/12	508,437
1,099	Wyndham
International, Inc., Term Loan E, LIBOR + 4.50%, 9/11/07	1,154,317
4,000	Wynn Las Vegas,
LLC, Term Loan, LIBOR + 2.15%, 12/14/11	4,036,668
498	Yellowstone
Mountain Club, Term Loan, LIBOR + 2.35%, 9/30/10	498,697
		36,414,318
	Financial Institutions1.7%
1,185	Arias
Acquisitions, Inc., Term Loan, LIBOR + 3.75%, 7/26/11	1,180,556
1,433	Global Cash Access,
LLC, Term Loan, LIBOR + 2.25%, 3/10/10	1,450,829
	N.E.W. Holdings
I, LLC,
904	First Lien Term
Loan, LIBOR + 3.25%, 7/08/11	915,623
250	Second Lien Term
Loan, LIBOR + 7.00%, 6/30/12	253,750
2,000	Nasdaq Stock
Market, Inc., Term Loan B, LIBOR + 1.50%, 12/08/11	2,010,834
496	USI Holdings
Corp., Term Loan B, LIBOR + 2.50%, 8/11/08	497,142
1,103	Walnut Investment
Co., LLC, Term Loan, LIBOR + 2.75%, 4/13/12	1,110,914
		7,419,648
	Health Care8.5%
3,900	Arizant, Inc.,
Term Loan, PRIME + 2.25%, 8/15/10	3,915,096
1,500	CCS Med., Term
Loan B, LIBOR + 3.25%, 9/30/12	1,485,000
5,377	Community Health
Systems, Inc., Term Loan, LIBOR + 1.75%, 8/19/11	5,440,776
3,500	Concentra
Operating Corp., Term Loan B, LIBOR + 2.00%, 9/30/11	3,540,834
958	Davita, Inc.,
Term Loan B, LIBOR + 2.25%, 10/05/12	970,495
1,000	Duloxetine
Royalty Sub., First Lien Term Loan, LIBOR + 4.50%, 10/15/13	1,000,000
	HealthSouth
Corp.,
319	Term Loan B,
LIBOR + 2.50%, 2/28/10	319,547
1,175	Term Loan, LIBOR
+ 2.50%, 3/31/10	1,178,282
2,000	Term Loan, LIBOR
+ 5.00%, 6/15/10	1,996,666
2,000	Term Loan,
10.375%, 1/16/11	2,103,334
2,955	IASIS Healthcare
Corp., Term Loan B, LIBOR + 2.25%, 6/30/11	2,990,705
2,663	Jean Coutu Group,
Inc., Term Loan B, LIBOR + 2.25%, 7/30/11	2,686,887
531	Kinetic Concepts,
Inc., Term Loan B-2, LIBOR + 1.75%, 8/11/10	534,853
480	NDC Hlth. Corp.,
Term Loan, LIBOR + 3.00%, 11/26/08	479,968
993	Select Med.
Corp., Term Loan B, PRIME + 0.75%, 2/24/12	992,224
500	Triumph
Healthcare Second Holdings, Inc., Second Lien Term Loan, LIBOR + 8.50%,
8/31/12	499,584
3,029	US Oncology,
Inc., Term Loan, LIBOR + 2.25%, 8/20/11	3,059,746

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description
	Health Care(contd)
$ 993	Vanguard Hlth.
Holding Co. II, Term Loan, LIBOR + 2.25%, 9/23/11	$ 1,004,493
	Warner Chilcott
Corp.,
530	Term Loan, 1.375%,
1/18/11	528,928
2,167	Term Loan B,
LIBOR + 2.75%, 1/18/11	2,163,007
873	Term Loan C,
LIBOR + 2.75%, 1/18/11	871,586
403	Term Loan D,
LIBOR + 2.75%, 1/18/11	402,648
		38,164,659
	Industrials1.6%
	Acosta, Inc.,
1,250	Term Loan, LIBOR
+ 2.25%, 12/15/12	1,262,500
150	Term Loan, LIBOR
+ 5.75%, 6/06/13	153,000
435	Alderwoods Group,
Inc., Term Loan B2, LIBOR + 2.00%, 9/29/09	439,305
744	Novelis, Inc.,
CND Term Loan B, LIBOR + 1.75%, 1/06/12	750,959
625	QTC Acquisition,
Inc., Term Loan, LIBOR + 6.50%, 5/04/13	624,219
492	Roller Bearing
Co. of America, Term Loan, PRIME + 1.50%, 6/30/11	494,544
2,000	Tinnerman Palnut
Engineered Products, Inc., Term Loan, LIBOR + 7.25%, 11/01/11	1,860,000
1,649	Worldspan, L.P.,
Term Loan, LIBOR + 2.75%, 2/16/10	1,599,422
		7,183,949
	Media14.6%
1,844	Alliance Atlantis
Communications, Inc., Term Loan C, LIBOR + 1.50%, 12/20/11	1,854,704
1,737	American Lawyers
Media, Inc., First Lien Term Loan, LIBOR + 2.50%, 3/05/10	1,733,980
978	Bragg
Communications, Inc., Term Loan B, LIBOR + 2.00%, 8/31/11	989,744
1,000	Bresnan
Communications, LLC, Term Loan B, LIBOR + 3.50%, 9/30/10	1,010,938
10,000	Century Cable
Holdings, LLC, Term Loan, PRIME + 2.00%, 12/31/09	9,735,436
2,000	Century TCI California,
L.P., Term Loan, PRIME + 0.75%, 12/31/07	1,984,000
	Charter
Communications Operating, LLC,
5,993	Term Loan A,
LIBOR + 3.00%, 4/27/10	6,005,188
1,968	Term Loan B,
LIBOR + 3.25%, 4/27/11	1,971,703
3,479	Dex Media East,
LLC, Term Loan B, LIBOR + 1.75%, 12/31/08	3,500,106
	Dex Media West,
LLC,
702	Term Loan, TBD,
9/09/10	703,719
1,592	Term Loan B,
LIBOR + 1.75%, 3/09/10	1,598,989
2,000	DirecTV Holdings,
LLC, Term Loan B, LIBOR + 1.50%, 3/06/10	2,016,562
1,336	Emmis
Communications Co., Term Loan B, LIBOR + 1.75%, 5/15/12	1,340,523
	Insight Midwest
Holdings, LLC,
3,777	Term Loan A,
LIBOR + 1.50%, 6/30/09	3,774,235
2,985	Term Loan C,
LIBOR + 2.00%, 12/31/09	3,020,216
248	Masonite
International Corp., Term Loan, LIBOR + 2.00%, 4/05/13	245,568
	Mediacom
Communications Corp.,
2,103	Term Loan A,
LIBOR + 1.25%, 3/31/10	2,095,768
993	Term Loan C,
LIBOR + 2.00%, 2/01/14	1,004,906
1,980	Mediacom
Illinois, LLC, Term Loan B, LIBOR + 2.25%, 3/31/13	2,004,132
1,941	Mission
Broadcasting, Inc., Term Loan B, LIBOR + 1.75%, 8/14/12	1,950,756
	NEP Supershooters,
L.P.,
693	First Lien Term
Loan, LIBOR + 4.00%, 2/03/11	699,930
500	Second Lien Term
Loan, LIBOR + 8.00%, 2/01/11	495,000
328	New Skies
Satellites BV, Term Loan B, LIBOR + 2.00%, 5/02/11	329,017
1,976	Nexstar
Broadcasting, Inc., Term Loan B, LIBOR + 1.75%, 8/14/12	1,985,772
5,000	NTL Investment
Holding Ltd., Term Loan B, LIBOR + 3.00%, 5/19/12	5,011,250
750	Puerto Rico Cable
Acquisition Co., Second Lien Term Loan, LIBOR + 6.25%, 7/31/11	762,188
2,500	Raycom Media,
Inc., Term Loan B, LIBOR + 1.75%, 3/31/12	2,500,000
1,000	UPC Distribution
Corp., Term Loan H, LIBOR + 2.75%, 9/30/12	1,008,214
3,942	WMG Acquisition
Corp., Term Loan, LIBOR + 2.00%, 2/28/11	3,980,442
498	Young
Broadcasting, Inc., Term Loan, LIBOR + 2.25%, 11/03/12	499,210
		65,812,196
	Publishing0.2%
750	Endurance
Business Media, Term Loan B, LIBOR + 2.25%, 3/08/12	755,625

See Notes to Financial Statements.

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

Rating 1 (unaudited)	Description
	Real
Estate2.4%
	General Growth Properties, Inc.,
$ 832	Term Loan A,
LIBOR + 1.75%, 11/12/07	$ 833,922
3,487	Term Loan B,
LIBOR + 2.00%, 11/12/08	3,507,746
2,746	Headwaters, Inc., Term Loan, LIBOR + 2.25%, 4/30/11	2,759,472
	Kyle Acquisition Group, LLC,
731	Term Loan B,
LIBOR + 2.00%, 7/20/08	733,176
550	Term Loan, LIBOR
+ 2.00%, 7/20/10	552,062
885	Lake Las Vegas Resort, First Lien Term Loan, LIBOR +
2.75%, 11/01/09	887,386
952	Macerich Partnership, L.P., Term Loan, LIBOR + 1.60%,
4/25/06	952,308
248	Masonite Intl. Corp., CND Term Loan, LIBOR + 2.00%,
4/05/13	245,150
473	Stewart Enterprises, Inc., Term Loan B, LIBOR +
1.75%, 11/19/11	478,824
		10,950,046
	Technology3.6%
5,000	Colfax Intl., Term Loan, TBD, 11/30/11	5,919,500
2,916	Directed Electronics, Inc., Term Loan, LIBOR + 3.25%,
3/15/10	2,926,510
498	Federal IT Systems, Inc., Term Loan, LIBOR + 2.75%,
4/01/11	501,542
353	SS&C Technologies, Inc., Term Loan, LIBOR +
2.50%, 11/04/12	355,619
2,308	UGS Corp., Term Loan, LIBOR + 2.00%, 5/30/11	2,333,833
2,875	Verifone, Inc., Term Loan B, LIBOR + 2.00%, 6/30/11	2,907,465
1,400	Westcom Corp., Term Loan B, LIBOR + 2.75%, 12/16/10	1,403,543
		16,348,012
	Telecommunications7.7%
250	AAT Communications Corp., First Lien Term Loan, LIBOR
+ 1.75%, 7/27/12	252,969
1,000	Alaska Communications Systems Holdings, Inc., Term
Loan, LIBOR + 2.00%, 1/31/12	1,009,250
2,000	Atlantic Broadband Finance, LLC, Term Loan B1, LIBOR
+ 2.75%, 1/30/11	2,023,750
4,369	Centennial Cellular Operating Co., Term Loan, LIBOR +
2.25%, 2/09/11	4,417,585
500	Country Road Communications, LLC, Second Lien Term
Loan, LIBOR, 7/15/13	506,250
750	Fairpoint Communications, Inc., Term Loan, LIBOR +
1.75%, 2/15/12	751,875
993	Intelsat Zeus, Ltd., Term Loan, LIBOR + 1.75%,
7/28/11	1,000,875
2,000	Iowa Telecommunications Services, Inc., Term Loan B,
LIBOR + 1.75%, 11/23/11	2,015,000
	IPC Acquisition Corp.,
1,000	First Lien Term
Loan, LIBOR + 2.75%, 8/05/11	1,008,333
750	Second Lien Term
Loan, LIBOR + 7.25%, 8/05/12	724,375
1,000	Madison River Capital, LLC, Term Loan B, LIBOR +
2.50%, 7/29/12	1,013,750
	Ntelos, Inc.,
743	First Lien Term
Loan, LIBOR + 2.50%, 2/24/10	747,141
1,750	Second Lien Term
Loan, LIBOR + 5.00%, 2/24/12	1,760,937
1,250	Second Lien Term
Loan, LIBOR + 5.00%, 2/25/12	1,257,812
	PanAmSat Corp.,
1,248	Term Loan A1,
LIBOR + 2.50%, 8/20/09	1,257,606
1,980	Term Loan B1,
LIBOR + 2.00%, 8/20/11	2,001,616
2,000	Qwest Corp., Term Loan A, LIBOR + 4.75%, 6/30/07	2,044,500
	Satbirds Finance,
5,000	Term Loan B1,
LIBOR + 2.75%, 4/04/13	5,912,100
2,000	Second Lien Term
Loan, LIBOR + 4.25%, 10/15/13	2,396,081
451	Triton PCS, Inc., Term Loan, LIBOR + 3.25%, 11/15/09	452,026
1,933	Valor Telecommunication Enterprises II, LLC, Term
Loan B, LIBOR + 1.75%, 2/14/12	1,938,468
		34,492,299
	Transportation0.4%
500	Delta Air Lines, Inc., Term Loan A, LIBOR + 4.50%,
3/16/08	518,000
436	Sirva Worldwide, Inc., Term Loan, LIBOR + 4.00%,
12/31/09	416,030
	Transport Industries, LP,
121	Term Loan, TBD,
9/30/11	120,989
629	Term Loan B,
LIBOR + 2.50%, 9/31/09	631,825
		1,686,844
	Total Bank Loans	460,170,534

See Notes to Financial Statements.

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

Rating 1 (unaudited)			Description
			Foreign Government Bonds30.4%
B-	$ 11,840		Argentina
Republic, 4.01%, 8/03/12	$ 9,091,635
B+	5,809	2	Bolivarian
Republic of Venezuela, 2.75%, 12/18/07	5,780,072
			Federative
Republic of Brazil,
BB-	3,560	2	2.125%, 4/15/12	3,515,258
BB-	10,424	2	3.125%, 4/15/12	10,321,846
BB-	9,435	2	10.271%, 6/29/09	10,897,425
BB-	1,840		Ser. B, 10.00%,
8/07/11	2,143,600
B+	1,600		Islamic Republic
of Pakistan, 6.75%, 2/19/09	1,612,622
	5,689	2	Kingdom of
Morocco, Zero Coupon, 1/02/09	5,674,665
A-	800		Malaysia, 8.75%,
6/01/09	893,584
A	2,400		Republic of
Chile, 6.875%, 4/28/09	2,539,200
BB	3,200		Republic of Costa
Rica, 9.335%, 5/15/09	3,536,000
BB+	800		Republic of El
Salvador, 9.50%, 8/15/06	822,400
BB	12,714	2	Republic of
Panama, 2.75%, 7/17/16	12,415,488
			Republic of Peru,
BB	5,488	2	4.50%, 3/07/17	5,117,560
BB	2,400		9.125%, 1/15/08	2,580,000
BBB+	2,400		Republic of South
Africa, 7.375%, 4/25/12	2,673,000
BB-	2,400		Republic of the
Philippines, 8.875%, 4/15/08	2,574,811
BB-	2,400		Republic of
Turkey, 12.00%, 12/15/08	2,821,440
NR	950		Republic of
Uruguay, 6.875%, 1/19/16 (EUR)	1,150,011
B+	3,321	2	Republic of
Venezuela, 3.063%, 3/31/07	3,304,469
BBB	4,000		Russian
Federation, 10.00%, 6/26/07	4,276,000
A2	2,000	2	Sberbank of
Russia, 5.944%, 10/24/06	2,021,200
			Ukraine,
BB-	2,800	3	6.875%, 3/04/11	2,885,680
BB-	16,100	2,3	7.343%, 8/05/09	17,307,500
			United Mexican
States,
Baa1	4,800	2	5.28%, 1/13/09	4,867,200
NR	35,170		8.00%, 12/19/13
(MXN)	3,263,474
NR	5,845		9.00%, 12/22/11
(MXN)	573,038
NR	1,445		9.50%, 12/18/14
(MXN)	146,246
			Venezuela
Republic,
BB-	4,000	2	5.194%, 4/20/11	3,920,000
BB-	4,800		9.125%, 6/18/07	4,982,400
B+	2,000		11.00%, 3/05/08
(EUR)	2,687,453
			Total Foreign
Government Bonds	136,395,277
			Total
Long-Term Investments (cost $683,942,135)	688,780,393
			SHORT-TERM INVESTMENT5.5%
			U.S. Government and Agency Security5.5%
	24,500	5	FNMA Discount
Note, 3.50%, 1/03/06 (cost $24,495,236)	24,495,236
			Total
investments158.8% (cost $708,437,371 6 )	$ 713,275,629
			Liabilities in
excess of other assets(4.6)%	(20,519,499	)
			Preferred shares
at redemption value, including dividends payable(54.2)%	(243,537,266	)
			Net
Assets100%	$ 449,218,864

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Rate shown is interest rate
as of December 31, 2005. |
| 3 | Security is not registered
under the Securities Act of 1933. These securities may be resold in
transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of December 31, 2005, the Trust held 7.6% of its net
assets, with a current market value of $34,352,355, in securities restricted
as to resale. |
| 4 | Issuer is in default and/or
bankruptcy. |
| 5 | Rate shown is the yield to
maturity as of December 31, 2005. |
| 6 | Cost for Federal income tax
purposes is $708,500,396. The net unrealized appreciaton on a tax basis is
$4,775,233, consisting of $8,820,009 gross unrealized appreciation and
$4,004,776 gross unrealized depreciation. |

A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the SECs Standard Industry Codes.

KEY TO ABBREVIATIONS — CND		Canadian Dollar	TBD		To Be Determined
EUR		European Monetary Unit	USD		U.S. Dollar
MXN		Mexican Peso

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS DECEMBER 31, 2005

BlackRock High Income Shares (HIS)

Rating 1 (unaudited)			Description
			LONG-TERM INVESTMENTS143.5%
			Corporate Bonds141.8%
			Aerospace & Defense4.3%
BB-	$ 250		AAR Corp.,
6.875%, 12/15/07	$ 253,125
B	380		Argo-Tech Corp.,
9.25%, 6/01/11	394,100
B+	80		Armor Holdings,
Inc., 8.25%, 8/15/13	86,400
BB	1,750		Availl, Inc.,
7.625%, 7/01/11	1,793,750
B	1,940		BE Aerospace,
Inc., 8.875%, 5/01/11	2,037,000
BB	1,500		Sequa Corp.,
8.875%, 4/01/08	1,567,500
				6,131,875
			Automotive3.5%
BB+	580		ArvinMeritor,
Inc., 8.75%, 3/01/12	553,900
			Delco Remy Intl.,
Inc.,
CCC-	500		9.375%, 4/15/12	172,500
CCC-	500		11.00%, 5/01/09	175,000
B-	1,750		Goodyear Tire
& Rubber Co., 7.857%, 8/15/11	1,710,625
CCC+	985	2	Metaldyne Corp.,
10.00%, 11/01/13	906,200
BB	720		Navistar Intl.
Corp., 7.50%, 6/15/11	676,800
B-	200		Stanadyne Corp.,
10.00%, 8/15/14	188,000
BB-	550		TRW Automotive,
Inc., 9.375%, 2/15/13	595,375
				4,978,400
			Basic Materials15.3%
B-	1,200	2	Alpha Natural
Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12	1,290,000
B-	215	2,3	BCI US Finance
Corp./Borden 2 Nova Scotia Finance ULC, 10.10%, 7/15/10	219,031
B-	2,380		Caraustar
Industries, Inc., 9.875%, 4/01/11	2,427,600
BB-	1,010	2	Del Monte Corp.,
8.625%, 12/15/12	1,073,125
B+	390		Donohue Forest
Products, 7.625%, 5/15/07 (Canada)	402,187
			Equistar
Chemicals LP/Equistar Funding Corp.,
BB-	125		8.75%, 2/15/09	131,250
BB-	2,780		10.125%, 9/01/08	3,016,300
BB-	1,250		10.625%, 5/01/11	1,375,000
B	500	3	Huntsman Intl.
LLC, 7.375%, 1/01/15	482,500
BB-	1,450		Huntsman LLC,
11.625%, 10/15/10	1,645,750
			IMC Global, Inc.,
BB	200		Ser. B, 10.875%,
6/01/08	222,000
BB	45		10.875%, 8/01/13	51,638
CCC+	2,205	2,3	Innophos, Inc.,
9.625%, 8/15/14	2,227,050
BBB+	165		Ispat Inland ULC,
9.75%, 4/01/14 (Canada)	187,688
B	500		Jacuzzi Brands,
Inc., 9.625%, 7/01/10	531,250
BB-	790		Lyondell Chemical
Co., 10.50%, 6/01/13	894,675
B-	715		Nalco Co.,
8.875%, 11/15/13	748,069
B3	1,225		NewPage Corp.,
10.00%, 5/01/12	1,206,625
B+	275		Norske Skog,
Ltd., 7.375%, 3/01/14 (Canada)	240,625
B-	255	3	PQ Corp., 7.50%,
2/15/13	237,788
B-	1,000		Resolution Performance
Products, Inc., 13.50%, 11/15/10	1,057,500
			Rhodia SA,
CCC+	1,250		8.875%, 6/01/11
(France)	1,292,187
B3	250		10.25%, 6/01/10
(France)	275,625
			Southern Peru
Copper Corp.,
BBB-	140	3	6.375%, 7/27/15	139,833
BBB-	370	3	7.50%, 7/27/35	365,837
				21,741,133
			Building & Development3.4%
B-	670	3	Ahern Rentals,
Inc., 9.25%, 8/15/13	695,963
B2	540	3	Compression
Polymers Corp., 10.50%, 7/01/13	523,800
B-	2,500	3	Goodman Global
Holding Co., Inc., 7.875%, 12/15/12	2,325,000
Ba2	1,000		K Hovnanian
Enterprises, Inc., 7.75%, 5/15/13	987,116
B	330		North American
Energy Partners, Inc., 9.00%, 6/01/10 (Canada)	343,200
				4,875,079

BlackRock High Income Shares (HIS) (continued)

Rating 1 (unaudited)			Description
			Consumer Products9.4%
			Cenveo Corp.,
B3	$ 565		7.875%, 12/01/13	$ 543,812
B1	550		9.625%, 3/15/12	592,625
B3	2,035		Finlay Fine
Jewelry Corp., 8.375%, 6/01/12	1,831,500
B2	928		Gold Kist, Inc.,
10.25%, 3/15/14	1,030,080
B-	1,760	3	Knowledge
Learning Corp., Inc., 7.75%, 2/01/15	1,672,000
B-	2,425		Lazydays RV
Center, Inc., 11.75%, 5/15/12	2,461,375
B	110	2	Levi Strauss
& Co., 9.28%, 4/01/12	110,825
Caa2	1,230	2	Merisant Co.,
9.50%, 7/15/13	756,450
B3	2,065		Movie Gallery,
Inc., 11.00%, 5/01/12	1,610,700
B2	240	3	Neiman-Marcus
Group, Inc., 9.00%, 10/15/15	245,400
BB-	400	3	Quiksilver, Inc.,
6.875%, 4/15/15	385,000
			Rite Aid Corp.,
B-	750		4.75%, 12/01/06	733,125
B-	715	2,3	6.125%, 12/15/08	672,100
BB-	250		8.125%, 5/01/10	255,000
B	500		Swift & Co.,
12.50%, 1/01/10	526,250
				13,426,242
			Containers & Packaging5.6%
B1	640	3	Crown Americas
LLC and Crown Americas Capital Corp., 7.75%, 11/15/15	662,400
B	1,575		Crown Cork &
Seal, Inc., 8.00%, 4/15/23	1,512,000
B	285		Crown European
Holdings SA, 7.375%, 12/15/26	261,488
CCC+	75		Graham Packaging
Co., Inc., 9.875%, 10/15/14	72,750
B+	1,000		Jefferson Smurfit
Corp., 7.50%, 6/01/13	920,000
B	2,600		Owens Brockway,
8.25%, 5/15/13	2,684,500
B	250		Owens Illinois,
Inc., 7.35%, 5/15/08	253,125
CCC+	575	3	Pregis Corp.,
12.375%, 10/15/13	565,656
B+	1,000		Stone-Container
Corp. Enterprises, Inc., 9.75%, 2/01/11	1,010,000
				7,941,919
			Ecological Services & Equipment1.6%
			Allied Waste NA,
Inc.,
BB-	800		8.50%, 12/01/08	841,000
BB-	1,000		8.875%, 4/01/08	1,052,500
B	400		Casella Waste
Systems, Inc., 9.75%, 2/01/13	421,000
				2,314,500
			Energy17.8%
BB	250		AES Corp., 9.50%,
6/01/09	270,000
B1	285		ANR Pipeline Co.,
9.625%, 11/01/21	348,769
B+	340	3	Atlas Pipeline
Partners LP, 8.125%, 12/15/15	343,060
B-	140	2,3,4	Calpine Corp.,
8.50%, 7/15/10	114,450
B	420	3	Chaparral Energy,
Inc., 8.50%, 12/01/15	429,450
			Chesapeake Energy
Corp.,
BB	720		6.625%, 1/15/16	729,000
BB	50		6.875%, 1/15/16	51,250
B-	685		Clayton Williams
Energy, Inc., 7.75%, 8/01/13	657,600
			CMS Energy Corp.,
BB-	80		7.50%, 1/15/09	82,400
BB-	160		8.50%, 4/15/11	174,400
BB-	240		9.875%, 10/15/07	257,400
BB-	390		Compagnie
Generale de Geophysique SA, 7.50%, 5/15/15 (France)	401,700
B	230	3	Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	232,300
			Dynegy Holdings,
Inc.,
B+	180	3	9.875%, 7/15/10	197,100
B+	519	3	10.125%, 7/15/13	586,470
			El Paso Corp.,
Caa1	100	3	7.42%, 2/15/37	95,000
B-	600	3	7.75%, 6/15/10	612,000
Caa1	3,250	3	9.625%, 5/15/12	3,583,125
Caa1	205	3	10.75%, 10/01/10	227,294

BlackRock High Income Shares (HIS) (continued)

Rating 1 (unaudited)			Description	Value
			Energy(contd)
B1	$ 50	2	El Paso Natural
Gas Co., 8.375%, 6/15/32	$ 56,625
B	80		Encore
Acquisition Co., 7.25%, 12/01/17	79,200
B	1,390		Exco Resources,
Inc., 7.25%, 1/15/11	1,410,850
			Hilcorp Energy I
LP/Hilcorp Finance Corp.,
B	200	3	7.75%, 11/01/15	203,500
B	139	3	10.50%, 9/01/10	153,942
BBB-	198		Homer City
Funding LLC, 8.734%, 10/01/26	230,507
B-	760		KCS Energy, Inc.,
7.125%, 4/01/12	760,000
			Midwest
Generation LLC,
B+	388		8.56%, 1/02/16	421,864
B+	295		8.75%, 5/01/34	324,500
BB-	400	3	Mirant North
America LLC, 7.375%, 12/31/13	403,000
B2	1,680		Mission Energy
Holdings Co., 13.50%, 7/15/08	1,948,800
B-	240	3	Ocean Rig AS,
8.375%, 7/01/13 (Norway)	255,000
B2	1,775		Orion Power
Holdings, Inc., 12.00%, 5/01/10	2,005,750
B	25		Range Resources
Corp., 6.375%, 3/15/15	24,375
			Reliant Energy,
Inc.,
BB-	295		6.75%, 12/15/14	258,125
BB-	285		9.25%, 7/15/10	285,712
B2	1,475		Roseton/Danskammer,
7.27%, 11/08/10	1,482,375
B2	345	3	Targa Resources,
Inc., 8.50%, 11/01/13	354,487
B+	598	3	Tenaska Alabama
Partners LP, 7.00%, 6/30/21	600,976
B1	1,000		Tennessee Gas
Pipeline Co., 7.50%, 4/01/17	1,073,750
BB+	60		Transcontinental
Gas Pipe Line Corp., 7.25%, 12/01/26	65,700
BBB-	200		TXU Corp., 6.55%,
11/15/34	189,626
Ba3	2,000		Universal
Compression, Inc., 7.25%, 5/15/10	2,030,000
B2	820		Utilicorp Finance
Corp., 7.75%, 6/15/11 (Canada)	842,550
B-	240	3	Verasun Energy
Corp., 9.875%, 12/15/12	243,600
			Whiting Petroleum
Corp.,
B2	35	3	7.00%, 2/01/14	35,088
B2	200		7.25%, 5/01/13	202,500
				25,335,170
			Entertainment & Leisure6.1%
B1	250	2	Felcor Lodging
LP, 8.83%, 6/01/11	260,000
			Gaylord
Entertainment Co.,
B-	450		6.75%,
11/15/14	439,875
B-	1,000		8.00%,
11/15/13	1,047,500
B3	990	3	Greektown
Holdings LLC, 10.75%, 12/01/13	982,575
B	650		Inn of the
Mountain Gods Resort & Casino, 12.00%, 11/15/10	643,500
BB	450		K2, Inc., 7.375%,
7/01/14	448,875
BB+	500		Park Place
Entertainment Corp., 7.875%, 3/15/10	537,500
B	720		Poster Financial
Group, Inc., 8.75%, 12/01/11	743,400
B-	705		Riddell Bell
Holdings, Inc., 8.375%, 10/01/12	655,650
BBB-	500		Royal Caribbean
Cruises Ltd., 6.875%, 12/01/13 (Liberia)	529,570
B+	240	3	San Pasqual
Casino, 8.00%, 9/15/13	241,200
BB-	630	3	Seneca Gaming
Corp., 7.25%, 5/01/12	633,937
B	500	2	Virgin River
Casino, 9.00%, 1/15/12	510,000
B+	1,000		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	975,000
				8,648,582
			Financial Institutions13.4%
B+	280		AES Ironwood LLC,
8.857%, 11/30/25	310,585
B3	1,625		BCP Crystal US
Holdings Corp., 9.625%, 6/15/14 (Luxembourg)	1,807,813
B-	445	3	Borden US Finance
Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14	441,106
BB	200		Crum &
Forster Holdings Corp., 10.375%, 6/15/13	211,000
			E*Trade Financial
Corp.,
B+	220	3	7.375%,
9/15/13	222,750
B+	205		7.875%,
12/01/15	211,663
BB	1,205		Fairfax Financial
Holdings Ltd., 7.75%, 4/26/12 (Canada)	1,129,688
			Ford Motor Credit
Co.,
BB+	2,440		5.70%,
1/15/10	2,072,414
BB+	450		7.25%,
10/25/11	388,746

BlackRock High Income Shares (HIS) (continued)

Rating 1 (unaudited)			Description	Value
			Financial Institutions(contd)
B-	$ 2,500		Jostens
Intermediate Holding Corp., 7.625%, 10/01/12	$ 2,512,500
B-	1,945		K&F
Acquisition, Inc., 7.75%, 11/15/14	1,969,312
B-	1,240	3	Nell AF SARL,
8.375%, 8/15/15 (Luxembourg)	1,227,600
B3	2,955	3	Rainbow National
Services LLC, 10.375%, 9/01/14	3,316,987
B-	2,005		Standard Aero
Holdings, Inc., 8.25%, 9/01/14	1,659,138
B-	110	2	Universal City
Florida Holding Co. I/II, 9.00%, 5/01/10	110,000
CCC+	1,250		Vanguard Health
Holding Co. II LLC, 9.00%, 10/01/14	1,328,125
BB-	110		Western Financial
Bank, 9.625%, 5/15/12	122,925
				19,042,352
			Health Care4.7%
Ca	50	2,4	Curative Health
Services, Inc., 10.75%, 5/01/11	31,000
B	500		Genesis
Healthcare Corp., 8.00%, 10/15/13	526,250
B	725	2,3	Insight Health
Services Corp., 9.174%, 11/01/11	694,187
CCC+	390		MedQuest, Inc.,
11.875%, 8/15/12	383,175
B-	900		Norcross Safety
Products LLC/Norcross Capital Corp., 9.875%, 8/15/11	927,000
B-	940	2,3	Select Medical
Corp., 9.933%, 9/15/15	944,700
			Tenet Healthcare
Corp.,
B	180		6.375%,
12/01/11	164,700
B	180		9.875%,
7/01/14	182,700
B-	1,290		Universal
Hospital Services, Inc., 10.125%, 11/01/11	1,341,600
B-	1,500		VWR Intl., Inc.,
8.00%, 4/15/14	1,492,500
				6,687,812
			Industrials13.3%
B	1,000		Blount, Inc.,
8.875%, 8/01/12	1,055,000
B+	1,235		Celestica, Inc.,
7.625%, 7/01/13 (Canada)	1,213,387
B-	150	3	Chart Industries,
Inc., 9.125%, 10/15/15	153,375
B-	3,150		DI
Finance/DynCorp. Intl., 9.50%, 2/15/13	3,276,000
B-	2,000		ERICO Intl.
Corp., 8.875%, 3/01/12	2,065,000
B3	1,000		H&E Equipment
Services LLC/H&E Finance Corp., 11.125%, 6/15/12	1,105,000
B-	1,500		NationsRent Cos.,
Inc., 9.50%, 5/01/15	1,563,750
BB-	1,910		Rent-A-Center,
Inc., 7.50%, 5/01/10	1,824,050
BB	1,387		Service Corp.
Intl., 7.70%, 4/15/09	1,456,350
B3	1,470	3	Sunstate
Equipment Co. LLC, 10.50%, 4/01/13	1,492,050
B	175		Terex Corp.,
7.375%, 1/15/14	173,688
CCC+	1,710		Trimas Corp.,
9.875%, 6/15/12	1,419,300
			United Rentals
NA, Inc.,
Caa1	1,100		7.00%,
2/15/14	1,028,500
Caa1	1,100		7.75%,
11/15/13	1,072,500
				18,897,950
			Media19.1%
B-	840		Allbritton
Communications Co., 7.75%, 12/15/12	845,250
CCC+	1,135		American Media
Operations, Inc., 10.25%, 5/01/09	1,055,550
NR	1,250	2	Cablecom SCA,
5.264%, 4/30/12 (Luxembourg), (EUR)	1,494,674
B3	650	2	Cablevision
Systems Corp., 8.716%, 4/01/09	659,750
CCC+	1,250	3	CCH I Holdings
LLC, 11.125%, 1/15/14	731,250
B	500	3	Charter
Communications Operating/Charter Communications Operating Capital,
			8.375%,
4/30/14	497,500
CCC+	3,390		Charter
Communications Holdings II, LLC/Charter Communications Holdings II Capital
Corp., 10.25%, 9/15/10	3,373,050
B+	550		Corus
Entertainment, Inc., 8.75%, 3/01/12 (Canada)	595,375
B3	2,550		CSC Holdings,
Inc., 10.50%, 5/15/16	2,709,375
BB	500		Dex Media East
LLC/Dex Media East Finance Co., 9.875%, 11/15/09	540,625
B	1,088		Dex Media West
LLC/Dex Media Finance Co., 9.875%, 8/15/13	1,206,320
B	750		Dex Media, Inc.,
8.00%, 11/15/13	768,750
B	1,000		Echostar
Communications Corp., 5.75%, 5/15/08	975,000
BB-	365	2	Echostar DBS
Corp., 7.78%, 10/01/08	372,300
B	250		General Cable
Corp., 9.50%, 11/15/10	265,625
B-	410		Houghton Mifflin
Co., 9.875%, 2/01/13	440,750
B2	420	3	Network
Communications, Inc., 10.75%, 12/01/13	420,000

BlackRock High Income Shares (HIS) (continued)

Rating 1 (unaudited)			Description	Value
			Media(contd)
B3	$ 660		Nexstar Finance,
Inc., 7.00%, 1/15/14	$ 604,725
B2	575	2,3	Paxson
Communications Corp., 7.777%, 1/15/12	572,125
			Primedia, Inc.,
B2	1,310		8.875%,
5/15/11	1,205,200
B2	940	2	9.715%,
5/15/10	911,800
B	610		Quebecor Media,
Inc., 11.125%, 7/15/11 (Canada)	661,850
			Sinclair
Broadcast Group, Inc.,
B	2,150		8.00%, 3/15/12	2,214,500
B	450		8.75%, 12/15/11	473,062
CCC+	175	3	Unity Media GmbH,
10.375%, 2/15/15 (Germany)	181,781
Caa1	2,095		Vertis, Inc.,
10.875%, 6/15/09	2,063,575
CCC	1,510		Young
Broadcasting, Inc., 10.00%, 3/01/11	1,411,850
				27,251,612
			Technology6.8%
CCC+	120		Amkor Technology,
Inc., 9.25%, 2/15/08	116,400
BBB-	500		Fisher Scientific
Intl., Inc., 3.25%, 3/01/24	496,875
B+	200	3	Hynix
Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)	216,750
BB-	2,600		Lucent
Technologies, Inc., 6.50%, 1/15/28	2,190,500
			MagnaChip
Semiconductor SA/Magna Semiconductor Finance Co., (Luxembourg)
Ba3	540		6.875%,
12/15/11	533,250
Ba3	60		7.741%,
12/15/11	61,050
B2	980		8.00%,
12/15/14	933,450
CCC+	130	3	SS&C
Technologies, Inc., 11.75%, 12/01/13	133,250
BB	900		STATS ChipPAC
Ltd., 7.50%, 7/19/10 (Singapore)	904,500
			Sungard Data
Systems, Inc.,
B-	240	2,3	8.525%,
8/15/13	250,200
B-	685	3	9.125%,
8/15/13	712,400
B-	1,200	3	10.25%, 8/15/15	1,206,000
B	685		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	678,150
B-	740		UGS Corp.,
10.00%, 6/01/12	810,300
BB+	500		Xerox Corp.,
7.625%, 6/15/13	527,500
				9,770,575
			Telecommunications14.4%
B2	750	2	Airgate PCS,
Inc., 8.35%, 10/15/11	774,375
BB-	1,000		American Tower
Corp., 7.125%, 10/15/12	1,030,000
			Centennial
Communications Corp.,
B3	645		8.125%,
2/01/14	654,675
CCC	400	3	10.00%,
1/01/13	399,000
BB-	2,085		Cincinnati Bell,
Inc., 7.25%, 7/15/13	2,163,188
B3	170	2,3	Hawaiian Telcom
Communications, Inc., 9.948%, 5/01/13	162,350
B+	500		Insight Midwest
LP/Insight Capital, 10.50%, 11/01/10	525,625
			Intelsat Ltd.,
(Bermuda)
B2	1,235	3	8.625%,
1/15/15	1,247,350
B2	895	3	9.609%,
1/15/12	908,425
BB-	1,120		Lucent
Technologies, Inc., 6.45%, 3/15/29	954,800
B-	150		Northern Telecom
Ltd., 6.875%, 9/01/23 (Canada)	134,250
CCC+	410	2,3	Ntelos Holdings
Corp., 13.35%, 10/15/13	408,975
B1	1,072		PanAmSat Corp.,
9.00%, 8/15/14	1,125,600
NA	3,000	2,4,6	Poland Telecom
Finance BV, 14.00%, 12/01/07 (Netherlands)
B+	230		Qwest Capital
Funding, Inc., 7.00%, 8/03/09	231,150
			Qwest Corp.,
BB+	850	3	7.741%,
6/15/13	920,125
BB+	3,190	2	8.875%,
3/15/12	3,580,775
BB-	615		Rogers Wireless
Communications, Inc., 8.00%, 12/15/12 (Canada)	651,900
			Rural Cellular
Corp.,
B2	1,000		8.25%,
3/15/12	1,055,000
Caa1	1,560		9.875%,
2/01/10	1,645,800
CCC-	1,170		Triton PCS, Inc.,
9.375%, 2/01/11	854,100
B3	1,100	3	Wind Acquisition
Finance SA, 10.75%, 12/01/15 (Luxembourg)	1,135,750
				20,563,213

BlackRock High Income Shares (HIS) (continued )

Rating 1 (unaudited)			Description
			Transportation3.1%
B	$ 905		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	$ 916,313
BB-	1,035	3	Hertz Corp.,
8.875%, 1/01/14	1,055,700
B3	1,616		Horizon Lines
LLC, 9.00%, 11/01/12	1,700,840
BB+	660		Overseas
Shipholding Group, Inc., 8.25%, 3/15/13	694,650
				4,367,503
			Total Corporate
Bonds	201,973,917
Shares
			Common Stocks0.0%
	495	5	Crown Castle
Intl. Corp.	13,320
	64,467	4,5,6	Goss Holdings,
Inc.	1
			Total Common
Stocks	13,321
			Preferred Securities1.7%
			Consumer Products0.5%
	30,000		Smurfit-Stone
Container Corp., 7.00%	676,500
			Containers & Packaging0.1%
	5,000		Owens Illinois,
Inc., 4.75%	170,000
			Energy0.4%
	500	3,4,6	NRG Energy, Inc.,
4.00%	649,938
			Media0.3%
	10,300		Emmis
Communications Corp., 6.25%	436,524
			Telecommunications0.4%
	10,000		Crown Castle
Intl. Corp., 6.25%	529,080
			Total Preferred
Securities	2,462,042
			Warrants0.0%
	3,700	3,5,6	Pliant Corp.
expires 6/01/10
			Total Long-Term
Investments (cost $209,555,522)	204,449,280
Principal Amount (000)
			SHORT-TERM INVESTMENT0.9%
			U.S. Government and Agency Security0.9%
	$ 1,300	7	FNMA Discount
Note, 3.50%, 1/03/06 (cost $1,299,747)	1,299,747
			Total
investments144.4% (cost $210,855,269 8 )	$ 205,749,027
			Liabilities in
excess of other assets(44.4)%	(63,291,719	)
			Net
Assets Applicable to Common Shareholders100%	$ 142,457,308

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Rate shown is interest rate
as of December 31, 2005. |
| 3 | Security is not registered
under the Securities Act of 1933. These securities may be resold in
transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of December 31, 2005, the Trust held 29.7% of its
net assets, with a current market value of $42,248,536, in securities
restricted as to resale. |
| 4 | Issuer is in default and/or
bankruptcy. |
| 5 | Non-income producing
security. |
| 6 | Security is fair valued. |
| 7 | Rate shown is the yield to
maturity as of December 31, 2005. |
| 8 | Cost for federal income
purposes is $211,400,414. The net unrealized depreciation on a tax basis is
$5,651,387, consisting of $3,203,169 gross unrealized appreciation and
$8,854,556 gross unrealized depreciation. |

A category in the Corporate Bonds section may contain multiple industries as defined by the SECs Standard Industry Codes.

KEY TO ABBREVIATIONS EUR European Monetary Unit

PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2005

BlackRock Preferred Opportunity Trust (BPP)

Rating 1 (unaudited)			Description	Value
			LONG-TERM INVESTMENTS145.0%
			Preferred Securities65.0%
			Consumer Products0.5%
BBB-	20,000	2	Dairy Farmers of
America, Inc., 7.875%	$ 2,003,750
			Energy4.1%
BB+	5,000		Devon Energy
Corp., Ser. A, 6.49%	501,250
A-	50,000		Gulf Power Co.,
Ser. 1, 6.00%	5,150,000
B-	115,000		Hanover
Compressor Cap. Trust, 7.25%, expires 12/14/29, price $17.875, 2.7972 shares	5,575,430
Baa3	275,000		Nexen, Inc.,
7.35%	7,097,750
				18,324,430
			Financial Institutions46.5%
A3	600		ABN Amro NA,
Inc., 6.46%	642,000
Baa2	300,000		ACE Ltd., Sec. C,
7.80%	7,818,750
BBB-	405,000		Axis Capital
Holdings Ltd., Ser. A, 7.25%	9,639,000
A2	30,000		Banesto Hldgs.
Ltd., Ser. A, 10.50%	955,312
A	100,000		Bear Stearns Co.,
Inc., Ser. E, 6.15%	5,053,130
B1	60,000		Chevy Chase
Preferred Cap. Corp., Ser. A, 10.375%	3,335,400
A-	100,000		CIT Group, Inc.,
6.35%	2,580,000
A3	23,600		Citigroup Cap. I
, 6.75%	592,360
AA	40,000		Citigroup Cap. X,
6.10%	974,000
AA	50,000		Citigroup Cap. XI
, 6.00%	1,220,500
BB	80,000		Colonial Cap.
Trust IV, 7.875%	2,048,000
			Credit Suisse
First Boston, Inc.,
Aa3	11,100		6.25%	273,171
Aa3	12,300		7.00%	308,654
BB+	200,000		Endurance
Specialty Holdings, Ltd., 7.75%	4,740,000
BBB+	72,500		Everest Re Cap.
Trust, 7.85%	1,844,219
BBB+	30,000		Everest Re Cap.
Trust II, Ser. B, 6.20%	666,000
			Federal Home Loan
Mortgage Corp.,
AA-	96,150		Ser. F, 5.00%	4,172,910
AA-	27,958		Ser. H, 5.10%	1,202,194
AA	15,200		Financial
Security Assurance Holdings Ltd., 5.60%	341,848
			First Republic
Bank,
BBB-	185,000		6.25%	4,427,050
BBB-	277,200		6.70%	6,869,376
BBB-	120,000		First Republic
Preferred Cap. Corp., 7.25%	3,000,000
Aa3	85,000		Fleet Cap. Trust
VII, 7.20%	2,143,700
Aa3	26,100		Fleet Cap. Trust
VIII, 7.20%	663,462
			Goldman Sachs
Group, Inc.,
A+	200,000		Ser. B, 6.20%	4,980,000
Aa3	102,900		6.00%	2,453,527
			ING Groep NV,
A	76,700		7.05%	1,960,644
A	560,337		7.20%	14,383,851
A1	80,000		JP Morgan Chase
Cap. XII, 6.25%	1,987,504
A3	117,200		KeyCorp Cap. V,
5.875%	2,750,543
A	263,400		Lehman Brothers
Holdings Cap. Trust III, Ser. K, 6.375%	6,535,612
A	90,000		Lehman Brothers
Holdings Cap. Trust IV, Ser. L, 6.375%	2,252,700
			Lehman Brothers
Holdings, Inc.,
A	31,100		Ser. D, 5.67%	1,491,830
A	150,000		Ser. M, 6.50%	3,975,000
A+	200,000		Merrill Lynch
& Co., Inc., Ser. 3, 6.375%	5,112,500
A+	20,000		Merrill Lynch
Preferred Cap. Trust III, 7.00%	508,126
A+	86,900		Merrill Lynch
Preferred Cap. Trust V, 7.28%	2,269,828
A-	625,000		MetLife, Inc.,
Ser. B, 6.50%	16,200,000
A1	187,000		Morgan Stanley
Cap. Trust III, 6.25%	4,547,840
BBB	7,200		News Corp. Ltd.,
The, Ser. 9, Class 1, 8.125%	181,800
A	209,400		Partnerre Ltd.,
Ser. C, 6.75%	5,084,504
BBB	79,385		Phoenix Companies
Inc., The, 7.45%	1,992,563
BBB+	18,400		PLC Cap. Trust
IV, 7.25%	464,600

See Notes to Financial Statements.

BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating 1 (unaudited)			Description	Value
			Financial Institutions(contd)
A-	409,975	3	Principal
Financial Group, 6.518%	$ 10,915,584
BBB	371,725		Renaissancere
Holdings Ltd., Ser. B, 7.30%	8,889,561
BBB-	30		Roslyn Real
Estate Asset Corp., Ser. C, 8.95%	3,054,750
AA-	375,000		Royal Bank of
Scotland Group PLC, ADR, 6.35%	9,423,750
			Safeco Cap. Trust
I,
Baa2	4,100		8.072% (CORTS)	108,322
Baa2	23,600		8.25% (SATURNS)	606,011
Baa2	2,000		8.375% (CORTS)	53,480
Baa2	14,700		8.70% (CORTS)	411,894
Baa2	35,700		8.75% (CORTS)	1,033,515
A-	5,000		SLM Corp., Ser.
A, 6.97%	265,938
A-	50,600		Sprint Corp.,
7.00%	1,257,916
A-	103,439		Structured
Repackaged Asset-Backed Trust Securities, 6.50%	2,508,396
A	60	2	Union Planters
Preferred Funding Corp., 7.75%	7,217,100
BBB-	11,100		Valero Energy
Corp., 7.25%	284,271
A2	404,400		Wachovia
Preferred Funding Corp., Ser. A, 7.25%	11,285,308
Baa1	5,200		Washington Mutual
Cap. I, 7.65%	131,463
Baa1	143,865		Zions Cap. Trust,
8.00%	3,727,010
Baa2	2,000	2,3	Zurich Regcaps
Funding Trust, 6.58%	2,074,220
				207,892,497
			Media1.4%
Baa1	253,100		AOL Time Warner,
Inc., Ser. A-1, 7.625%	6,459,112
			Real Estate12.5%
BBB-	305		BRE Properties,
Ser. D, 6.75%	7,523,754
BBB-	78,888		CarrAmerica
Realty Corp., Ser. E, 7.50%	1,984,033
BBB-	120,000		Developers
Diversified Realty Corp., 7.375%	2,958,756
			Duke Realty
Corp.,
BBB	90,000		Ser. J, 6.625%	2,216,700
BBB	160,800		Ser. K, 6.50%	3,879,300
BBB+	322,000		Kimco Realty Corp.,
Ser. F, 6.65%	8,251,250
BBB+	255,200		NB Capital Corp.,
8.35%	6,765,352
			Regency Centers
Corp.,
BBB	75,000		6.70%	1,830,473
BBB	324,000		7.45%	8,353,141
Aa3	30	2	Sun Trust Real
Estate Investment Corp., 9.00%	3,960,000
A-	320,000		Weingarten Realty
Investors, Ser. D, 6.75%	8,243,200
				55,965,959
			Total Preferred
Securities	290,645,748
Principal Amount (000)
			Trust Preferred Securities35.9%
			Energy1.8%
BB+	$ 3,000		HL&P Cap.
Trust II, 8.257%, 2/01/37	3,022,500
BBB-	4,655		K N Cap. Trust
III, 7.63%, 4/15/28	5,153,890
				8,176,390
			Financial Institutions31.4%
Ba2	4,500		AFC Cap. Trust I,
8.207%, 2/03/27	4,761,814
A2	6,000	2	AgFirst Farm
Credit Bank, 7.30%, 10/14/49	6,250,500
BBB	5,500		AON Corp.,
8.205%, 1/01/27	6,538,400
BBB	5,000		Astoria Cap.
Trust 1, 9.75%, 11/01/29	5,794,500
A3	9,774		AXA SA, 7.10%,
5/29/49 (France)	10,050,636
A+	3,557		BNP Paribas Cap.
Trust V, 7.20%, 12/31/49	3,650,549
A1	5,500		California
Preferred Funding Trust, 7.00%, 1/30/49	5,685,900
BBB-	1,100		Colonial Cap.
Trust II, 8.92%, 1/15/27	1,173,810

See Notes to Financial Statements.

BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating 1 (unaudited)			Description	Value
			Financial Institutions(contd)
A1	$ 3,000		Credit Agricole
Preferred Fund Trust II, 7.00%, 8/29/49	$ 3,090,000
A+	14,500	2,3	Deutsche Bank
Cap. Funding, 7.872%, 12/29/49	15,657,390
A-	8,000	2	Dresdner Funding
Trust I, 8.151%, 6/30/31	9,939,760
Baa2	1,100		FCB/NC Cap. Trust
I, 8.05%, 3/01/28	1,169,828
A3	5,000		Greenpoint Cap.
Trust I, 9.10%, 6/01/27	5,460,450
A1	5,000		HBOS Cap. Funding
LP, 6.85%, 3/29/49	5,081,500
AA-	200		HSBC Holdings
PLC, 6.20%, (United Kingdom)	4,928,000
BBB-	1,400		HUBCO Cap. Trust
I, 8.98%, 2/01/27	1,522,192
BBB-	3,000		HUBCO Cap. Trust
II, 7.65%, 6/15/28	3,210,000
A1	1,000		JPM Cap. Trust
II, 7.95%, 2/01/27	1,065,378
BBB+	10,000	2,3	Mangrove Bay
Pass-Through Trust, 6.102%, 7/15/33	9,923,800
BB+	3,145		Markel Cap. Trust
I, 8.71%, 1/01/46	3,333,983
Aa3	1		Morgan Stanley,
7.05%, 4/01/32	33,191
A2	2,000		NBP Capital Trust
III, 7.375%, 10/29/49	2,105,000
A3	3,000		North Fork Cap.
Trust II, 8.00%, 12/15/27	3,249,750
BBB+	5,000		Old Mutual Cap.
Funding, 8.00%, 5/29/49 (United Kingdom)	5,256,500
A1	3,000		RBS Cap. Trust,
6.80%, 12/31/49 (United Kingdom)	3,050,878
A+	4,600	2	State Street
Institutional Capital A, 7.94%, 12/30/26	4,884,832
A+	7,500	2	Sun Life of
Canada US Cap. Trust I, 8.526%, 5/29/49	8,042,475
BBB-	5,000	2	Webster Cap.
Trust I, 9.36%, 1/29/27	5,354,150
				140,265,166
			Real Estate2.7%
BB+	8,180	2	Sovereign Real
Estate Investor Corp., 12.00%, 8/29/49	11,861,000
			Total Trust
Preferred Securities	160,302,556
			Corporate Bonds44.1%
			Automotive0.8%
B-	100		Accuride Corp.,
8.50%, 2/01/15	98,500
BB+	75		ArvinMeritor,
Inc., 8.75%, 3/01/12	72,000
B-	130		Goodyear Tire
& Rubber Co., 7.857%, 8/15/11	127,075
CCC+	250	3	Metaldyne Corp.,
10.00%, 11/01/13	230,000
BB	100		Navistar Intl.
Corp., 7.50%, 6/15/11	95,000
B-	2,850		Rexnord Corp.,
10.125%, 12/15/12	3,070,875
				3,693,450
			Basic Materials1.4%
B-	100	2	BCI US Finance
Corp./Borden 2 Nova Scotia Finance ULC, 10.10%, 7/15/10	101,875
B-	2,145		Caraustar
Industries, Inc., 9.875%, 4/01/11	2,187,900
B+	200		Donohue Forest
Products, 7.625%, 5/15/07 (Canada)	206,250
BB-	2,700		Lyondell Chemical
Co., 11.125%, 7/15/12	3,030,750
B3	450		NewPage Corp.,
10.00%, 5/01/12	443,250
B-	100	2	PQ Corp., 7.50%,
2/15/13	93,250
BBB-	190	2	Southern Peru
Copper Corp., 7.50%, 7/27/35	187,862
				6,251,137
			Building & Development1.4%
B-	75	2	Ahern Rentals,
Inc., 9.25%, 8/15/13	77,906
B2	260	2	Compression
Polymers Corp., 10.50%, 7/01/13	252,200
B-	790	2	Goodman Global
Holding Co., Inc., 7.875%, 12/15/12	734,700
			K Hovnanian
Enterprises, Inc.,
BB+	3,250		6.25%, 1/15/15	3,038,750
BB+	2,000		6.25%, 1/15/16	1,860,000
B	170		North American
Energy Partners, Inc., 9.00%, 6/01/10 (Canada)	176,800
				6,140,356
			Consumer Products3.7%
B3	115		ALH Finance LLC,
8.50%, 1/15/13	108,100
B1	3,000		Cenveo Corp.,
9.625%, 3/15/12	3,232,500
BB+	8,500		Delhaize America,
Inc., 8.125%, 4/15/11	9,271,375
B3	320		Finlay Fine
Jewelry Corp., 8.375%, 6/01/12	288,000
B2	110		Gold Kist, Inc.,
10.25%, 3/15/14	122,100
B-	140	2	Knowledge
Learning Corp., Inc., 7.75%, 2/01/15	133,000
B-	1,260		Lazydays RV
Center, Inc., 11.75%, 5/15/12	1,278,900

See Notes to Financial Statements.

BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating 1 (unaudited)			Description
			Consumer Products(contd)
B	$ 460	3	Levi Strauss
& Co., 9.28%, 4/01/12	$ 463,450
B3	860		Movie Gallery,
Inc., 11.00%, 5/01/12	670,800
BB-	300	2	Quiksilver, Inc.,
6.875%, 4/15/15	288,750
B-	750	2,3	Rite Aid Corp.,
6.125%, 12/15/08	705,000
				16,561,975
			Containers & Packaging0.1%
B1	385	2	Crown Americas
LLC and Crown Americas Capital Corp., 7.75%, 11/15/15	398,475
			Ecological Services & Equipment0.1%
BB-	290		Allied Waste
North America, 5.75%, 2/15/11	274,050
			Energy3.0%
BB	3,000		AES Corp.,
8.875%, 2/15/11	3,240,000
B2	620		Aquila Finance
Corp., 7.75%, 6/15/11 (Canada)	637,050
B-	45	2,3,4	Calpine Corp.,
8.50%, 7/15/10	36,788
B	220	2	Chaparral Energy,
Inc., 8.50%, 12/01/15	227,700
BB	30	2	Chesapeake Energy
Corp., 6.875%, 11/15/20	30,075
B-	285		Clayton Williams
Energy, Inc., 7.75%, 8/01/13	273,600
BB-	85		CMS Energy Corp.,
8.50%, 4/15/11	92,650
BB-	210		Compagnie
Generale de Geophysique SA, 7.50%, 5/15/15 (France)	216,300
B	130	2	Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	131,300
B2	710		Dresser, Inc.,
9.375%, 4/15/11	747,275
B+	1,190	2	Dynegy Holdings,
Inc., 10.125%, 7/15/13	1,344,700
B	50		Encore
Acquisition Co., 7.25%, 12/01/17	49,500
B	120	2	Hilcorp Energy I
LP/Hilcorp Finance Corp., 7.75%, 11/01/15	122,100
B+	19		Midwest
Generation LLC, 8.56%, 1/02/16	20,579
B2	50		Mirant Americas
Generation LLC, 8.30%, 5/01/11	63,250
B-	130	2	Ocean Rig AS,
8.375%, 7/01/13	138,125
B2	2,950		Orion Power
Holdings, Inc., 12.00%, 5/01/10	3,333,500
			Reliant Energy,
Inc.,
BB-	295		6.75%, 12/15/14	258,125
BB-	50		9.25%, 7/15/10	50,125
B2	420	2	Targa Resources,
Inc., 8.50%, 11/01/13	431,550
B2	55	2	Whiting Petroleum
Corp., 7.00%, 2/01/14	55,137
BB	2,000		Williams Cos.,
Inc., 7.125%, 9/01/11	2,080,000
				13,579,429
			Entertainment & Leisure0.2%
B3	510	2	Greektown
Holdings LLC, 10.75%, 12/01/13	506,175
B	130		Poster Financial
Group, Inc., 8.75%, 12/01/11	134,225
B+	130	2	San Pasqual
Casino, 8.00%, 9/15/13	130,650
B+	190		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	185,250
				956,300
			Financial Institutions26.7%
Aa3	9,605	2,5	American General
Institute Cap., 7.57%, 12/01/45	11,813,189
BB	415	2	American Real Estate
Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	413,962
Aa3	5,000		BAC Capital Trust
V, 5.625%, 3/08/35	4,919,550
AA	5,000	2,3	Barclays Bank
PLC, 6.86%, 9/29/49 (United Kingdom)	5,571,350
B3	300		BCP Crystal US
Holdings Corp., 9.625%, 6/15/14 (Luxembourg)	333,750
B-	70	2,3	Borden US Finance
Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14	69,388
BB	1,000		Crum &
Forster Holdings Corp., 10.375%, 6/15/13	1,055,000
			E*Trade Financial
Corp.,
B+	125	2	7.375%, 9/15/13	126,563
B+	170		7.875%, 12/01/15	175,525
BB	5,000		Fairfax Financial
Holdings Ltd., 7.75%, 4/26/12 (Canada)	4,687,500
BBB	11,500		First Midwest
Cap. Trust I, 6.95%, 12/01/33	12,725,670
BB+	125		Ford Motor Credit
Co., 7.25%, 10/25/11	107,985
AA-	7,000		HSBC Bank USA,
Inc., 5.875%, 11/01/34	7,133,140
AA-	10,000	2,3	HSBC Capital
Funding LP, 4.61%, 12/29/49 (Jersey)	9,423,100
A1	5,000		JP Morgan Chase
Capital XVII, 5.85%, 8/01/35	4,972,850
BBB-	5,000		Kingsway America,
Inc., 7.50%, 2/01/14	5,145,250
A+	7,399		Lloyds Bank Ltd.,
6.90%, 10/10/49 (United Kingdom)	7,519,604

See Notes to Financial Statements.

BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating 1 (unaudited)			Description
			Financial Institutions(contd)
B-	$ 340	2	Nell AF SARL,
8.375%, 8/15/15 (Luxembourg)	$ 336,600
A	8,000		Prudential,
6.50%, 6/29/49 (United Kingdom)	7,910,000
BBB+	5,000		Reinsurance Group
of America, Inc., 6.75%, 12/15/65	5,052,450
A3	4,000		Resparcs Funding
LP, 8.00%, 12/30/49 (Hong Kong)	4,130,000
A	5,000	2,3	Skandinaviska
Enskilda Banken AB, 5.471%, 3/29/49	4,993,750
Ba1	2,000		Sovereign Capital
Trust 1, 9.00%, 4/01/27	2,145,620
B-	30		Standard Aero
Holdings, Inc., 8.25%, 9/01/14	24,825
AA+	4,051	3	Structured Asset
Receivable Trust, 1.649%, 1/21/10	4,057,530
AA	10,000	3	UBS Preferred
Funding Trust, 8.622%, 10/29/49	11,439,080
B-	60	3	Universal City
Florida Holding Co. I/II, 9.00%, 5/01/10	60,000
BB-	60		Western Financial
Bank, 9.625%, 5/15/12	67,050
A2	3,000	2,3	Westpac Capital
Trust IV, 5.256%, 12/29/49	2,928,570
				119,338,851
			Health Care0.3%
B	530	2,3	Insight Health
Services Corp., 9.174%, 11/01/11	507,475
			Tenet Healthcare
Corp.,
B	90		6.375%, 12/01/11	82,350
B	90		9.875%, 7/01/14	91,350
B-	520		Universal
Hospital Services, Inc., 10.125%, 11/01/11	540,800
				1,221,975
			Industrials1.1%
B+	210		Celestica, Inc.,
7.625%, 7/01/13 (Canada)	206,325
B-	90	2	Chart Industries,
Inc., 9.125%, 10/15/15	92,025
B-	1,770		DI
Finance/DynCorp. Intl., 9.50%, 2/15/13	1,840,800
B-	300		ERICO Intl.
Corp., 8.875%, 3/01/12	309,750
CCC+	400	2	Hydrochem
Industrial Services, 9.25%, 2/15/13	384,000
CCC+	2,395		Trimas Corp.,
9.875%, 6/15/12	1,987,850
				4,820,750
			Media1.9%
B-	200		Allbritton
Communications Co., 7.75%, 12/15/12	201,250
B3	200	3	Cablevision
Systems Corp., 8.716%, 4/01/09	203,000
BBB	110		Comcast Corp.,
Zero Coupon, 11/15/29	5,032,390
B	1,950		Dex Media West
LLC/Dex Media Finance Co., 9.875%, 8/15/13	2,162,062
B2	220	2	Network
Communications, Inc., 10.75%, 12/01/13	220,275
B3	270		Nexstar Finance,
Inc., 7.00%, 1/15/14	247,388
B2	350	2,3	Paxson
Communications Corp., 7.777%, 1/15/12	348,250
B2	280	5	Primedia, Inc,
9.715%, 5/15/10	271,600
				8,686,215
			Real Estate1.5%
			Rouse Co.,
BB+	5,000		3.625%, 3/15/09	4,648,450
BB+	2,000		5.375%, 11/26/13	1,902,760
				6,551,210
			Technology0.4%
B+	120	2	Hynix
Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)	130,050
BB-	185		Lucent
Technologies, Inc., 6.50%, 1/15/28	155,863
B2	110		MagnaChip
Semiconductor SA/Magna Semiconductor Finance Co., 8.00%, 12/15/14
(Luxembourg)	104,775
BB	60		STATS ChipPAC
Ltd., 7.50%, 7/19/10 (Singapore)	60,300
			Sungard Data
Systems, Inc.,
B-	140	2,3	8.525%, 8/15/13	145,950
B-	350	2	9.125%, 8/15/13	364,000
B-	320	2	10.25%, 8/15/15	321,600
B	460		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	455,400
B-	80		UGS Corp.,
10.00%, 6/01/12	87,600
				1,825,538
			Telecommunications1.0%
BB-	290		Cincinnati Bell,
Inc., 7.25%, 7/15/13	300,875
B3	190	2,3	Hawaiian Telcom
Communications, Inc., 9.948%, 5/01/13	181,450

See Notes to Financial Statements.

BlackRock Preferred Opportunity Trust (BPP) (continued)

Rating 1 (unaudited)			Description
			Telecommunications(contd)
			Intelsat Ltd., (Bermuda)
Caa1	$ 200		5.25%, 11/01/08	$ 181,000
B2	85	2	8.25%, 1/15/13	85,000
B2	355	2	8.625%, 1/15/15	358,550
B2	365	2,3	9.614%, 1/15/12	370,475
BB-	30		Lucent Technologies, Inc., 6.45%, 3/15/29	25,575
B-	80		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)	71,600
			Qwest Corp.,
BB+	460	2,3	7.741%, 6/15/13	497,950
BB+	1,845		7.875%, 9/01/11	1,987,987
B3	420	2	Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	437,850
				4,498,312
			Transportation0.5%
B	90		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	91,125
BB-	395	2	Hertz Corp., 8.875%, 1/01/14	402,900
B3	32		Horizon Lines LLC, 9.00%, 11/01/12	33,680
B+	80		OMI Corp., 7.625%, 12/01/13 (Marshall Island)	80,900
B	1,910		Sea Containers Ltd., 10.50%, 5/15/12	1,895,675
				2,504,280
			Total Corporate Bonds	197,302,303
			Total Long-Term Investments (cost $635,882,737)	648,250,607
			SHORT-TERM
INVESTMENT3.1%
			U.S.
Government and Agency Security3.1%
	14,000	6	FNMA Discount Note, 3.50%, 1/03/06 (cost $13,997,278)	13,997,278
			Total investments before borrowed
bonds and investments sold short
			(cost $649,880,014 7 )	662,247,885
			BORROWED
BONDS2.7%
	51	8	U.S. Treasury Bonds, 2.35%, 1/04/06	50,513
	12,073	8	U.S. Treasury Notes, 3.50%, 1/03/06-1/04/06	12,072,750
			Total
Borrowed Bonds (cost
$12,123,263)	12,123,263
			INVESTMENTS
SOLD SHORT(2.7)%
	(45)		U.S. Treasury Bonds, 5.375%, 2/15/31	(50,605	)
			U.S. Treasury Notes,
	(7,500)		4.25%, 10/15/10	(7,462,500	)
	(4,550)		4.50%, 11/15/15	(4,589,084	)
			Total Investments Sold Short (proceeds received $12,010,577)	(12,102,189	)
			Total
investments net of borrowed bonds and investments sold short148.1%	$ 662,268,959
			Other assets in excess of liabilities1.3%	5,798,991
			Preferred shares at redemption value, including
dividends payable(49.4)%	(220,878,008	)
			Net Assets 100%	$ 447,189,942

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Security is not registered
under the Securities Act of 1933. These securities may be resold in
transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of December 31, 2005, the Trust held 29.9% of its
net assets, with a current market value of $133,820,567, in securities
restricted as to resale. |
| 3 | Rate shown is interest rate
as of December 31, 2005. |
| 4 | Issuer is in default and/or
bankruptcy. |
| 5 | Securities, or a portion
thereof, pledged as collateral with a value of $3,074,750 on 160 short U.S.
Treasury Note futures contracts expiring March 2006 and 524 short U.S.
Treasury Bond futures contracts expiring March 2006. The notional value of
such contracts on December 31, 2005 was ($77,339,250), with an unrealized
loss of $1,484,963. |
| 6 | Rate shown is the yield to
maturity as of December 31, 2005. |
| 7 | Cost for Federal income tax
purposes is $650,051,896. The net unrealized appreciation on a tax basis is
$12,140,735, consisting of $17,156,333 gross unrealized appreciation and
$4,960,344 gross unrealized depreciation. |
| 8 | The interest rate and
maturity date shown represent the terms of the bonds borrowed transaction,
not the security borrowed (see Note 1). |

| 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.

S TATEMENTS OF ASSETS AND LIABILITIES
December 31, 2005

		Global Floating Rate Income Trust (BGT)
Assets
Investments at value 1		$ 713,275,629	$	205,749,027	$	662,247,885
Cash		828,319		68,697		2,111,729
Foreign currency at value 2		3,484,883
Receivable from investments sold		5,723,742
Variation margin receivable						158,501
Unrealized gain on foreign currency exchange contracts		388,125		35,926
Deposits with brokers as collateral for borrowed bonds						12,123,263
Interest receivable		7,696,040		4,275,289		5,814,688
Unrealized appreciation on interest rate swaps						1,362,527
Investments in affiliates		25,624		2,881		61,969
Other assets		19,243		5,979		19,177
		731,441,605		210,137,799		683,899,739
Liabilities
Payable for investments purchased		35,224,619
Investments sold short at value 3						12,102,189
Loan payable				66,000,000
Interest payable				194,713		121,508
Unrealized loss on foreign currency exchange contracts		207,169
Dividends payablecommon shares		2,700,317		1,117,114		3,050,969
Investment advisory fee payable		324,552		130,965		368,655
Deferred Trustees fees		25,624		2,881		61,969
Payable to affiliates		37,345
Other accrued expenses		165,849		234,818		126,499
		38,685,475		67,680,491		15,831,789
Preferred
Shares at Redemption Value
$0.001 par value per share and $25,000 liquidation value per
share, including dividends payable 4		243,537,266				220,878,008
Net
Assets Applicable to Common Shareholders		$ 449,218,864	$	142,457,308	$	447,189,942
Composition of Net Assets Applicable to Common
Shareholders:
Par value		$ 23,481	$		$	18,306
Paid-in capital in excess of par		444,771,968		402,401,094		433,529,217
Undistributed (distributions in excess of) net
investment income		(341,283	)	(505,133	)	90,975
Accumulated net realized gain (loss)		(274,479	)	(254,368,302	)	1,397,605
Net unrealized appreciation
(depreciation)		5,039,177		(5,070,351	)	12,153,839
Net assets applicable to common shareholders, December 31,
2005		$ 449,218,864	$	142,457,308	$	447,189,942
Net asset value per common share 5		$ 19.13	$	2.61	$	24.43
1	Investments at cost	$ 708,437,371	$	210,855,269	$	649,880,014
2	Foreign currency at cost	3,479,849
3	Proceeds received					12,010,577
4	Preferred shares outstanding	9,738				8,832
5	Common shares outstanding	23,481,021		54,493,341		18,305,777

See Notes to Financial Statements.

STATEMENTS OF OPERATIONS
For the year ended December 31, 2005

	Global Floating Rate Income Trust (BGT)
Investment Income
Interest income	$ 44,071,722	$	17,328,976	$	26,457,468
Dividend income			148,103		19,180,085
Income from affiliates	1,241		77		4,645
Total investment income	44,072,963		17,477,156		45,642,198
Expenses
Investment advisory	5,294,734		1,566,881		4,456,570
Transfer agent	18,324		25,280		14,965
Custodian	278,248		71,416		130,472
Reports to shareholders	114,687		51,166		118,915
Directors/Trustees	56,691		26,982		54,502
Registration	19,693		51,251		21,250
Independent accountants	60,826		64,350		59,227
Legal	88,931		72,157		80,143
Insurance	49,209		19,736		43,668
Auction agent	629,661				577,571
Deferred Trustees fees	1,241		77		4,645
Miscellaneous	69,055		79,612		79,794
Total expenses excluding interest expense	6,681,300		2,028,908		5,641,722
Interest expense	351,973		2,454,816		1,344,842
Total expenses	7,033,273		4,483,724		6,986,564
Less fees waived by Advisor	(1,411,929	)
Less fees paid indirectly	(72,857	)	(7,996	)	(13,967	)
Net expenses	5,548,487		4,475,728		6,972,597
Net investment income	38,524,476		13,001,428		38,669,601
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments	(43,510	)	(754,008	)	7,812,429
Foreign currency	(690,363	)	110,906
Futures					(2,741,607	)
Interest rate swaps					(2,057,611	)
Short sales					(641,661	)
	(733,873	)	(643,102	)	2,371,550
Net change in unrealized appreciation/depreciation
on:
Investments	(3,571,502	)	(11,607,552	)	(19,188,348	)
Foreign currency	252,623		35,891
Futures					349,369
Interest rate swaps					1,038,668
Short sales					345,857
	(3,318,879	)	(11,571,661	)	(17,454,454	)
Net loss	(4,052,752	)	(12,214,763	)	(15,082,904	)
Dividends and Distributions to Preferred Shareholders from:
Net investment income	(7,702,674	)			(4,681,820	)
Net realized gains	(22,268	)			(2,471,709	)
Total dividends and
distributions	(7,724,942	)			(7,153,529	)
Net
Increase in Net Assets Applicable to Common Shareholders Resulting from
Operations	$ 26,746,782	$	786,665	$	16,433,168

See Notes to Financial Statements.

S TATEMENTS OF CASH FLOWS
For the year ended December 31, 2005

Reconciliation of Net Increase in Net Assets Resulting from Operations to Net Cash Provided by Operating Activities — Net increase in net assets resulting from operations	Global Floating Rate Income Trust (BGT) — $ 26,746,782	$	786,665	$	16,433,168
Purchases of long-term investments	(335,698,253	)	(239,073,932	)	(514,220,555	)
Proceeds from sales of long-term investments	347,638,653		242,166,246		524,679,038
Increase (Decrease) in short-term investments	8,509,300		(61,096	)	5,179,586
Amortization of premium and discounts on investments	995,229		432,716		1,147,567
Net realized loss (gain) on investments	(132,006	)	754,008		(7,812,429	)
Increase in unrealized appreciation/depreciation	3,571,502		11,607,552		19,188,348
Decrease in investments sold short					(1,401,686	)
(Increase) Decrease in investments in affiliates	(23,529	)	231,811		(27,599	)
Net effect of exchange rates on foreign currency	757,369
(Increase) Decrease in receivable for investments sold	(5,271,376	)	808,195
Increase in interest rate swaps					(1,038,668	)
Decrease in deposits with brokers as collateral for borrowed
bonds					1,673,612
Increase in variation margin receivable					(915,126	)
Increase in receivable for open forward foreign currency
contacts	(238,439	)	(35,926	)
Increase (Decrease) in income receivable	(2,093,047	)	(315,212	)	745,849
Decrease in other assets	18,614		101,296		437
Decrease in interest payable			50,412		(1,214,771	)
Increase (Decrease) in payable for investments purchased	(14,151,227	)
Decrease in investment advisory fee payable	(322	)	(5,035	)	(14,922	)
Increase (Decrease) in deferred Directors/Trustees
fees	23,529		(234,692	)	27,599
Increase in payable to affiliates	28,752
Decrease in accrued expenses	(281,345	)	(126,624	)	(7,303	)
Total adjustments	3,653,404		16,299,719		25,988,977
Net cash flows provided by operating activities	$ 30,400,186	$	17,086,384	$	42,422,145
Increase
(Decrease) in Cash and Foreign Currency
Net cash flows provided by operating activities	$ 30,400,186	$	17,086,384	$	42,422,145
Cash used for financing activities:
Offering costs relating to the issuance of
preferred shares	81,708				8,740
Reinvestment of common dividends			840,842
Increase in loan payable			(3,000,000	)
Increase in preferred shares at redemption value
including dividends
payable	51,560				46,154
Cash dividends paid to common
shareholders	(28,227,405	)	(15,681,635	)	(43,060,935	)
Net cash used for financing activities	(28,094,137	)	(17,840,793	)	(43,006,041	)
Net increase (decrease) in cash	2,306,049		(754,409	)	(583,896	)
Cash and foreign currency at beginning of
year	2,007,153		823,106		2,695,625
Cash and foreign currency at end of year	$ 4,313,202	$	68,697	$	2,111,729

See Notes to Financial Statements.

STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31, 2005 and for the period 1 ended
December 31, 2004

| | Global
Floating Rate Income Trust (BGT) — 2005 | | 2004 | | High
Income Shares (HIS) — 2005 | | 2004 2 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Increase
in Net Assets Applicable to Common Shareholders | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment income | $ 38,524,476 | | $ 7,644,992 | | $ 13,001,428 | | $ 14,823,261 | |
| Net realized gain (loss) | (733,873 | ) | 104,561 | | (643,102 | ) | (1,468,607 | ) |
| Net change in unrealized
appreciation/depreciation | (3,318,879 | ) | 8,358,056 | | (11,571,661 | ) | 2,948,471 | |
| Dividends and distributions to preferred
shareholders from: | | | | | | | | |
| Net investment income | (7,702,674 | ) | (945,917 | ) | | | | |
| Net realized gains | (22,268 | ) | | | | | | |
| Net increase in net assets applicable to common shareholders
resulting
from operations | 26,746,782 | | 15,161,692 | | 786,665 | | 16,303,125 | |
| Dividends
and Distributions to Common Shareholders from: | | | | | | | | |
| Net investment income | (28,572,525 | ) | (8,763,117 | ) | (14,468,525 | ) | (16,001,963 | ) |
| Net realized gains | (164,417 | ) | | | | | | |
| Total dividends and distributions | (28,736,942 | ) | (8,763,117 | ) | (14,468,525 | ) | (16,001,963 | ) |
| Capital
Share Transactions: | | | | | | | | |
| Net proceeds from the issuance of common
shares | | | 438,510,001 | | | | | |
| Net proceeds from the underwriters
over-allotment option exercised | | | 9,053,500 | | | | | |
| Offering costs relating to preferred
shares | 81,708 | | (2,834,760 | ) | | | | |
| Reinvestment of common dividends | | | | | 840,842 | | 698,683 | |
| Net proceeds from capital
share transactions | 81,708 | | 444,728,741 | | 840,842 | | 698,683 | |
| Total increase (decrease) | (1,908,452 | ) | 451,127,316 | | (12,841,018 | ) | 999,845 | |
| Net
Assets Applicable to Common Shareholders | | | | | | | | |
| Beginning of period | 451,127,316 | | | | 155,298,326 | | 154,298,481 | |
| End of period | $ 449,218,864 | | $ 451,127,316 | | $ 142,457,308 | | $ 155,298,326 | |
| End of period undistributed (distributions in excess of) net
investment income | $ (476,855 | ) | $ (1,900,197 | ) | $ (792,169 | ) | $ 186,113 | |

| 1 | Commencement of investment
operations for Global Floating Rate Income Trust was August 30, 2004. This
information includes the initial investment by BlackRock Funding, Inc. The
other Trusts statements are for a full year. |
| --- | --- |
| 2 | Audited by other
Independent Registered Public Accounting Firm. |

See Notes to Financial Statements

	Preferred Opportunity Trust (BPP) — 2005	2004
Increase
in Net Assets Applicable to Common Shareholders
Operations:
Net investment income	$ 38,669,601	$	40,552,790
Net realized gain (loss)	2,371,550		12,492,981
Net change in unrealized
appreciation/depreciation	(17,454,454	)	(6,235,228	)
Dividends and distributions to preferred
shareholders from:
Net investment income	(4,681,820	)	(2,900,841	)
Net realized gains	(2,471,709	)	(402,710	)
Net increase in net assets applicable to common shareholders
resulting
from operations	16,433,168		43,506,992
Dividends
and Distributions to Common Shareholders from:
Net investment income	(31,788,280	)	(36,611,627	)
Net realized gains	(11,272,655	)	(1,328,999	)
Total dividends and distributions	(43,060,935	)	(37,940,626	)
Capital
Share Transactions:
Net proceeds from the issuance of common
shares
Net proceeds from the underwriters
over-allotment option exercised
Offering costs relating to preferred
shares	8,740
Reinvestment of common dividends
Net proceeds from capital share transactions	8,740
Total increase (decrease)	(26,619,027	)	5,566,366
Net Assets Applicable to Common Shareholders
Beginning of period	473,808,969		468,242,603
End of period	$ 447,189,942	$	473,808,969
End of period undistributed (distributions in excess of) net
investment income	$ 175,514	$	(34,370	)

FINANCIAL HIGHLIGHTS

BlackRock Global Floating Rate Income Trust (BGT)

| | For the
Year Ended December 31, 2005 | | | |
| --- | --- | --- | --- | --- |
| PER SHARE OPERATING
PERFORMANCE: | | | | |
| Net asset value, beginning of period | $ 19.21 | $ | 19.10 | 2 |
| Investment operations: | | | | |
| Net investment income | 1.64 | | 0.33 | |
| Net realized and unrealized
gain (loss) | (0.17 | ) | 0.35 | |
| Dividends and distributions to preferred
shareholders from: | | | | |
| Net investment income | (0.33 | ) | (0.04 | ) |
| Net realized gains | | 3 | | |
| Net increase from investment
operations | 1.14 | | 0.64 | |
| Dividends and distributions to common
shareholders from: | | | | |
| Net investment income | (1.22 | ) | (0.37 | ) |
| Net realized gains | | 3 | | |
| Total dividends and distributions | (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 | $ 19.13 | $ | 19.21 | |
| Market price, end of period | $ 17.16 | $ | 18.63 | |
| TOTAL INVESTMENT
RETURN 4 | (1.34 | )% | (5.00 | )% |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | |
| Total expenses | 1.56 | % | 1.26 | % 6 |
| Net expenses | 1.23 | % | 0.97 | % 6 |
| Net expenses excluding interest
expense | 1.15 | % | 0.97 | % 6 |
| Net investment income before preferred share
dividends | 8.52 | % | 5.04 | % 6 |
| Preferred share dividends | 1.71 | % | 0.62 | % 6 |
| Net investment income available to common
shareholders | 6.81 | % | 4.42 | % 6 |
| SUPPLEMENTAL DATA: | | | | |
| Average net assets (000) | $ 452,179 | $ | 446,660 | |
| Portfolio turnover | 46 | % | 11 | % |
| Net assets applicable to common shareholders,
end of period (000) | $ 449,219 | $ | 451,126 | |
| Preferred shares outstanding (000) | $ 243,450 | $ | 243,450 | |
| Reverse repurchase agreements outstanding, end
of period (000) | $ | $ | | |
| Reverse repurchase agreements average daily
balance (000) | $ 10,722 | $ | 114 | |
| Reverse repurchase agreements weighted average
interest rate | 3.27 | % | 2.24 | % |
| Asset coverage, end of period | $ 71,139 | $ | 71,330 | |

| 1 | Commencement of investment
operations. This information includes the initial investment by BlackRock
Funding, Inc. |
| --- | --- |
| 2 | Net 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. |
| 3 | Amounted 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
Trusts 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. |
| 5 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |
| 6 | Annualized. |

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 Trusts common shares.

See Notes to Financial Statements

FINANCIAL HIGHLIGHTS

BlackRock High Income Shares (HIS)

	Year Ended December 31, — 2005	2004 4		2003 4		2002 4		2001 4
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year	$ 2.87	$	2.86	$	2.42	$	3.05	$	3.88
Investment operations:
Net investment income	0.24		0.28	1	0.32	1	0.36	1	0.55	1
Net realized and unrealized
gain (loss)	(0.23	)	0.03		0.40		(0.62	)	(0.81	)
Net increase (decrease) from investment
operations	0.01		0.31		0.72		(0.26	)	(0.26	)
Dividends and distributions from:
Net investment income	(0.27	)	(0.30	)	(0.28	)	(0.29	)	(0.57	)
Tax return of capital							(0.08	)
Total dividends and distributions	(0.27	)	(0.30	)	(0.28	)	(0.37	)	(0.57	)
Net asset value, end of year	$ 2.61	$	2.87	$	2.86	$	2.42	$	3.05
Market value, end of year	$ 2.33	$	2.90	$	2.87	$	2.32	$	3.36
TOTAL INVESTMENT
RETURN 2	(11.28	)%	12.24	%	37.23	%	(21.23	)%	(6.85	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	3.04	%	2.23	%	2.21	%	2.53	%	3.43	%
Net expenses	3.04	%	2.23	%	2.21	%	2.53	%	3.43	%
Net expense, excluding interest
expense	1.37	%	1.39	%	1.46	%	1.49	%	1.26	%
Net investment income	8.82	%	9.70	%	11.99	%	13.29	%	15.56	%
SUPPLEMENTAL DATA:
Average net assets (000)	$ 147,376	$	152,815	$	143,397	$	144,665	$	174,851
Portfolio turnover	115	%	56	%	93	%	134	%	82	%
Net assets, end of year (000)	$ 142,457	$	155,298	$	154,298	$	129,538	$	161,693
Loan outstanding, end of year (000)	$ 66,000	$	69,000	$	68,000	$	51,000	$	73,800
Asset coverage, end of
year 3	$ 3,158	$	3,251	$	3,269	$	3,540	$	3,191
Loan average daily balance (000)	$ 65,992	$	64,081	$	60,604	$	68,577	$	74,023
Loan weighted average interest rate	3.37	%	2.01	%	1.72	%	2.20	%	5.50	%

| 1 | Net investment income per
share has been recalculated in accordance with SEC requirements, with the
exception that end-of-the-year accumulated undistributed/(overdistributed)
net investment income has not been adjusted to reflect current-year permanent
differences between financial and tax accounting. |
| --- | --- |
| 2 | Total investment return is
calculated assuming a purchase of a share at the current market price on the
first day and a sale at the current market price on the last day of each period
reported. Dividends and distributions, if any, are assumed for purposes of
this calculation to be reinvested at rates obtained under the Trust dividend
reinvestment plan. Total investment returns do not reflect brokerage
commissions. Past performance is not a guarantee of future results. |
| 3 | Per $1,000 of loan
outstanding. |
| 4 | Audited by other Independent
Registered Public Accounting Firm. |

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

The performance set forth in this table is the financial data of BlackRock High Income Shares (formerly CIGNA High Income Shares). BlackRock began managing CIGNA High Income Shares on March 2, 2005.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Preferred Opportunity Trust (BPP)


	Year Ended
December 31,
	2005	2004
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period	$ 25.88	$	25.58	$	23.88	2
Investment operations:
Net investment income	2.11		2.22		1.72
Net realized and unrealized
gain (loss)	(0.82	)	0.33		1.93
Dividends and distributions to
preferred shareholders from:
Net investment income	(0.26	)	(0.16	)	(0.10	)
Net realized gains	(0.13	)	(0.02	)
Net increase from investment
operations	0.90		2.37		3.55
Dividends and distributions to common
shareholders from:
Net investment income	(1.74	)	(2.00	)	(1.66	)
Net realized gains	(0.61	)	(0.07	)
Total dividends and distributions	(2.35	)	(2.07	)	(1.66	)
Capital charges with respect to issuance
of:
Common shares					(0.05	)
Preferred shares					(0.14	)
Total capital charges					(0.19	)
Net asset value, end of period	$ 24.43	$	25.88	$	25.58
Market price, end of period	$ 24.20	$	25.39	$	24.83
TOTAL INVESTMENT
RETURN 3	4.83	%	11.01	%	6.28	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 4
Total expenses	1.51	%	1.44	%	1.52	% 5
Net expenses	1.51	%	1.44	%	1.52	% 5
Net expenses excluding interest
expense	1.22	%	1.19	%	1.16	% 5
Net investment income before preferred share
dividends	8.37	%	8.66	%	8.35	% 5
Preferred share dividends	1.27	%	0.62	%	0.48	% 5
Net investment income available to common
shareholders	7.10	%	8.04	%	7.87	% 5
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(000)	$ 461,868	$	468,110	$	449,345
Portfolio turnover	77	%	88	%	98	%
Net assets applicable to common shareholders,
end of period (000)	$ 447,190	$	473,809	$	468,243
Preferred shares value outstanding, end of
period (000)	$ 220,800	$	220,800	$	220,841
Reverse repurchase agreements outstanding, end
of period (000)	$	$		$	3,486
Reverse repurchase agreements average daily
balance (000)	$ 2,904	$	782	$	19,822
Reverse repurchase agreements weighted average
interest rate	3.07	%	1.50	%	1.44	%
Asset coverage, end of period	$ 75,642	$	78,650	$	78,021

| 1 | Commencement of investment
operations. This information includes the initial investment by BlackRock
Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning
of period, reflects a deduction of $1.12 per share sales charge from the
initial offering price of $25.00 per share. |
| 3 | 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
Trusts 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. |
| 4 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |
| 5 | Annualized. |

See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS

Note 1. Organization & Accounting Policies

BlackRock High Income Shares (High Income) (formerly CIGNA High Income Shares), a Massachusetts business trust, is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the 1940 Act). BlackRock Global Floating Rate Income Trust (Global) and BlackRock Preferred Opportunity Trust (Preferred Opportunity) are organized as Delaware statutory trusts and are registered as non-diversified and diversified, closed-end management investment companies, respectively, under the 1940 Act. Global, High Income and Preferred Opportunity are individually referred to as a Trust and collectively as the Trusts.

The following is a summary of significant accounting policies followed by the Trusts.

Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trusts Board of Trustees or Board of Directors as the case may be (each a Board). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Swap quotations are provided by dealers selected under the supervision of the Board. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value. Investments or assets for which such current market quotations are not readily available are valued at fair value (Fair Value Assets) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trusts Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of a specific identification method, generally first-in, first out, for both financial reporting and Federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Repurchase Agreements: In connection with transactions in repurchase agreements, a Trusts custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Trust may be delayed or limited.

Bank Loans: In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are in addition to interest payments received and may include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees received by a Trust may include covenant waiver fees and covenant modification fees.

Credit Default Swaps: Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by marking-to-market to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract, if any.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Interest Rate Swaps: Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by marking-to-market on a daily basis to reflect the market value of the contract at the end of each days trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Forward Currency Contracts: The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.

Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band to the objectives of the Trusts. Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:

| (i) | market value of investment
securities, other assets and liabilitiesat the 4:00 PM Eastern Standard Time
rates of exchange. |
| --- | --- |
| (ii) | purchases and sales of
investment securities, income and expensesat the rates of exchange
prevailing on the respective dates of such transactions. |

The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.

Net realized and unrealized foreign exchange gains and losses includes realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, maturities of foreign reverse repurchase agreements, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts books and the U.S. dollar equivalent amounts actually received or paid and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Short Sales: The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust makes a short sale, it may borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Trusts may have to pay a fee to borrow the particular securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received.

Bonds Borrowed Agreements: In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trusts third-party broker takes possession of the underlying collateral securities or cash to settle such short positions. The value of the underlying collateral securities or cash approximates the principal amount of the bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed transactions exceed one business day, the value of the collateral with any counterparty is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the lender defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the lender of the security, realization of the collateral by the Trust may be delayed or limited.

Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the Commission) require a Trust to segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trusts intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no federal income tax provisions are required.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-

ryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts Board, non-interested Trustees are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees, these amounts are shown on the Statements of Assets and Liabilities as Investments in affiliates. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.

Note 2. Agreements

Global and Preferred Opportunity each have an Investment Management Agreement with BlackRock Advisors, Inc. (the Advisor), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., (the Sub-Advisor), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Global and Preferred Opportunity. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc.

Effective March 2, 2005, High Income entered into an Investment Management Agreement with the Advisor, and a sub-advisory agreement with the Sub-Advisor. Prior to March 2, 2005, High Income had an Investment Management Agreement with CIGNA Investment Advisors, Inc. (CIAI) and a sub-advisory agreement with Shenkman Capital Management, Inc.

The Investment Management Agreements for Global, High Income and Preferred Opportunity cover both investment advisory and administration services. The investment advisory fee paid to the Advisor by each of Global and Preferred Opportunity is computed weekly and payable monthly based on an annual rate, equal to 0.75% of Globals average weekly net assets and 0.65% of Preferred Opportunitys average weekly managed assets. For Global, the Advisor has voluntarily agreed to waive receipt of a portion of the management fee or other expenses of the Trust in the amount of 0.20% of the average weekly value of the Trusts Managed Assets for the first five years of the Trusts operations (through August 30, 2009) and for a declining amount for an additional three years (through August 30, 2012). High Incomes investment advisory fee paid to the current Advisor and CIAI is/was computed weekly and payable monthly based on an annual rate of 0.75% of the first $200 million of the Trusts average weekly managed assets and 0.50% thereafter. The Advisor, in turn, pays the Sub-Advisor its sub-advisory fee. Managed assets means the total assets of a Trust (including any assets attributable to any borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage).

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs for each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for costs of employees that provide pricing, secondary market support and compliance services to each Trust. Prior to March 2, 2005, for administrative services, High Income reimbursed CIAI for a portion of the compensation and related expenses of the Trusts Treasurer and Secretary and certain persons who assist in carrying out the responsibilities of those offices. For the year ended December 31, 2005, the Trusts reimbursed the Advisor the following amounts:

Trust	Amount
Global	$ 34,905
High Income
Preferred Opportunity	17,502

Pursuant to the terms of their custody agreements, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees.

Note 3. Portfolio Investments

Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the year ended December 31, 2005, aggregated as follows:

Trust	Purchases	Sales
Global	$ 335,698,253	$ 347,638,653
High Income	239,073,932	242,166,246
Preferred Opportunity	416,769,869	431,543,082

Purchases and sales of U.S. government securities for the year ended December 31, 2005, aggregated as follows:

Trust	Purchases	Sales
Preferred Opportunity	$ 97,450,686	$ 93,135,956

Details of open forward currency contracts at December 31, 2005 were as follows:

Trust	Foreign Currency		Contract to Purchase/ Receive	Value at Settlement Date
Global	Bought:
	Euro	01/20/06	6,500,000	$ 7,698,412	$ 7,706,181	$ 7,769
	Sold:
	Canadian Dollar	01/30/06	$ 353,000	$ 304,894	$ 303,039	1,855
	Euro	01/20/06	15,925,700	$ 19,259,473	$ 18,880,972	378,501
	Mexican Peso	01/26/06	$ 58,000,000	$ 5,272,656	$ 5,438,625	(165,969	)
		01/27/06	$ 14,581,921	$ 1,326,138	$ 1,367,338	(41,200	)
						$ 173,187
High Income	Bought:
	Euro	01/20/06	15,554	$ 18,423	$ 18,440	$ 17
	Sold:
	Euro	01/20/06	1,216,034	$ 1,477,608	$ 1,441,699	$ 35,909

Details of open interest rate swaps at December 31, 2005 were as follows:

| 80,000 | 4.495 | %(a) | Floating Rate — 3-month
LIBOR | Termination Date — 10/19/14 | $ 2,342,199 | |
| --- | --- | --- | --- | --- | --- | --- |
| 65,000 | 5.118 | (a) | 3-month
LIBOR | 11/10/15 | (979,672 | ) |
| | | | | | $ 1,362,527 | |

(a) Trust pays fixed interest rate and receives floating rate.

Note 4. Borrowings

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of each Trusts Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement. There were no open reverse repurchase agreements at December 31, 2005.

Loan Payable: High Income has an $80 million revolving credit agreement (the Agreement), which expires on October 31, 2007. Prior to expiration of the Agreement, principal is repayable in whole or in part at the option of the Trust. Borrowings under this Agreement bear interest at a variable rate tied to the lenders average daily cost of funds, or at fixed rates, as may be agreed to between the Trust and the lender. The Trust may borrow up to 33 1 / 3 % of its total assets up to the committed amount or 100% of the borrowing base eligible assets, as determined under the terms of the Agreement. In accordance with the terms of the Agreement, the Trust has pledged its portfolio assets as collateral for the borrowing.

Note 5. Income Tax Information

The estimated tax character of distributions paid during the year ended December 31, 2005, and the tax character of distributions paid during the year ended December 31, 2004, were as follows:

Distributions Paid From:	December 31, 2005 — Ordinary Income	Long-term Gains	Total Distributions
Global	$ 36,326,312	$ 135,572	$ 36,461,884
High Income	14,468,525		14,468,525
Preferred Opportunity	38,101,545	12,112,919	50,214,464

| Distributions
Paid From: | December 31, 2004 — Ordinary Income | Long-term Gains | Total Distributions |
| --- | --- | --- | --- |
| Global | $ 9,709,034 | $ | $ 9,709,034 |
| High Income | 16,001,963 | | 16,001,963 |
| Preferred Opportunity | 37,476,397 | 3,767,780 | 41,244,177 |

As of December 31, 2005, the components of distributable earnings on a tax basis were as follows:

Trust — Global	Undistributed Ordinary Income — $	$	$ 4,329,903
High Income
Preferred Opportunity	42,830	84,538	12,195,989

For federal income tax purposes, the following Trust had capital loss carryforwards at December 31, 2005:

$ 24,744,772	2007
35,363,213	2008
55,878,284	2009
102,576,339	2010
28,467,396	2011
2,339,279	2012
249,369,283

Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its carryforward amounts.

Reclassification of Capital Accounts: In order to present undistributed (distribution in excess of) net investment income (UNII), accumulated net realized gain (Accumulated Gain) and paid-in-capital (PIC) more closely to its tax character, the following accounts for each Trust were increased (decreased) as follows:

Trust — Global	UNII — $ (690,363	)	$ 690,363	$
High Income	775,851		(348,360	)	(427,491	)
Preferred Opportunity	(2,074,155	)	2,074,155

Note 6. Capital

There are an unlimited number of $0.001 par value common shares authorized for Preferred Opportunity and Global. There are an unlimited number of no par value shares authorized for High Income. At December 31, 2005, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:

Trust — Global	23,481,021	6,478
High Income	54,493,341
Preferred
Opportunity	18,305,777

Transactions in common shares of beneficial interest from August 30, 2004 (commencement of investment operations) through December 31, 2004 for Global were as follows:

Trust	Shares from — Initial Public Offering	Underwriters Exercising the Over-allotment Option	Reinvestment of Dividends	Net Increase in Shares Outstanding
Global	23,006,021	475,000		23,481,021

Offering costs of $924,000 ($0.04 per common share) incurred in connection with Globals offering of common shares have been charged to paid-in capital in excess of par of the common shares.

During the year ended December 31, 2005 and 2004, High Income issued additional shares of 302,078 and 242,592, respectively, under the terms of its Dividend Reinvestment Plan.

As of December 31, 2005, Global and Preferred Opportunity have the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

Trust	Series		Trust	Series
Global	T7	3,246	Preferred
Opportunity	T7	2,944
	W7	3,246		W7	2,944
	R7	3,246		R7	2,944

Underwriting discounts of $2,434,500 ($0.10 per common share) and offering costs of $400,260 ($0.02 per common share) incurred in connection with the preferred share offering of Global have been charged to paid-in capital in excess of par of the common shares.

Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for Global and Preferred Opportunity for the year ended December 31, 2005 were as follows:

Trust	Series			Average	Trust	Series			Average
Global	T7	2.14 %	4.27 %	3.16 %	Preferred
Opportunity	T7	2.25 %	4.27 %	3.25 %
	W7	2.10	4.31	3.18		W7	2.25	4.31	3.27
	R7	2.15	4.35	3.11		R7	2.21	4.34	3.26

Global and Preferred Opportunity may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares and any other borrowings would be less than 200%. The preferred shares are redeemable at the option of Global and Preferred Opportunity, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of Global and Preferred Opportunity, as set forth in Globals and Preferred Opportunitys Declaration of Trust, are not satisfied. The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for Global and Preferred Opportunity. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trusts sub-classification as a closed-end investment company or change its fundamental investment restrictions and (c) change the nature of its business so as to cease to be an investment company.

Note 7. Dividends

Subsequent to December 31, 2005, each Board declared dividends from undistributed earnings per common share payable January 31, 2006, to shareholders of record on January 17, 2006. The per share common dividends declared were as follows:

Trust
Global	$ 0.115000
High Income	0.020500
Preferred
Opportunity	0.166667

The dividends declared on preferred shares for the period January 1, 2006 to January 31, 2006 for Global and Preferred Opportunity were as follows:

Series — T7	252,928	Series — T7	236,020
W7	259,388	W7	236,168
R7	257,862	R7	235,756

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

| To the
Trustees and Shareholders of: |
| --- |
| BlackRock
Global Floating Rate Income Trust BlackRock Preferred Opportunity Trust (Collectively the Trusts) |

We have audited the accompanying statement of assets and liabilities of the Trusts, including the portfolios of investments, as of December 31, 2005, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of December 31, 2005, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Boston, Massachusetts, February 27, 2006

| To the
Trustees and Shareholders of |
| --- |
| BlackRock
High Income Shares: |

We have audited the accompanying statement of assets and liabilities, including the schedules of investments, of BlackRock High Income Shares (the Trust) as of December 31, 2005, and the related statements of operations and cash flows, statements of changes in net assets and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statement of changes in net assets for the year ended December 31, 2004 and the financial highlights for each of the four years in the period ended December 31, 2004 were audited by other auditors whose report, dated February 22, 2005, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock High Income Shares as of December 31, 2005, the results of its operations and cash flows, the changes in its net assets and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Boston, Massachusetts February 27, 2006

D IRECTORS/TRUSTEES INFORMATION (Unaudited)

DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)

| Name,
address, age | Current
positions held with the Trusts | Term
of office and length of time served | Principal
occupations during the past five years | Number
of portfolios overseen within the fund complex 1 | Other
Directorships held outside the fund complex |
| --- | --- | --- | --- | --- | --- |
| Independent Directors/ Trustees | | | | | |
| Andrew F. Brimmer P.O. Box 4546 New York, NY 10163-4546 Age: 79 | Lead Trustee Audit Committee Chairman 4 | 3 years 3 /since inception | President of Brimmer & Company, Inc., a
Washington, D.C.-based economic and financial consulting firm, also Wilmer D.
Barrett Professor of Economics, University of Massachusetts Amherst.
Formerly member of the Board of Governors of the Federal Reserve System. Former
Chairman, District of Columbia Financial Control Board. | 55 | Director of CarrAmerica Realty Corporation and
Borg-Warner Automotive. Formerly Director of Airborne Express, BankAmerica
Corporation (Bank of America), BellSouth Corporation, College Retirement
Equities Fund (Trustee), Commodity Exchange, Inc. (Public Governor),
Connecticut Mutual Life Insurance Company, E.I. du Pont de Nemours &
Company, Equitable Life Assurance Society of the United States, Gannett
Company, Mercedes-Benz of North America, MNC Financial Corporation (American
Security Bank), NCM Capital Management, Navistar International Corporation,
PHH Corp. and UAL Corporation (United Airlines). |
| Richard E. Cavanagh P.O. Box 4546 New York, NY 10163-4546 Age: 59 | Trustee Audit Committee Member | 3 years 3 /since inception | President and Chief Executive Officer of The
Conference Board, Inc., a leading global business research organization, from
1995-present. Former Executive Dean of the John F. Kennedy School of
Government at Harvard University from 1988-1995. Acting Director, Harvard
Center for Business and Government (1991-1993). Formerly Partner (principal)
of McKinsey & Company, Inc. (1980-1988). Former Executive Director of
Federal Cash Management, White House Office of Management and Budget
(1977-1979). Co-author, THE WINNING PERFORMANCE (best selling management
book published in 13 national editions). | 55 | Trustee of Aircraft Finance Trust (AFT) and Chairman
of Educational Testing Service (ETS). Director, Arch Chemicals, Fremont Group
and The Guardian Life Insurance Company of America. |
| Kent Dixon P.O. Box 4546 New York, NY 10163-4546 Age: 68 | Trustee Audit Committee Member 4 | 3 years 3 /since inception | Consultant/Investor. Former President and Chief
Executive Officer of Empire Federal Savings Bank of America and Banc PLUS
Savings Association, former Chairman of the Board, President and Chief
Executive Officer of Northeast Savings. | 55 | Former Director of ISFA (the owner of INVEST, a
national securities brokerage service designed for banks and thrift
institutions). |
| Frank J. Fabozzi P.O. Box 4546 New York, NY 10163-4546 Age: 57 | Trustee Audit Committee Member 4 | 3 years 3 /since inception | Consultant. Editor of THE JOURNAL OF PORTFOLIO
MANAGEMENT and Adjunct Professor of Finance and Becton Fellow at the School
of Management at Yale University. Author and editor of several books on
fixed income portfolio management. Visiting Professor of Finance and
Accounting at the Sloan School of Management, Massachusetts Institute of
Technology from 1986 to August 1992. | 55 | Director, Guardian Mutual Funds Group (18
portfolios). |

DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)

| Name,
address, age | Current
positions held with the Trusts | Term
of office and length of time served | Principal
occupations during the past five years | Number
of portfolios overseen within the fund complex 1 | Other
Directorships held outside the fund complex |
| --- | --- | --- | --- | --- | --- |
| Independent Directors/Trustees (continued) | | | | | |
| Kathleen F. Feldstein P.O. Box 4546 New York, NY 10163-4546 Age: 63 | Trustee | 3 years 3 /since January 19, 2005 5 | President of Economics Studies, Inc., a Belmont,
MA-based private economic consulting firm, since 1987; Chair, Board of
Trustees, McLean Hospital in Belmont, MA. | 55 | Director of BellSouth Inc. and Knight Ridder, Inc.;
Trustee of the Museum of Fine Arts, Boston, Committee for Economic
Development and Partners HealthCare, Inc., Corporation member of Sherrill
House, Inc. Member of the Visiting Committee of the Harvard University Art
Museums and of the Advisory Board to the International School of Business at
Brandeis University. |
| R. Glenn Hubbard P.O. Box 4546 New York, NY 10163-4546 Age: 47 | Trustee | 3 years 3 /since November 16, 2004 | Dean of Columbia Business School since July 1, 2004.
Columbia faculty member since 1988. Co-director of Columbia Business Schools
Entrepreneurship Program 1994-1997. Visiting professor at the John F. Kennedy
School of Government at Harvard and the Harvard Business School, as well as
the University of Chicago. Visiting scholar at the American Enterprise
Institute in Washington and member of International Advisory Board of the MBA
Program of Ben-Gurion University. Deputy assistant secretary of the U.S.
Treasury Department for Tax Policy 1991-1993. Chairman of the U.S. Council of
Economic Advisers under the President of the United States 2001-2003. | 55 | Director of ADP, Dex Media, Duke Realty, KKR
Financial Corporation, and Ripplewood Holdings. Advisory boards of the
Congressional Budget Office, the Council on Competitiveness, the American
Council on Capital Formation, the Tax Foundation and the Center for Addiction
and Substance Abuse. Trustee of Fifth Avenue Presbyterian Church of New York. |
| James Clayburn La Force, Jr. 6 P.O. Box 4546 New York, NY 10163-4546 Age: 76 | Trustee | 3 years 3 /since inception | Dean Emeritus of the John E. Anderson Graduate School
of Management, University of California since July 1, 1993. Acting Dean of
the School of Business, Hong Kong University of Science and Technology
1990-1993. From 1978 to September 1993, Dean of the John E. Anderson Graduate
School of Management, University of California. | 55 | Director of Payden & Rygel Investment Trust,
Metzler-Payden Investment Trust, Advisors Series Trust, Arena
Pharmaceuticals, Inc. and CancerVax Corporation. Former director of First
Nationwide Bank, Eli Lilly & Company, National Inter-group, Rockwell
International, Cyprus Mines, Getty Oil Company, The Timken Company, Jacobs
Engineering Group, and Motor Cargo Industries. |
| Walter F. Mondale 6 P.O. Box 4546 New York, NY 10163-4546 Age: 77 | Trustee | 3 years 3 /since inception | Senior Counsel, Dorsey & Whitney, LLP, a law firm
(January 2004-present); Partner, Dorsey & Whitney, LLP, (December 1996-
December 2003, September 1987-August 1993). Formerly U.S. Ambassador to Japan
(1993-1996). Formerly Vice President of the United States, U.S. Senator and
Attorney General of the State of Minnesota. 1984 Democratic Nominee for
President of the United States. | 55 | Chairman of Panasonic Foundations Board of Directors
and Director of United Health Foundation. Member of the Hubert H. Humphrey
Institute of Public Affairs Advisory Board, The Mike and Maureen Mansfield
Foundation and the Deans Board of Visitors of the Medical School at the
University of Minnesota. |

| 1 | The Fund Complex means two
or more registered investments companies that: (1) hold themselves out to
investors as related companies for purposes of investment and investor
services; or (2) have a common investment advisor or have an investment advisor
that is an affiliated person of the investment advisor of any of the other
registered investment companies. |
| --- | --- |
| 2 | Interested Director/Trustee
as defined by Section 2(a)(19) of the Investment Company Act of 1940. |
| 3 | The Board is classified
into three classes of which one class is elected annually. Each
Director/Trustee serves a three-year term concurrent with the class from
which they are elected. |
| 4 | The Board of each Trust has
determined that each Trust has three Audit Committee financial experts serving
on its Audit Committee, Dr. Brimmer, Mr. Dixon and Mr. Fabozzi, each of whom
are independent for the purpose of the definition of Audit Committee
financial expert as applicable to the Trusts. |
| 5 | Advisory Board member until
elected Director/Trustee on May 26, 2005. |
| 6 | Mr. La Force and Mr.
Mondale retired from the Board on February 23, 2006. |

DIVIDEND REINVESTMENT PLANS

Pursuant to each Trusts respective Dividend Reinvestment Plan (the Plan), shareholders of Global and High Income may elect, while shareholders of Preferred Opportunity are automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the Plan Agent) in the respective Trusts shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After Global and/or High Income declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, by the purchase of outstanding shares on the open market, on the Trusts primary exchange or elsewhere (open market purchases). These Trusts will not issue any new shares under the Plan.

After Preferred Opportunity declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agents fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.

ADDITIONAL INFORMATION

The Joint Annual Meeting of Shareholders was held on May 26, 2005, to elect a certain number of Directors/Trustees for each of the following Trusts to three year terms, unless otherwise indicated, expiring in 2008:

Global
Elected the Class I
Trustees as follows
Trustee	Votes For	Votes Withheld
Richard E. Cavanagh 2	7,729	24
R. Glenn Hubbard 1	20,177,093	1,094,202
James Clayburn La Force, Jr.	20,174,396	1,096,899
Elected the Class II Trustee as
follows:
Trustee	Votes For	Votes Withheld
Kathleen F. Feldstein 1	20,177,284	1,094,011
Preferred
Opportunity
Elected the Class II
Trustees as follows:
Trustee	Votes For	Votes Withheld
Frank J. Fabozzi 2	6,985	161
Kathleen F. Feldstein	17,520,587	215,310
Walter F. Mondale	17,451,899	283,998
Ralph L. Schlosstein	17,524,145	211,752

| 1 | Mr. Hubbard and Mrs.
Feldstein will serve until the end of the term for the class of
Directors/Trustees to which they were elected, if such class was not standing
for election at May 26, 2005 annual shareholders meeting. |
| --- | --- |
| 2 | Voted on by holders of
preferred shares only |

The following Trust had an additional proposal (Proposal #2A) to amend its Declaration of Trust in order to change the maximum number of permitted Trustees allowed on its Board to 11:

| Preferred
Opportunity | 17,142,812 | 392,617 | 200,467 |
| --- | --- | --- | --- |

The following Trust had an additional proposal (Proposal #2B) to amend its Declaration of Trust in order to reduce the maximum number of permitted Trustees allowed on its Board from 15 to 11:

Global	19,981,501	1,093,656	196,138

BlackRock, Inc. and Merrill Lynch & Co., Inc. (Merrill Lynch) announced on February 15, 2006 that they had reached an agreement to merge Merrill Lynchs investment management business, Merrill Lynch Investment Managers, with BlackRock, Inc. to create a new independent company. Merrill Lynch will have a 49.8% economic interest and a 45% voting interest in the combined company and The PNC Financial Services Group, Inc. (PNC), which currently holds a majority interest in BlackRock, Inc., will have approximately a 34% economic and voting interest. The new company will operate under the BlackRock name and be governed by a board of directors with a majority of independent members. Each of Merrill Lynch and PNC has agreed that it will vote all of its shares on all matters in accordance with the recommendation of BlackRocks board in order to assure its independence. Completion of the transaction is subject to various regulatory approvals, client consents, approval by BlackRock, Inc. shareholders and customary conditions. In the event it is determined that the transaction would constitute an assignment of the investment management agreement between the Trusts and BlackRock Advisors, Inc. and the sub-investment advisory agreement by and among the Trusts, BlackRock Advisors, Inc. and BlackRock Financial Management, Inc., the agreements would automatically terminate upon closing of the merger and new agreements would need to be approved by the board of trustees and shareholders of the Trusts. BlackRock, Inc. believes and is discussing its views with the staff of the Securities and Exchange Commission that completion of the transaction should not cause an assignment of these agreements.

On March 1, 2005, the shareholders of CIGNA High Income Shares approved proposals to: approve an advisory agreement between the Trust and BlackRock Advisors, Inc. approve a sub-advisory agreement among the Trust, BlackRock Advisors, Inc. and BlackRock Financial Management Inc., and elect new Trustees, all of whom currently oversee BlackRocks 55 closed-end funds, to serve until the next Annual Meeting of Shareholders. Upon approval of the Trustees, BlackRock Advisors, Inc. changed the name of the Trust to BlackRock High Income Shares.

During the period, there were no material changes in the investment objectives or policies or their charters or by-laws of Global or Preferred Opportunity that have not been approved by the shareholders or in the principal risk factors associated with investment in these Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of these portfolios.

Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSEs listing standards and has filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trusts offering and the information contained in each Trusts Statement of Additional Information may have become outdated.

Quarterly performance and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at http://www.blackrock.com/indiv/products/closedendfunds/funds.html. This reference to BlackRocks website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRocks website into this report.

Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor; Robert S. KapitoDirector and Vice Chairman of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley and Bartholomew BattistaManaging Directors of the Advisor and the Sub-Advisor, James Kong and Vincent B. TrittoManaging Directors of the Sub-Advisor, and Jeff Gary and Brian P. KindelanManaging Directors of the Advisor.

SECTION 19 NOTICES

Set forth below are amended notices, as of December 31, 2005, sent by the following Trusts, pursuant to Section 19 of the Investment Company Act of 1940 (the 1940 Act). Section 19 requires each Trust to accompany dividend payments with a notice if any part of that payment is estimated to be from a source other than accumulated net investment income, not including profits or losses from the sale of securities or other properties. These notices are not for tax reporting purposes and were provided only for informational purposes in order to comply with the requirements of Section 19 of the 1940 Act. In January 2006, after the completion of each Trusts tax year, shareholders will receive a Form 1099-DIV which will reflect the amount of income, capital gain and return of capital paid by the Trust taxable in calendar year 2005 and reportable on your 2005 federal and other income tax returns.

BlackRock	May-05	$ 0.02300	$ 0.02300	$ 0.00000	$ 0.00000
High
Income Shares	Jun-05	$ 0.02300	$ 0.02300	$ 0.00000	$ 0.00000
(HIS)	Aug-05	$ 0.02300	$ 0.02300	$ 0.00000	$ 0.00000
BlackRock	Jan-05	$ 0.16667	$ 0.05077	$ 0.11590	$ 0.00000
Preferred	May-05	$ 0.16667	$ 0.16667	$ 0.00000	$ 0.00000
Opportunity	Jul-05	$ 0.16667	$ 0.16667	$ 0.00000	$ 0.00000
Trust
(BPP)	Aug-05	$ 0.16667	$ 0.16667	$ 0.00000	$ 0.00000
	Nov-05	$ 0.16667	$ 0.16667	$ 0.00000	$ 0.00000
	Dec-05	$ 0.16667	$ 0.00000	$ 0.16667	$ 0.00000

BlackRock Closed-End Funds

Directors/Trustees Ralph L. Schlosstein, Chairman Andrew F. Brimmer Richard E. Cavanagh Kent Dixon Frank J. Fabozzi Kathleen F. Feldstein R. Glenn Hubbard Robert S. Kapito James Clayburn La Force, Jr. Walter F. Mondale Officers Robert S. Kapito, President Henry Gabbay, Treasurer Bartholomew Battista, Chief Compliance Officer Anne Ackerley, Vice President Jeff Gary, Vice President James Kong, Assistant Treasurer Vincent B. Tritto, Secretary Brian P. Kindelan, Assistant Secretary Investment Advisor BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Sub-Advisor 1 BlackRock Financial Management, Inc. 40 East 52nd Street New York, NY 10022 Accounting Agent and Custodian State Street Bank and Trust Company 2 Avenue de Lafayette Boston, MA 02111 Transfer Agent Computershare Trust Company, N.A. 250 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent 1 Bank of New York 101 Barclay Street, 7 West New York, NY 10286 Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP 4 Times Square New York, NY 10036 Legal Counsel Independent Trustees Debevoise & Plimpton LLP 919 Third Avenue New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares.Statements and other information contained in this report are asdated and are subject to change. BlackRock Closed-End Funds c/o BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM

1 For Global and Preferred Opportunity.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Transfer Agent at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisors proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the Commission) at http://www.sec.gov.

Information on how proxies relating to the Trusts voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedules of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trusts Form N-Q will be available on the Commissions website at http://www.sec.gov. Each Trusts Form N-Q may be reviewed and copied at the Commissions Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trusts Form N-Q may also be obtained upon request, without charge, by calling (800) 699-1BFM.

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

CEF-ANN-5

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as Exhibit 99.CODEETH hereto.

Item 3. Audit Committee Financial Expert.

The Registrant's Board of Trustees has determined that it has three audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustee: Dr. Andrew F. Brimmer, Kent Dixon and Frank Fabozzi. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees . The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $40,500 for the fiscal year ended December 31, 2005 and $41,600 for the fiscal year ended December 31, 2004.

(b) Audit-Related Fees . The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrants financial statements and are not reported above in Item 4(a) were $600 for the fiscal year ended December 31, 2005 and $0 for the fiscal year ended December 31, 2004. The nature of these services was attest services not required by statute or regulation, overhead and out-of-pocket expenses.

(c) Tax Fees . The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $7,500 for the fiscal year ended December 31, 2005 and $0 for the fiscal year ended December 31, 2004. The nature of these services was federal, state and local income and excise tax return preparation and related advice and planning and miscellaneous tax advice.

(d) All Other Fees . The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant were $3,000 for the fiscal year ended December 31, 2005 and $0 for the fiscal year ended December 31, 2004. The nature of these fees were the Registrant and the Advisor, BlackRock, Inc., hired the principal accountant to conduct a complete review of the Registrants and the Advisors compliance procedures and provide an attestation regarding such review.

(e) Audit Committee Pre-Approval Policies and Procedures .

(1) The Registrant has polices and procedures (the "Policy") for the pre-approval by the Registrant's Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy) provided by the Registrants independent auditor (the "Independent Auditor") to the Registrant and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the Audit Committee will approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved or both.

For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Registrant and (B) all engagements for non-audit services that directly impacted the operations and financial reporting or the Registrant to be provided by the Independent Auditor to any Covered Entity. "Covered Entities" means (1) BlackRock Advisors, Inc. (the Advisor) or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Registrant.

In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both. Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so.

Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority).

The terms and fees of the annual Audit services engagement for the Registrant are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Registrant structure or other matters.

In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Registrant not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the Registrant and, to the extent they are Covered Services, the other Covered Entities or that are traditionally performed by the Independent Auditor. Audit-Related services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

The Audit Committee believes that the Independent Auditor can provide Tax services to the Registrant and Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditors independence. However, the Audit Committee will not permit the retention of the Independent Auditor in connection with a transaction, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the Registrant or the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chairman between scheduled meetings of the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee.

(2) None of the services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Registrant, the Advisor (except for any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Registrant for each of the last two fiscal years were $8,100 for the fiscal year ended December 31, 2005 and $0 for the fiscal year ended December 31, 2004.

(h) The Registrant's Audit Committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The Audit Committee of the Registrant is comprised of: Dr. Andrew F. Brimmer; Richard E. Cavanagh; Kent Dixon and Frank J. Fabozzi.

Item 6. Schedule of Investments.

The Registrants Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the "Proxy Voting Policies") are attached as an Exhibit 99.PROXYPOL hereto.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a)(1) The fund management team is led by a team of investment professionals at BlackRock Financial Management, Inc. (BFM), including the following individuals who have day-to-day responsibility: Mark Williams, Managing Director of BFM since 1998, Jeff Gary, Managing Director of BFM since 2003, and Imran Hussain, Managing Director of BFM since 1998.

Mr. Williams is the head of the loan team and a member of the Investment Strategy Group. He joined BlackRock in 1998 and has been managing the Registrant since 2004.

Mr. Gary is the head of the High Yield Team and is a member of the Investment Strategy Group. Prior to joining BFM in 2003, he was a Managing Director and portfolio manager with AIG (American General) Investment Group. Mr. Gary joined BlackRock in 2003 and has been co-managing the Registrant since 2004.

Mr. Hussain is the lead portfolio manager for emerging markets and is a member of the Investment Strategy Group. He joined BlackRock in 1998 and has been co-managing the Registrant since 2004.

(a)(2) As of December 31, 2005, Mark Williams managed or was a member of the management team for the following client accounts:

			Number of
			Accounts
			Subject to	Assets Subject
	Number	Assets	a Performance	to a
Type of Account	of Accounts	of Accounts	Fee	Performance Fee
Registered
Investment
Companies	3	$1.8 billion	0	$-
Pooled Investment
Vehicles Other Than
Registered Investment
Companies	12	$3.9 billion	9	$3.7 billion
Other Accounts	1	$159 million	0	$-

As of December 31, 2005, Jeff Gary managed or was a member of the management team for the following client accounts:

			Number of
			Accounts
			Subject to	Assets Subject
	Number	Assets	a Performance	to a
Type of Account	of Accounts	of Accounts	Fee	Performance Fee
Registered
Investment
Companies	4	$1.4 billion	0	$-
Pooled Investment
Vehicles Other Than
Registered Investment
Companies	10	$7.4 billion	7	$2.9 billion
Other Accounts	12	$1.7 billion	2	$308 million

As of December 31, 2005, Imran Hussain managed or was a member of the management team for the following client accounts:

			Number of
			Accounts
			Subject to	Assets Subject
	Number	Assets	a Performance	to a
Type of Account	of Accounts	of Accounts	Fee	Performance Fee
Registered
Investment
Companies	4	$903 million	0	$-
Pooled Investment
Vehicles Other Than
Registered Investment
Companies	32	$19.3 billion	1	$1.6 billion
Other Accounts	44	$7.8 billion	3	$299 million

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Registrant, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Registrant. In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Registrant. BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Registrant by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRocks (or its affiliates) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for the Registrant. In this connection, it should be noted that Mr. Williams manages certain accounts that are subject to performance fees. In addition, Mr. Williams and Mr. Gary assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

(a)(3) BlackRocks financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock Program.

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm.

Discretionary compensation. In addition to base compensation, portfolio managers may receive discretionary compensation, which can be a substantial portion of total compensation. Discretionary compensation can include a discretionary cash bonus as well as one or more of the following:

Long-Term Retention and Incentive Plan (LTIP) The LTIP is a long-term incentive plan that seeks to reward certain key employees. The plan provides for the grant of awards that are expressed as an amount of cash that, if properly vested and subject to the attainment of certain performance goals, will be settled in cash and/or in BlackRock, Inc. common stock. Mr. Williams and Mr. Gary have received awards under the LTIP.

Deferred Compensation Program A portion of the compensation paid to each portfolio manager may be voluntarily deferred by the portfolio manager into an account that tracks the performance of certain of the firms investment products. Each portfolio manager is permitted to allocate his deferred amounts among various options, including to certain of the firms hedge funds and other unregistered products. In addition, prior to 2005, a portion of the annual compensation of certain senior managers, including Mr. Williams and Mr. Gary were mandatorily deferred in a similar manner for a number of years. Beginning in 2005, a portion of the annual compensation of certain senior managers, including Mr. Williams, is paid in the form of BlackRock, Inc. restricted stock units which vest ratably over a number of years.

Options and Restricted Stock Awards While incentive stock options are not currently being awarded to BlackRock employees, BlackRock, Inc. previously granted stock options to key employees, including certain portfolio managers who may still hold unexercised or unvested options. BlackRock, Inc. also has a restricted stock award program designed to reward certain key employees as an incentive to contribute to the long-term success of BlackRock. These awards vest over a period of years. Mr. Williams has been granted stock options in prior years, and Mr. Williams and Mr. Gary participate in BlackRocks restricted stock program.

Incentive Savings Plans The PNC Financial Services Group, Inc., which owns approximately 71% of BlackRock, Inc.s common stock, has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including an Employee Stock Purchase Plan (ESPP) and a 401(k) plan. The 401(k) plan may involve a company match of the employees contribution of up to 6% of the employees salary. The company match is made using BlackRock, Inc. common stock. The firms 401(k) plan offers a range of investment options, including registered investment companies managed by the firm. Each portfolio manager is eligible to participate in these plans.

Annual incentive compensation for each portfolio manager is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio managers group within BlackRock, the investment performance, including risk-adjusted returns, of the firms assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individuals teamwork and contribution to the overall performance of these portfolios and BlackRock. Unlike many other firms, portfolio managers at BlackRock compete against benchmarks rather than each other. In most cases, including for the portfolio managers of the Registrant, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Registrant or other accounts are measured. A group of BlackRock, Inc.s officers determines the benchmarks against which to compare the performance of funds and other accounts managed by each portfolio manager. The performance of Portfolio Managers for the same fund, including the Registrant, may be measured against different benchmarks because they are responsible for different segments of the portfolio. With respect to the Registrants portfolio managers, such benchmarks include the following:

Mark Williams:

Jeff Gary: A combination of market-based indices (e.g., The Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index), certain customized indices and certain fund industry peer groups.

Imran Hussain:

The group of BlackRock, Inc.s officers then makes a subjective determination with respect to the portfolio managers compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks. This determination may take into consideration the fact that a benchmark may not perfectly correlate to the way the Registrant or other accounts are managed, even if it is the benchmark that is most appropriate for the Registrant or other accounts. For example, a benchmarks return may be based on the total return of the securities comprising the benchmark, but the Registrant or other account may be managed to maximize income and not total return. Senior portfolio managers who perform additional management functions within BlackRock may receive additional compensation for serving in these other capacities.

(a)(4) As of December 31, 2005, the end of the Registrants most recently completed fiscal year, the dollar range of securities beneficially owned by each portfolio manager in the Registrant is shown below: Mark Williams: None Jeff Gary: None Imran Hussain: None

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Registrants Nominating Committee will consider nominees to the Board of Trustees recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and sets forth the qualifications of the proposed nominee to the Registrants Secretary. There have been no material changes to these procedures.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrants disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrants management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant's fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics attached as EX-99.CODE ETH.

(a) (2) Certifications of Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under the 1940 Act attached as EX-99.CERT.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.

Proxy Voting Policies attached as EX-99.PROXYPOL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) BlackRock Global Floating Rate Income Trust

By: /s/ Henry Gabbay Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: March 1, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Robert S. Kapito Name: Robert S. Kapito Title: President and Principal Executive Officer Date: March 1, 2006

By: /s/ Henry Gabbay Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: March 1, 2006

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