QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

COMMON STOCKS - 101.6% (71.1% of Total Investments)

Aerospace & Defense - 6.0%

140,000

Lockheed Martin Corporation

$    8,548,400

235,000

Raytheon Company

9,094,500

17,642,900

Auto Components - 0.8%

555,000

Delphi Corporation

2,486,400

Chemicals - 2.9%

492,000

DSM NV, Sponsored ADR

8,585,400

Commercial Banks - 5.0%

150,000

Wachovia Corporation

7,636,500

120,000

Wells Fargo & Company

7,176,000

14,812,500

Commercial Services & Supplies - 2.4%

155,000

Pitney Bowes Inc.

6,993,600

Containers & Packaging - 2.5%

300,000

Packaging Corp of America

7,287,000

Diversified Financial Services - 8.6%

205,000

Citigroup Inc.

9,212,700

265,000

IndyMac Bancorp, Inc.

9,010,000

205,000

JPMorgan Chase & Co.

7,093,000

25,315,700

Diversified Telecommunication Services - 11.7%

343,000

KT Corporation, Sponsored ADR

7,309,330

235,000

SBC Communications Inc.

5,567,150

330,000

Sprint Corporation

7,507,500

235,000

Telecom Italia S.p.A., Sponsored ADR

7,379,000

190,000

Verizon Communications Inc.

6,745,000

34,507,980

Electric Utilities - 3.0%

652,000

Korea Electric Power Corporation (KEPCO), Sponsored ADR

8,762,880

Food & Staples Retailing - 4.4%

375,000

Albertson's, Inc.

7,743,750

240,625

J Sainsbury plc, Sponsored ADR

5,221,562

12,965,312

Household Durables - 1.5%

207,000

Newell Rubbermaid Inc.

4,541,580

Household Products - 1.8%

80,000

Kimberly-Clark Corporation

5,258,400

Insurance - 4.9%

390,000

Aon Corporation

8,907,600

80,000

Hartford Financial Services Group, Inc.

5,484,800

14,392,400

Metals & Mining - 6.5%

404,000

Alumina Limited, Sponsored ADR

7,433,600

90,000

Rio Tinto plc, Sponsored ADR

11,677,500

19,111,100

Multi-Utilities & Unregulated Power - 4.2%

110,000

Dominion Resources, Inc.

8,187,300

180,000

United Utilities plc, Sponsored ADR

4,347,000

12,534,300

Oil & Gas - 13.9%

80,000

ChevronTexaco Corporation

4,664,800

56,700

ConocoPhillips

6,114,528

53,000

Eni S.p.A., Sponsored ADR

6,898,480

215,000

Kerr-McGee Corporation

16,840,950

55,000

Total SA, Sponsored ADR

6,447,650

40,966,408

Paper & Forest Products - 4.1%

125,000

International Paper Company

4,598,750

110,000

Weyerhaeuser Company

7,535,000

12,133,750

Pharmaceuticals - 2.5%

230,000

Merck & Co. Inc.

7,445,100

Road & Rail - 2.1%

90,000

Union Pacific Corporation

6,273,000

Thrifts & Mortgage Finance - 3.9%

212,000

Fannie Mae

11,543,400

Tobacco - 8.9%

235,000

Altria Group, Inc.

15,366,650

330,000

Loews Corp - Carolina Group

10,923,000

26,289,650

Total Common Stocks (cost $268,074,514)

299,848,760

PREFERRED SECURITIES - 11.2% (7.8% of Total Investments)

Capital Markets - 1.2%

17,500

Bear Stearns Companies, Series E

6.150%

A3

BBB

903,000

77,700

Lehman Brothers Holdings Inc., Series F

6.500%

A3

BBB+

2,043,510

25,000

Merrill Lynch and Company

10.620%

A2

A-

633,000

3,579,510

Commercial Banks - 2.1%

41,100

Abbey National plc

7.375%

A2

A-

1,076,820

23,500

Abbey National plc, Series B

7.375%

A2

A-

627,450

80,000

ABN AMRO Capital Trust Fund VII

6.080%

A2

A

1,954,400

25,000

Banco Santander

6.410%

A2

BBB+

638,750

40,000

HSBC USA Inc.

3.870%

A2

A-

1,000,000

40,000

Royal Bank of Scotland Group plc, Series M

6.400%

A1

A

1,012,000

6,309,420

Consumer Finance - 0.7%

36,100

SLM Corporation, Series A

6.970%

Baa1

BBB+

1,985,500

Diversified Financial Services - 1.5%

19,500

Citigroup Inc., Series F

6.365%

Aa3

A

1,004,250

30,000

Citigroup Inc., Series H

6.231%

Aa3

N/R

1,552,500

5,000

ING Group NV

7.050%

N/R

A-

128,300

48,400

ING Group NV

7.200%

A2

A-

1,250,656

25,600

ING Group NV

6.200%

A2

A-

631,040

4,566,746

Electric Utilities - 1.7%

39,500

Alabama Power Company, Series A

5.300%

Baa1

BBB+

1,031,938

9,800

Consolidated Edison Company of New York, Inc.

5.000%

A3

BBB+

898,954

41,500

Interstate Power and Light Company

7.100%

Baa3

BBB-

1,105,145

40,000

Mississippi Power Company

5.250%

A3

BBB+

1,003,752

40,000

Savannah Electric and Power Company

6.000%

Baa1

BBB+

1,068,752

5,108,541

Insurance - 1.6%

73,000

Ace Ltd., Series C

7.800%

Baa2

BBB-

1,898,730

40,000

Genworth Financial Inc., Series A

5.250%

Baa1

BBB+

2,086,252

30,000

Prudential plc

6.750%

Baa1

A

763,200

4,748,182

Thrifts & Mortgage Finance - 2.4%

35,000

Fannie Mae

5.810%

Aa3

AA-

1,659,000

33,900

Fannie Mae

5.125%

Aa3

AA-

1,416,003

20,000

Fannie Mae

5.500%

Aa3

AA-

907,600

18,400

Federal Home Loan Mortgage Corporation

6.000%

Aa3

AA-

920,920

20,000

Federal Home Loan Mortgage Corporation

5.700%

Aa3

AA-

975,000

21,900

Federal Home Loan Mortgage Corporation

5.000%

Aa3

AA-

920,895

6,799,418

Total Preferred Securities (cost $33,630,008)

33,097,317

CORPORATE BONDS - 4.3% (3.0% of Total Investments)

Construction Materials - 1.1%

 $

2,800

Texas Industries Inc.

10.250%

6/15/11

B1

BB-

3,185,000

Hotels, Restaurants & Leisure - 0.7%

2,000

Park Place Entertainment

8.875%

9/15/08

Ba2

BB-

2,197,500

Household Durables - 1.8%

2,000

D.R. Horton, Inc.

7.500%

12/01/07

Ba1

BB+

2,113,518

2,000

Standard Pacific Corporation

6.500%

10/01/08

Ba2

BB

2,020,000

1,000

Standard Pacific Corporation

9.500%

9/15/10

Ba2

BB

1,060,000

5,193,518

Paper & Forest Products - 0.7%

2,000

Georgia-Pacific Corp

7.375%

7/15/08

Ba2

BB+

2,105,000

Total Corporate Bonds (cost $12,739,328)

12,681,018

VARIABLE RATE SENIOR LOAN INTERESTS⁽²⁾ - 23.7 (16.5% of Total Investments)

Aerospace & Defense - 2.0%

2,000

Hexcel, Term Loan B

4.990%

3/01/12

B2

B+

2,030,626

1,900

K & F Industries, Inc., Term Loan B

5.330%

11/18/12

B2

B+

1,934,834

1,633

Vought Aircraft Industries, Inc., Term Loan

5.350%

12/22/11

Ba3

B+

1,659,042

364

Vought Aircraft Industries, Inc., Tranche B, Letter of Credit

5.190%

12/22/10

Ba3

B+

369,318

5,993,820

Auto Components - 2.0%

2,000

Federal-Mogul Corporation, Term Loan (b)

TBD

TBD

B1

N/R

2,008,750

2,000

Federal-Mogul Corporation, Term Loan A (a)

5.100%

2/24/04

N/R

N/R

1,876,563

1,985

Mark IV Industries, Inc., Term Loan B

6.237%

6/23/11

B1

BB-

2,019,738

5,905,051

Building Products- 0.6%

1,870

PP Holding Corporation, Term Loan

5.350%

11/12/11

B1

B

1,895,713

Chemicals- 0.7%

2,000

Rockwood Specialties Group, Inc., Tranche D

4.950%

7/30/12

B1

B+

2,044,286

Commercial Services & Supplies - 1.8%

703

Allied Waste North America, Inc., Letter of Credit (b)

TBD

TBD

B1

BB

709,850

1,897

Allied Waste North America, Inc., Term Loan B (b)

TBD

TBD

B1

BB

1,916,594

2,813

Allied Waste North America, Inc., Term Loan B (b)

TBD

TBD

B2

BB

2,822,471

5,448,915

Containers & Packaging - 1.0%

788

Owens-Illinois Group, Inc, Term Loan B

5.580%

4/01/08

N/R

N/R

803,901

175

Smurfit-Stone Container Corporation, Deposit-Funded Commitment

2.100%

11/01/11

Ba3

BB-

178,181

1,396

Smurfit-Stone Container Corporation, Term Loan B

4.780%

11/01/11

Ba3

BB-

1,423,910

429

Smurfit-Stone Container Corporation, Term Loan C

4.870%

11/01/11

Ba3

BB-

438,243

2,844,235

Electrical Equipment - 0.7%

1,704

Sensus Metering Systems Inc., Term Loan B-1

5.430%

12/17/10

B2

B+

1,724,232

256

Sensus Metering Systems Inc., Term Loan B-2

5.430%

12/17/10

B2

B+

258,635

1,982,867

Healthcare Providers & Services - 1.1%

1,199

Alderwoods Group, Inc., Term Loan B-2

4.870%

9/29/08

B1

BB-

1,218,986

1,985

IASIS Healthcare LLC., Term Loan B

4.810%

6/22/11

B1

B+

2,019,738

3,238,724

Hotels Restaurants & Leisure - 2.6%

1,982

24 Hour Fitness Worldwide, Inc., Term Loan B

6.250%

7/01/09

B1

B

2,013,780

1,980

Jack in the Box, Inc., Term Loan

4.570%

1/09/10

Ba2

BB

2,012,175

342

Venetian Casino Resort, Delayed Draw, Term Loan (c)

0.750%

6/15/11

B1

B+

4,594

1,658

Venetian Casino Resort, Term Loan

4.810%

6/15/11

B1

B+

1,680,712

2,080

Wyndham International, Inc., Term Loan II

8.563%

4/01/06

N/R

CCC+

2,087,554

7,798,815

Household Durables - 0.6%

1,661

Sealy Mattress Company, Term Loan C

4.770%

8/06/12

B2

B+

1,695,312

Household Products - 1.0%

2,970

Solo Cup Company, Term Loan

4.970%

2/27/11

B1

B+

3,017,520

Insurance - 0.7%

1,918

Conseco, Inc., Term Loan

6.350%

6/22/10

B2

BB-

1,956,157

IT Services - 0.7%

2,000

Fidelity National Information Services, Term Loan B

4.510%

3/09/13

Ba3

BB

2,009,500

Machinery - 0.5%

1,482

Dressner-Rand Group Inc., Term Loan

4.560%

10/10/10

B1

B+

1,509,304

Media - 4.9%

1,985

Charter Communications Operating, LLC, Term Loan B

5.980%

4/07/11

B2

B

1,997,317

1,995

Emmis Operating Company, Term Loan

4.520%

11/10/11

Ba2

B+

2,024,786

2,000

Freedom Communications, Inc., Term Loan B

4.597%

5/18/12

Ba3

B+

2,036,500

1,990

Metro-Goldwyn-Mayer Studios, Inc., Term Loan B

5.350%

4/26/11

N/R

N/R

1,994,665

1,920

Regal Cinemas Corporation, Term Loan

5.093%

11/10/10

Ba3

BB-

1,955,504

883

Transwestern Publishing Company LLC, First Lien Term Loan

4.459%

2/25/11

B1

BB-

886,912

990

Transwestern Publishing Company LLC, Second Lien Term Loan

7.500%

2/25/12

B3

BB-

1,001,964

2,226

WMG Acquisition Corp., Term Loan

5.090%

2/27/11

B1

B+

2,246,272

14,143,920

Metals & Mining - 0.9%

2,755

Amsted Industries Incorporated, Term Loan B

5.510%

10/15/10

B1

BB-

2,802,720

Real Estate - 1.9%

1,521

Crescent Real Estate Funding XII,L.P., Term Loan

4.940%

3/20/06

N/R

BB+

1,535,638

1,995

General Growth Properties, Term Loan B

5.100%

11/12/08

Ba2

BB+

2,031,457

2,000

LNR Property Corporation, Term Loan

5.810%

2/03/08

B2

B+

2,029,688

5,596,783

Total Variable Rate Senior Loan Interests (cost $69,154,149)

69,883,642

HIGH-GRADE SHORT-TERM INVESTMENTS - 2.3% (1.6% of Total Investments)

6,838

State Street Bank Euro Dollar Time Deposit, 2.400%, 4/01/05

6,837,575

Total High Grade Short-Term Investments (cost $6,837,575)

6,837,575

Total Investments (cost $390,435,574) - 143.1%

422,348,312

FundNotes - (26.4)%

(78,000,000)

Other Assets Less Liabilities - (1.5)%

(4,239,158)

FundPreferred Shares, at Liquidation Value (15.2)%

(45,000,000)

Net Assets Applicable to Common Shares - 100%

$    295,109,154

(1)  

All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares

unless otherwise noted.

(2)  

Senior Loans in which the Fund invests generally pay interest at rates which are periodically adjusted by

reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates

are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime

rate offered by one or more major United States banks.

Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive

approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.

At March 31, 2005, the fund had unfunded loan commitments of $341,880.

*  

Senior Loans in the Fund's portfolio generally are subject to mandatory and/or optional prepayment. Because

of these mandatory prepayment conditions and because there may be significant economic incentives for a

Borrower to prepay, prepayments of Senior Loans in the Fund's portfolio may occur. As a result, the

actual remaining maturity of Senior Loans held in the Fund's portfolio may be substantially less than the

stated maturities shown. The Fund estimates that the actual average maturity of the Senior Loans held in its

portfolio will be approximately 18-24 months.

**  

Ratings below Baa by Moody's Investor Service, Inc. or BBB by Standard & Poor's Group are considered to

be below investment grade.

(a)  

At or subsequent to March 31, 2005, this issue was under the protection of the Federal bankruptcy court.

(b)  

Purchased on a when-issued or delayed delivery basis.

(c)  

Position represents an unfunded loan commitment outstanding at March 31, 2005.

ADR  

American Depository Receipt.

TBD  

Senior Loan purchased on a when-issued or delayed delivery basis. Certain details associated with this

purchase are not known prior to the settlement date of the transaction. In addition, Senior Loans typically

trade without accrued interest and therefore a weighted average coupon rate is not available prior to settlement.

At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final weighted average coupon

rate and maturity date.

N/R  

Investment is not rated.

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial

statement and federal income tax purposes are primarily due to timing differences in recognizing income on

taxable market discount securities and timing differences in recognizing certain gains and losses on security

transactions.

At March 31, 2005, the cost of investments was $390,682,136.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2005, were as

follows:

Gross unrealized:

   Appreciation

$45,494,117

   Depreciation

(13,827,941)

Net unrealized appreciation of investments

$31,666,176