Edgar Filing: Nuveen Multi-Strategy Income & Growth Fund 2

nvq

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21333

Nuveen Multi-Strategy Income and Growth Fund 2

(Exact name of registrant as specified in charter)

333 West Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary
333 West Wacker Drive, Chicago, Illinois 60606
(Name and address of agent for service)

Registrant’s telephone number, including area code: 312-917-7700

Date of fiscal year end: 12/31

Date of reporting period: 3/31/2008

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

TABLE OF CONTENTS


	Item 1. Schedule of Investments
	Item 2. Controls and Procedures
	Item 3. Exhibits
SIGNATURES
Certifications

Item 1. Schedule of Investments

Portfolio of Investments (Unaudited)

Nuveen Multi-Strategy Income and Growth Fund 2 (JQC)
March 31, 2008


Shares		Description (1)	Value


		Common Stocks – 38.5% (24.0% of Total Investments)

		Aerospace & Defense – 0.6%

	30,310	Boeing Company	$	2,254,155
	17,420	Finmeccanica S.p.A.		593,148
	16,222	Lockheed Martin Corporation		1,610,845
	12,180	Orbital Sciences Corporation, (2)		293,538
	59,500	Thales S.A.		3,851,103
	16,820	United Technologies Corporation		1,157,552

		Total Aerospace & Defense		9,760,341


		Airlines – 0.1%

	57,810	Lufthansa AG		1,565,538
	2,520	Ryanair Holdings PLC, (2)		71,266

		Total Airlines		1,636,804


		Auto Components – 0.3%

	56,190	Aisin Seiki Company Limited		2,119,137
	12,410	Cooper Tire & Rubber		185,778
	18,500	Johnson Controls, Inc.		625,300
	33,860	Magna International Inc., Class A		2,442,999

		Total Auto Components		5,373,214


		Automobiles – 0.6%

	33,570	Daimler-Chrysler AG, (2)		2,871,914
	51,200	Honda Motor Company Limited		1,475,072
	1,566	S.A. D’Ieteren N.V.		556,603
	25,110	Toyota Motor Corporation		2,533,348
	2,400	Volkswagen AG		139,872
	96,800	Yamaha Motor Company Limited		1,799,028

		Total Automobiles		9,375,837


		Beverages – 1.3%

	2,040	Boston Beer Company, (2)		96,982
	134,440	Coca-Cola Amatil Limited		1,046,330
	72,530	Coca-Cola Company		4,414,901
	52,090	Coca-Cola Enterprises Inc.		1,260,578
	26,540	Diageo PLC, Sponsored ADR		2,158,233
	66,300	Fomento Economico Mexicano S.A.		2,770,014
	91,030	Heineken N.V.		5,286,961
	31,530	Molson Coors Brewing Company, Class B		1,657,532
	41,342	Pepsi Bottling Group, Inc.		1,401,907
	57,070	SABMiller PLC		1,251,681

		Total Beverages		21,345,119


		Biotechnology – 0.7%

	3,230	Abraxis Bioscience Inc.		190,828
	99,100	Amgen Inc., (2), (11)		4,140,398
	23,470	Cephalon, Inc., (2)		1,511,468
	9,810	Genentech, Inc., (2)		796,376
	31,210	Genzyme Corporation, (2)		2,326,393
	7,570	Invitrogen Corporation, (2)		647,008
	19,020	Novo-Nordisk A/S		1,316,945

		Total Biotechnology		10,929,416


		Building Products – 0.1%

	286,762	Sonae Industria-SPGS S.A.		1,992,676


		Capital Markets – 1.0%

	9,350	Ameriprise Financial, Inc.		484,798
	258,830	Babcock & Brown Limited		3,508,355
	50,470	Bank of New York Company, Inc.		2,106,113
	2,730	BlackRock Inc.		557,411
	15,664	Calamos Asset Management, Inc. Class A		255,010
	41,130	Credit Suisse Group, (2)		2,092,694
	17,010	Credit Suisse Group		866,113
	37,850	Invesco LTD		922,026
	34,490	JPMorgan Chase & Co.		1,481,346
	15,510	SEI Investments Company		382,942
	10,931	State Street Corporation		863,549
	112,000	UBS AG, (11)		3,225,600

		Total Capital Markets		16,745,957


		Chemicals – 1.3%

	15,980	Air Products & Chemicals Inc.		1,470,160
	860	Bayer AG		69,226
	3,430	CF Industries Holdings, Inc.		355,417
	10,950	Eastman Chemical Company		683,828
	6,730	Lubrizol Corporation		373,582
	285,700	Mitsui Chemicals		1,915,497
	53,120	Mosaic Company, (2)		5,450,112
	464,520	Nissan Chemical Industries Limited		4,949,369
	400	Potash Corporation of Saskatchewan		62,084
	23,050	Potash Corporation of Saskatchewan		3,581,738
	34,940	Shin-Etsu Chemical Company Limited		1,819,352
	10,010	Terra Industries, Inc., (2)		355,655

		Total Chemicals		21,086,020


		Commercial Banks – 2.2%

	1,110	Allied Irish Banks		47,930
	20,490	Allied Irish Banks		436,876
	104,590	Allianz S.E.		2,056,239
	2,080	Banco Bilbao Vizcaya Argentaria S.A.		45,739
	2,130	Banco Bradesco S.A., ADR		59,129
	2,590	Banco Itau Holdings Financeira, S.A.		58,948
	54,810	Banco Santander Central S.A.		1,092,911
	33,160	Bank of Montreal		1,485,900
	2,100	Barclays PLC		76,020
	30,350	BB&T Corporation		973,021
	35,620	BNP Paribas S.A.		3,591,642
	9,420	Comerica Incorporated		330,454
	13,000	Community Bank System Inc.		319,280
	43,980	Credit Agricole S.A.		1,359,766
	341,600	DnB NOR ASA		5,215,100
	154,940	Hang Seng Bank		2,820,877
	46,990	ICICI Bank Limited, ADR		1,794,548
	23,470	Kookmin Bank		1,315,494
	32,740	Lloyds TSB Group PLC, Sponsored ADR		1,175,366
	18,770	Marshall and Ilsley Corporation		435,464
	3,510	National Bank of Greece S.A.		184,791
	41,050	National Bank of Greece S.A.		433,488
	1,189,740	Nishi-Nippon City Bank Limited		3,150,470
	31,510	Northern Trust Corporation		2,094,470
	13,540	PNC Financial Services Group, Inc.		887,818
	6,043	Prosperity Bancshares, Inc.		173,192
	212,440	Royal Bank of Scotland, PLC, (2)		1,423,175
	63,990	Standard Chartered PLC		2,188,179
	6,210	SVB Financial Group, (2)		271,004
	28,170	Sydbank A/S		1,029,437
	7,200	UMB Financial Corporation		296,640

		Total Commercial Banks		36,823,368


		Commercial Services & Supplies – 0.8%

	444,100	Allied Waste Industries, Inc., (2), (11)		4,800,721
	3,078	Consolidated Graphics Inc., (2)		172,522
	2,560	Dun and Bradstreet Inc.		208,333
	288,360	Michael Page International PLC		1,731,574
	36,580	Randstad Holding N.V.		1,712,983
	435,000	Toppan Printing Company Limited		5,087,003

		Total Commercial Services & Supplies		13,713,136


		Communications Equipment – 0.8%

	6,000	Comtech Telecom Corporation, (2)		234,000
	132,450	Corning Incorporated		3,184,098
	8,670	Interdigital Inc., (2)		171,753
	122,300	LM Ericsson Telefonaktiebolaget, (11)		2,403,195
	108,790	Nokia Oyj, Sponsored ADR		3,462,786
	103,370	QUALCOMM Inc.		4,238,170
	8,730	Tandberg ASA		131,679

		Total Communications Equipment		13,825,681


		Computers & Peripherals – 0.8%

	30,890	Apple, Inc., (2)		4,432,715
	99,720	Hewlett-Packard Company		4,553,215
	10,930	International Business Machines Corporation (IBM)		1,258,480
	10,920	NCR Corporation, (2)		249,304
	117,064	Network Appliance, Inc., (2)		2,347,133
	10,920	Teradata Corporation		240,895

		Total Computers & Peripherals		13,081,742


		Construction & Engineering – 0.7%

	434,060	AMEC PLC		6,234,420
	12,610	Fluor Corporation		1,780,028
	210,210	JGC Corporation		3,225,959
	6,710	Perini Corporation		243,103

		Total Construction & Engineering		11,483,510


		Consumer Finance – 0.3%

	12,580	MasterCard, Inc.		2,805,214
	67,290	Western Union Company		1,431,258

		Total Consumer Finance		4,236,472


		Containers & Packaging – 0.0%

	14,270	Owens-Illinois, Inc.		805,256


		Distributors – 0.1%

	114,090	Jardine Cycle & Carriage Limited		1,633,341


		Diversified Consumer Services – 0.0%

	3,210	Apollo Group, Inc., (2)		138,672
	3,910	ITT Educational Services, Inc., (2)		179,586

		Total Diversified Consumer Services		318,258


		Diversified Financial Services – 0.6%

	83,270	Citigroup Inc.		1,783,643
	29,600	Deutsche Boerse AG		4,770,530
	22,960	Eaton Vance Corporation		700,510
	17,000	eSpeed Inc., Class A		198,220
	30,870	ING Group N.V.		1,153,612
	18,500	Nasdaq Stock Market, Inc., (2)		715,210

		Total Diversified Financial Services		9,321,725


		Diversified Telecommunication Services – 1.6%

	50,470	AT&T Inc.		1,933,001
	540	Brasil Telecom		35,348
	9,810	Cbeyond Inc., (2)		184,330
	1,918	Chunghwa Telecom Co., Ltd., Sponsored ADR		50,445
	29,170	France Telecom S.A.		979,529
	138,350	KT Corporation, Sponsored ADR, (11)		3,285,813
	526,670	Nippon Telegraph and Telephone Corporation, ADR, (11)		11,418,206
	81,350	Telecom Argentina S.A., (2)		1,722,993
	650,000	Telecom Italia S.p.A.		1,074,040
	33,990	Telefonica S.A.		2,940,475
	74,060	Telefonos de Mexico de C.V., Series L		2,784,656

		Total Diversified Telecommunication Services		26,408,836


		Electric Utilities – 1.7%

	400	Ameren Corporation		17,616
	7,950	Black Hills Corporation		284,451
	357,200	Centrais Electricas Brasileiras S.A., ADR		5,178,721
	55,390	E.ON A.G		3,454,630
	44,570	Edison International		2,184,821
	12,000	El Paso Electric Company, (2)		256,440
	21,030	FPL Group, Inc.		1,319,422
	146,000	IDACORP, INC		4,688,060
	382,100	Korea Electric Power Corporation, Sponsored ADR		5,746,784
	211,100	PNM Resources Inc.		2,632,417
	11,880	Progress Energy, Inc.		495,396
	86,830	Reliant Energy Inc., (2)		2,053,530

		Total Electric Utilities		28,312,288


		Electrical Equipment – 0.4%

	50,590	ABB Limited		1,363,510
	66,994	Emerson Electric Co.		3,447,511
	1,890	First Solar Inc., (2)		436,855
	26,070	Nikon Corporation		697,751

		Total Electrical Equipment		5,945,627


		Electronic Equipment & Instruments – 0.7%

	2,234	Itron Inc., (2)		201,574
	103,190	LG Philips LCD Company Limited, Sponsored ADR, (2)		2,304,233
	25,000	MEMC Electronic Materials, (2)		1,772,500
	9,690	Mettler-Toledo International Inc., (2)		941,093
	89,700	Tech Data Corporation, (2), (11)		2,942,160
	4,641	Teledyne Technologies Inc., (2)		218,127
	41,210	Thermo Fisher Scientific, Inc., (2)		2,342,376

		Total Electronic Equipment & Instruments		10,722,063


		Energy Equipment & Services – 1.2%

	2,000	Atwood Oceanics Inc., (2)		183,440
	328,000	BJ Services Company, (11)		9,351,280
	36,560	Cooper Cameron Corporation, (2)		1,522,358
	2,680	Dawson Geophysical Company, (2)		180,900
	13,190	Dresser Rand Group, Inc., (2)		405,593
	16,160	FMC Technologies Inc., (2)		919,342
	58,260	Global Industries, Limited, (2)		937,403
	10,270	Matrix Service Company, (2)		176,439
	22,740	National-Oilwell Varco Inc., (2)		1,327,561
	12,620	Noble Corporation		626,835
	46,990	Patterson-UTI Energy, Inc.		1,230,198
	14,300	Technip S.A.		1,113,924
	13,640	Tidewater Inc.		751,700
	6,990	Transocean Inc.		945,048
	5,290	Trico Marine Services Inc., (2)		206,151
	9,350	Unit Corporation, (2)		529,678

		Total Energy Equipment & Services		20,407,850


		Food & Staples Retailing – 0.5%

	25,040	Casino Guichard-Perrachon S.A.		3,001,531
	4,580	Koninklijke Ahold N.V., (2)		68,219
	155,380	Marks and Spencer Group PLC		1,195,531
	4,750	Nash Finch Company		161,405
	45,640	Safeway Inc.		1,339,534
	35,660	Wal-Mart Stores, Inc.		1,878,569
	82,250	William Morrison Supermarkets PLC		448,456

		Total Food & Staples Retailing		8,093,245


		Food Products – 1.8%

	31,050	ConAgra Foods, Inc.		743,648
	21,830	Flowers Foods Inc.		540,293
	44,110	H.J. Heinz Company		2,071,847
	267,890	Jeronimo Martins SGPS		2,154,495
	6,240	Monsanto Company		695,760
	580	Nestle S.A.		72,753
	377,700	Smithfield Foods, Inc., (2), (11)		9,729,552
	135,550	Tingyi Holding Corporation		178,647
	679,300	Tyson Foods, Inc., Class A, (11)		10,834,835
	96,960	Unilever PLC		3,269,491

		Total Food Products		30,291,321


		Gas Utilities – 0.5%

	1,460	BG PLC		169,319
	6,530	E. ON AG		1,208,220
	34,933	Energen Corporation		2,176,326
	11,060	Equitable Resources Inc.		651,434
	3,560	Gas Natural SDG		219,957
	56,290	Questar Corporation		3,183,762
	25,880	Spectra Energy Corporation		588,770

		Total Gas Utilities		8,197,788


		Health Care Equipment & Supplies – 0.6%

	27,550	Alfresa Holdings Corporation		2,186,181
	3,060	Analogic Corporation		203,612
	13,370	Applera Corporation-Applied Biosystems Group		439,338
	38,520	Baxter International Inc.		2,227,226
	753	Fresenius Medical Care, ADR		37,891
	44,670	Fresenius Medical Care, ADR		2,247,981
	155,500	Paramount Bed Company Limited		2,129,515
	12,480	Patterson Companies Inc., (2)		453,024
	5,719	Surmodics Inc., (2)		239,512

		Total Health Care Equipment & Supplies		10,164,280


		Health Care Providers & Services – 0.1%

	27,818	Express Scripts, Inc., (2)		1,789,254
	6,350	Mentor Corporation		163,322

		Total Health Care Providers & Services		1,952,576


		Hotels, Restaurants & Leisure – 0.3%

	2,950	Bally Technologies, Inc., (2)		101,303
	26,800	Burger King Holdings Inc.		741,288
	1,220	Carnival Corporation		49,190
	32,100	McDonald’s Corporation		1,790,217
	33,650	Royal Caribbean Cruises Limited		1,107,085
	3,680	WMS Industries Inc., (2)		132,370
	10,580	Wynn Resorts Ltd.		1,064,771

		Total Hotels, Restaurants & Leisure		4,986,224


		Household Durables – 0.0%

	2,050	Desarrolladora Homex SAB de C.V., Sponsored ADR		119,003
	4,400	Matsushita Electric Industrial Co., Ltd., ADR		95,524
	6,210	Tupperware Corporation		240,203

		Total Household Durables		454,730


		Household Products – 0.4%

	52,430	Colgate-Palmolive Company		4,084,821
	82,000	KAO Corporation		2,333,230

		Total Household Products		6,418,051


		Independent Power Producers & Energy Traders – 0.1%

	30,280	NRG Energy Inc., (2)		1,180,617


		Industrial Conglomerates – 0.5%

	27,790	East Asiatic Co., LTD.		2,441,421
	344,660	Keppel Corporation		2,508,978
	22,530	Siemens AG, Sponsored ADR		2,454,418
	4,480	Teleflex Inc.		213,741

		Total Industrial Conglomerates		7,618,558


		Insurance – 0.9%

	1,040	Aegon N.V.		15,226
	46,758	AFLAC Incorporated		3,036,932
	10,930	American International Group, Inc.		472,723
	13,890	Amtrust Financial Services, Inc.		225,157
	22,710	Aon Corporation		912,942
	17,870	Arch Capital Group Limited, (2)		1,227,133
	5,400	Aspen Insurance Holdings Limited		142,452
	11,780	Axis Capital Holdings Limited		400,284
	345,100	Benfield Group, Limited		1,706,827
	5,470	Fairfax Financial Holdings Limited		1,570,437
	13,440	HCC Insurance Holdings Inc.		304,954
	7,270	Philadelphia Consolidated Holding Corporation, (2)		234,094
	9,020	Power Financial Corporation		308,532
	11,210	Seabright Insurance Holdings Inc., (2)		165,123
	32,690	Sun Life Financial Inc.		1,523,354
	7,350	Tower Group Inc.		185,000
	89,250	WR Berkley Corporation		2,471,333
	1,730	Zurich Financial Services AG		545,310

		Total Insurance		15,447,813


		Internet & Catalog Retail – 0.2%

	22,810	Amazon.com, Inc., (2)		1,626,353
	184,690	Home Retail Group		958,667

		Total Internet & Catalog Retail		2,585,020


		Internet Software & Services – 0.2%

	10,610	Blue Coat Systems Inc.		233,844
	90,000	eBay Inc., (2), (11)		2,685,600

		Total Internet Software & Services		2,919,444


		IT Services – 0.3%

	45,470	Accenture Limited		1,599,180
	16,970	CGI Group Inc., (2)		179,882
	9,860	Convergys Corporation, (2)		148,492
	140,000	Electronic Data Systems Corporation, (11)		2,331,000
	8,470	Savvis Inc., (2)		137,807
	7,670	TNS Inc.		158,309

		Total IT Services		4,554,670


		Leisure Equipment & Products – 0.2%

	2,840	Canon Inc.		131,691
	19,370	Fuji Photo Film Co., Ltd.		692,338
	10,890	FujiFilm Holdings Corporation, ADR		387,031
	40,434	Hasbro, Inc.		1,128,109
	14,860	Marvel Entertainment Inc., (2)		398,099

		Total Leisure Equipment & Products		2,737,268


		Life Sciences Tools & Services – 0.1%

	3,600	Dionex Corporation, (2)		277,164
	7,490	Illumina Inc., (2)		568,491

		Total Life Sciences Tools & Services		845,655


		Machinery – 0.8%

	77,850	ABB Limited		2,095,722
	45,080	AGCO Corporation, (2)		2,699,390
	10,990	Deere & Company		884,036
	27,448	Harsco Corporation		1,520,070
	10,830	ITT Industries Inc.		561,102
	16,260	MAN AG		2,159,413
	42,100	Manitowoc Company Inc.		1,717,680
	211,160	Mitsui Engineering & Shipbuilding Company Limited		572,097
	11,510	Pall Corporation		403,656
	7,737	Parker Hannifin Corporation		535,942
	10,670	RBC Bearings Inc., (2)		396,177
	5,750	Robbins & Myers, Inc.		187,738

		Total Machinery		13,733,023


		Marine – 0.2%

	250,340	Kawasaki Kisen Kaisha Limited		2,457,280


		Media – 0.3%

	74,890	DIRECTV Group, Inc., (2)		1,856,523
	8,240	Echostar Communications Corporation, (2)		236,735
	65,250	Eniro AB		475,612
	22,450	ProSiebensati Media AG		485,050
	300	Scholastic Corporation, (2)		9,081
	860	Shaw Communication Inc.		15,635
	9,830	Thomson Corporation		329,600
	31,120	Walt Disney Company		976,546
	1,080	WPP Group PLC		64,411

		Total Media		4,449,193


		Metals & Mining – 3.7%

	277,200	AngloGold Ashanti Limited, Sponsored ADR, (11)		9,413,712
	276,900	Apex Silver Mines Limited, (2)		3,356,028
	144,800	Barrick Gold Corporation		6,291,560
	17,590	BHP Billiton PLC		518,094
	13,650	BHP Billiton PLC		801,938
	83,770	BHP Billiton PLC		2,752,765
	4,580	Compass Minerals International, Inc.		270,128
	204,690	Cookson Group		2,700,628
	319,100	Crystallex International Corporation, (2)		724,357
	25,890	Freeport-McMoRan Copper & Gold, Inc.		2,491,136
	286,100	Gold Fields Limited, (11)		3,956,763
	2,015,500	Lihir Gold Limited, (2)		6,431,321
	604,210	Mitsubishi Materials		2,652,562
	235,100	Newmont Mining Corporation, (11)		10,650,030
	265,900	NovaGold Resources Inc., (2), (11)		2,050,089
	4,710	Olympic Steel Inc.		212,421
	6,010	Rio Tinto PLC, Sponsored ADR		2,475,158
	81,490	SSAB Svenskt Stal AB		2,295,104
	6,920	Stillwater Mining Company, (2)		107,052

		Total Metals & Mining		60,150,846


		Multiline Retail – 0.5%

	42,470	Big Lots, Inc., (2)		947,081
	55,450	Costco Wholesale Corporation		3,602,587
	11,830	Dollar Tree Stores Inc., (2)		326,390
	161,810	Next PLC		3,665,428

		Total Multiline Retail		8,541,486


		Multi-Utilities – 0.1%

	63,560	National Grid Group PLC		878,340


		Oil, Gas & Consumable Fuels – 3.3%

	22,100	Arch Coal Inc.		961,350
	167,060	BP Amoco PLC, (11)		10,132,189
	9,720	Cabot Oil & Gas Corporation		494,165
	3,780	Carrizo Oil & Gas, Inc., (2)		224,041
	58,710	Chesapeake Energy Corporation		2,709,467
	18,150	Chevron Corporation		1,549,284
	5,740	Comstock Resources Inc.		231,322
	28,530	Denbury Resources Inc., (2)		814,532
	41,340	Eni S.p.A., Sponsored ADR		2,815,667
	14,550	EOG Resources, Inc.		1,746,000
	10,010	Frontier Oil Corporation		272,873
	38,300	Hess Corporation		3,377,294
	33,250	Murphy Oil Corporation		2,731,155
	86,500	Nexen Inc., (11)		2,561,265
	23,550	Occidental Petroleum Corporation		1,723,154
	10,700	Petrohawk Energy Corporation, (2)		215,819
	21,830	Petroquest Energy Inc., (2)		378,532
	22,567	Pioneer Drilling Company, (2)		359,492
	50,110	Repsol YPF S.A.		1,724,285
	111,100	Royal Dutch Shell PLC, Class B, Sponsored ADR, (11)		7,485,918
	101,050	Singapore Petroleum		499,860
	270,323	Statoil ASA, (11)		8,074,548
	28,620	Total S.A., Sponsored ADR		2,118,166
	8,880	Total S.A.		657,865
	4,900	Valero Energy Corporation		240,639
	8,020	XTO Energy, Inc.		496,117

		Total Oil, Gas & Consumable Fuels		54,594,999


		Paper & Forest Products – 0.3%

	14,390	Aracruz Celulose S.A.		982,261
	8,170	Buckeye Technologies Inc., (2)		91,177
	9,610	Potlatch Corporation		396,605
	13,750	Rayonier Inc.		597,300
	11,320	Stora Enso Oyj, R Shares		130,904
	74,190	Votorantim Celulose e Papel S.A.		2,115,157

		Total Paper & Forest Products		4,313,404


		Personal Products – 0.1%

	23,670	Herbalife, Limited		1,124,325
	4,680	Oriflame Cosmetics S.A.		311,112

		Total Personal Products		1,435,437


		Pharmaceuticals – 1.6%

	24,100	Astellas Pharma Inc.		946,489
	181,990	AstraZeneca Group, (11)		6,913,800
	114,430	Daiichi Sankyo Company Limited		3,394,721
	37,640	Eli Lilly and Company		1,941,848
	9,200	GlaxoSmithKline PLC, ADR		390,356
	28,730	H. Lundbeck A/S		720,630
	139,000	Kissei Pharmaceuticals Company Limited		2,932,954
	28,800	Merck & Co. Inc.		1,092,960
	3,990	Novo Nordisk A/S		274,573
	271,700	Patheon Inc., (2)		802,037
	45,420	Pfizer Inc.		950,641
	11,580	Pozen Inc., (2)		119,969
	90,580	Sanofi-Aventis, ADR, (11)		3,400,373
	49,240	Shionogi & Company Limited		846,818
	21,840	Shire Pharmaceuticals Group		422,763
	54,665	Warner Chilcott Limited, (2)		983,970

		Total Pharmaceuticals		26,134,902


		Real Estate/Mortgage – 0.3%

	30,590	Annaly Capital Management Inc.		468,639
	8,767	LaSalle Hotel Properties		251,876
	10,550	Lexington Corporate Properties Trust		152,026
	8,920	Macerich Company		626,808
	10,264	SL Green Realty Corporation		836,208
	13,597	Tanger Factory Outlet Centers		523,077
	20,554	Taubman Centers Inc.		1,070,863
	1,089,583	Wing Tai Holdings Limited		1,747,024

		Total Real Estate/Mortgage		5,676,521


		Real Estate Management & Development – 0.0%

	129,610	New World Development Company, Limited		318,815


		Road & Rail – 0.4%

	1,250	Canadian National Railways Company		60,400
	59,130	CSX Corporation		3,315,419
	25,760	Hertz Global Holdings, Inc., (2)		310,666
	17,870	Kansas City Southern Industries, (2)		716,766
	20,080	Landstar System		1,047,373
	8,200	Union Pacific Corporation		1,028,116

		Total Road & Rail		6,478,740


		Semiconductors & Equipment – 0.2%

	16,690	Amkor Technology Inc., (2)		178,583
	8,550	Monolithic Power Systems, Inc., (2)		150,737
	91,510	National Semiconductor Corporation		1,676,463
	6,670	Rubicon Technology Inc., (2)		193,297
	20,120	Semtech Corporation, (2)		288,320
	117,618	Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR		1,207,937

		Total Semiconductors & Equipment		3,695,337


		Software – 0.7%

	61,940	Activision Inc., (2)		1,691,581
	53,150	Adobe Systems Incorporated, (2)		1,891,609
	8,920	Ansys Inc., (2)		307,918
	58,890	Autodesk, Inc., (2)		1,853,857
	7,994	Blackbaud, Inc.		194,094
	7,800	Blackboard, Inc., (2)		259,974
	65,000	Microsoft Corporation, (11)		1,844,700
	28,820	Salesforce.com, Inc., (2)		1,667,813
	7,720	SPSS Inc., (2)		299,382
	77,570	Symantec Corporation, (2)		1,289,213

		Total Software		11,300,141


		Specialty Retail – 0.3%

	8,540	Aeropostale, Inc., (2)		231,519
	17,680	GameStop Corporation		914,233
	25,230	Gap, Inc.		496,526
	3,515	Hennes & Mauritz AB		216,380
	6,200	J. Crew Group Inc., (2)		273,854
	13,790	NetFlix.com Inc.		477,823
	760	Sony Corporation		30,452
	58,850	TJX Companies, Inc.		1,946,169

		Total Specialty Retail		4,586,956


		Textiles, Apparel & Luxury Goods – 0.1%

	2,780	Deckers Outdoor Corporation, (2)		299,739
	860	Gildan Activewear Inc, Sponsored ADR, (2)		32,129
	19,638	Guess Inc.		794,749

		Total Textiles, Apparel & Luxury Goods		1,126,617


		Thrifts & Mortgage Finance – 0.2%

	224,530	Hudson City Bancorp, Inc.		3,969,690


		Tobacco – 0.4%

	30,000	Altria Group, Inc.		665,999
	15,820	British American Tobacco PLC		1,198,364
	350	Japan Tobacco, Inc.		1,750,872
	30,000	Philip Morris International		1,517,399
	30,790	UST Inc.		1,678,670

		Total Tobacco		6,811,304


		Transportation Infrastructure – 0.2%

	1,226,750	Macquarie Airports		3,646,326


		Wireless Telecommunication Services – 0.2%

	23,720	Millicom International Cellular S.A.		2,242,725
	1,730	Mobile Telesystems, Sponsored ADR		131,220

		Total Wireless Telecommunication Services		2,373,945

		Total Common Stocks (cost $658,613,768)		630,405,099


Shares		Description (1)	Coupon	Ratings (3)	Value


		Convertible Preferred Securities – 1.6% (1.0% of Total Investments)

		Automobiles – 0.3%

	42,300	General Motors Corporation, Convertible Bonds	1.500%	B-	$	968,670
	79,550	General Motors Corporation, Convertible Notes, Senior Debentures, Series B	5.250%	B-		1,291,097
	129,800	General Motors Corporation	6.250%	B-		2,141,700

		Total Automobiles				4,401,467


		Capital Markets – 0.0%

	15,800	AMG Capital Trust II, Convertible Bond	5.150%	BB		606,325


		Commercial Banks – 0.0%

	20,650	Sovereign Capital Trust IV, Convertible Security	4.375%	Baa1		632,406


		Communications Equipment – 0.5%

	12,500	Lucent Technologies Capital Trust I	7.750%	B2		8,750,000


		Diversified Financial Services – 0.1%

	43,100	Citigroup Inc., Series T	6.500%	A		2,046,388


		Electric Utilities – 0.1%

	26,400	Centerpoint Energy Inc.	2.000%	BBB-		765,072
	5,600	CMS Energy Corporation, Convertible Bonds	4.500%	Ba2		402,850

		Total Electric Utilities				1,167,922


		Food Products – 0.0%

	4,050	Bunge Limited, Convertible Bonds	4.875%	BB		460,688


		Household Durables – 0.1%

	16,800	Newell Financial Trust I	5.250%	BBB-		762,300


		Independent Power Producers & Energy Traders – 0.1%

	400	NRG Energy Inc., Convertible Bond	4.000%	B2		801,120


		Metals & Mining – 0.1%

	1,100	Freeport McMoran Copper & Gold, Inc.	5.500%	B-		2,333,375


		Oil, Gas & Consumable Fuels – 0.1%

	750	El Paso Corporation	4.990%	B		1,020,000


		Real Estate – 0.1%

	13,100	Simon Property Group, Inc., Series I	6.000%	BBB+		994,028


		Thrifts & Mortgage Finance – 0.1%

	42,650	Washington Mutual, Inc., Unit 1 Trust	5.375%	A3		1,211,260


		U.S. Agency – 0.0%

	7	Federal National Mortgage Association	5.375%	AA-		469,874

		Total Convertible Preferred Securities (cost $30,801,095)				25,657,153


Shares		Description (1)	Coupon	Ratings (3)	Value


		$25 Par (or similar) Preferred Securities – 50.7% (31.6% of Total Investments)

		Capital Markets – 3.5%

	221,874	BNY Capital Trust V, Series F	5.950%	Aa3	$	4,759,197
	1,195,600	Deutsche Bank Capital Funding Trust II	6.550%	Aa3		26,040,168
	23,000	First Union Institutional Capital II (CORTS)	8.200%	A1		575,000
	1,200	Goldman Sachs Capital I (CORTS)	6.000%	A1		25,740
	12,000	Goldman Sachs Capital I, Series A (CORTS)	6.000%	A1		245,520
	3,000	Goldman Sachs Group Inc., (CORTS)	6.300%	A		64,170
	5,600	Goldman Sachs Group Inc., Series 2003-11 (SATURNS)	5.625%	Aa3		110,208
	7,600	Goldman Sachs Group Inc., Series 2004-04 (SATURNS)	6.000%	A1		155,800
	2,900	Goldman Sachs Group Inc., Series 2004-06 (SATURNS)	6.000%	A1		59,015
	16,200	Goldman Sachs Group Inc., Series 2004-4 (CORTS)	6.000%	A1		332,748
	20,200	Goldman Sachs Group Inc., Series GSC-3 (PPLUS)	6.000%	A1		388,042
	7,900	Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)	6.000%	A1		152,944
	6,500	Goldman Sachs Group Inc., Series GSG-1 (PPLUS)	6.000%	AA-		139,100
	4,500	Goldman Sachs Group Inc., Series GSG-2 (PPLUS)	5.750%	AA-		91,125
	339,545	Merrill Lynch Preferred Capital Trust III	7.000%	A2		6,913,136
	19,700	Merrill Lynch Preferred Capital Trust IV	7.120%	A2		419,413
	225,600	Merrill Lynch Preferred Capital Trust V	7.280%	A2		4,827,840
	191,992	Morgan Stanley Capital Trust III	6.250%	A1		3,891,678
	113,125	Morgan Stanley Capital Trust IV	6.250%	A1		2,274,944
	12,794	Morgan Stanley Capital Trust V	5.750%	A+		245,005
	267,700	Morgan Stanley Capital Trust VI	6.600%	A1		5,755,550
	23,058	Morgan Stanley Capital Trust VII	6.600%	A1		493,441

		Total Capital Markets				57,959,784


		Commercial Banks – 9.9%

	651,200	ABN AMRO Capital Fund Trust V	5.900%	A1		12,932,832
	116,700	ASBC Capital I	7.625%	A3		2,905,830
	93,595	BAC Capital Trust I	7.000%	Aa2		2,264,063
	553,449	BAC Capital Trust II	7.000%	Aa2		13,404,535
	91,600	BAC Capital Trust III	7.000%	Aa2		2,222,216
	13,600	BAC Capital Trust IV	5.875%	Aa2		289,952
	12,100	BAC Capital Trust V	6.000%	Aa3		257,125
	9,500	BAC Capital Trust VIII	6.000%	Aa2		200,830
	504,642	Banco Santander Finance	6.800%	Aa3		11,228,285
	897,198	Banco Santander Finance	6.500%	A		19,065,458
	65,911	Banco Santander Finance	6.410%	Aa3		1,544,295
	28,800	Banesto Holdings, Series A, 144A	10.500%	A1		911,701
	154,700	Bank One Capital Trust VI	7.200%	Aa3		3,825,731
	187,590	Barclays Bank PLC	7.750%	Aa3		4,689,750
	40,542	Barclays Bank PLC	6.625%	Aa3		962,062
	36,700	Capital One Capital II Corporation	7.500%	Baa1		722,990
	141,700	Citizens Funding Trust I	7.500%	Baa1		2,437,240
	146,500	Cobank ABC, 144A	7.000%	A		6,556,608
	419,100	Credit Suisse Guernsey	7.900%	Aa3		10,556,081
	52,900	Fifth Third Capital Trust VI	7.250%	A1		1,150,575
	2,400	Fleet Capital Trust IX	6.000%	Aa2		50,904
	418,000	Fleet Capital Trust VIII	7.200%	Aa2		10,032,000
	57,700	HSBC Finance Corporation	6.875%	AA-		1,391,147
	83,705	KeyCorp Capital Trust IX	6.750%	A3		1,673,263
	1,300	KeyCorp Capital Trust V	5.875%	A3		23,400
	1,300	KeyCorp Capital Trust VI	6.125%	A3		25,402
	757,338	National City Capital Trust II	6.625%	BBB+		12,799,012
	8,728	National City Capital Trust IV	8.000%	A2		172,640
	21,700	ONB Capital Trust II	8.000%	A3		542,283
	25,700	PNC Capital Trust	6.125%	A2		558,975
	176,800	Royal Bank of Scotland Group PLC	6.600%	Aa3		3,942,640
	41,890	Royal Bank of Scotland Group PLC, Series L	5.750%	A1		825,233
	57,600	Royal Bank of Scotland Group PLC, Series M	6.400%	A1		1,304,640
	125,740	Royal Bank of Scotland Group PLC, Series N	6.350%	A1		2,776,339
	500	Royal Bank of Scotland Group PLC, Series P	6.250%	A1		10,820
	13,900	Royal Bank of Scotland Group PLC, Series T	7.250%	Aa3		340,133
	15,200	SunAmerica (CORTS)	6.700%	AA		332,880
	400	USB Capital Trust VI	5.750%	Aa3		7,928
	5,000	USB Capital Trust VII	5.875%	Aa3		100,700
	65,700	USB Capital Trust XI	6.600%	Aa3		1,497,303
	27,340	VNB Capital Trust I	7.750%	A3		683,500
	142,870	Wachovia Capital Trust IX	6.375%	A1		3,048,846
	285,891	Wachovia Trust IV	6.375%	A1		6,103,773
	432,035	Wells Fargo Capital Trust V	7.000%	Aa2		10,399,082
	111,882	Wells Fargo Capital Trust VII	5.850%	Aa2		2,437,909
	8,500	Wells Fargo Capital Trust IX	5.625%	Aa2		183,090
	114,700	Zions Capital Trust B	8.000%	BBB-		2,823,914

		Total Commercial Banks				162,215,915


		Computers & Peripherals – 0.0%

	1,000	IBM Corporation, Class A (CORTS)	5.625%	A+		23,990
	17,000	IBM Trust IV (CORTS)	7.000%	A+		436,560

		Total Computers & Peripherals				460,550


		Consumer Finance – 0.0%

	12,200	MBNA Corporation, Capital Trust D	8.125%	Aa2		303,170


		Diversified Financial Services – 5.6%

	95,400	BAC Capital Trust XII	6.875%	Aa3		2,257,164
	174,400	Citigroup Capital Trust VII	7.125%	A1		3,857,728
	729,022	Citigroup Capital Trust VIII	6.950%	A1		15,929,131
	20,600	Citigroup Capital Trust IX	6.000%	A1		406,438
	14,100	Citigroup Capital Trust XI	6.000%	A1		276,924
	9,100	Citigroup Capital X	6.100%	A1		176,540
	257,721	Citigroup Capital XV	6.500%	A1		5,376,060
	26,300	Citigroup Capital XVI	6.450%	A1		533,890
	708,500	Citigroup Capital XIX	7.250%	A1		16,281,330
	75,000	Citigroup Inc., Series M	8.125%	A		1,804,688
	300	General Electric Capital Corporation	6.000%	AAA		7,572
	327,900	ING Groep N.V.	7.375%	A1		8,048,306
	568,920	ING Groep N.V.	7.200%	A1		13,699,594
	718,475	ING Groep N.V.	7.050%	A		16,848,239
	37,200	ING Groep N.V.	6.375%	A1		814,308
	7,900	JPMorgan Chase Capital Trust XIV	6.200%	Aa3		183,043
	223,100	Merrill Lynch Capital Trust I	6.450%	A		4,441,921
	13,000	Royal Bank of Scotland Group PLC, Series R	6.125%	A1		276,250

		Total Diversified Financial Services				91,219,126


		Diversified Telecommunication Services – 1.3%

	620,100	AT&T Inc.	6.375%	A		15,490,098
	38,500	BellSouth Capital Funding (CORTS)	7.100%	A		872,268
	30,500	BellSouth Corporation (CORTS)	7.000%	A		688,156
	28,000	Verizon Communications (CORTS)	7.625%	A		702,240
	151,800	Verizon Communications, Series 2004-1 (SATURNS)	6.125%	A		3,678,114

		Total Diversified Telecommunication Services				21,430,876


		Electric Utilities – 0.9%

	50,000	American Electric Power	8.750%	Baa3		1,263,750
	10,300	DTE Energy Trust I	7.800%	Baa3		261,826
	1,700	Entergy Arkansas Inc.	6.700%	AAA		43,775
	2,400	Entergy Arkansas Inc.	6.000%	AAA		60,960
	28,900	Entergy Louisiana LLC	7.600%	A-		728,858
	5,300	Entergy Mississippi Inc.	7.250%	A-		132,818
	1,800	Entergy Mississippi Inc.	6.000%	AAA		44,784
	51,600	FPL Group Capital Inc.	6.600%	A3		1,295,676
	6,000	National Rural Utilities Cooperative Finance Corporation	6.750%	A3		145,440
	8,600	National Rural Utilities Cooperative Finance Corporation	6.100%	A3		194,876
	2,500	National Rural Utilities Cooperative Finance Corporation	5.950%	A3		57,900
	9,300	PPL Capital Funding, Inc.	6.850%	Baa2		226,269
	15,000	PPL Energy Supply LLC	7.000%	BBB		377,850
	122,500	Virginia Power Capital Trust	7.375%	BBB		3,083,325
	258,500	Xcel Energy Inc.	7.600%	Baa2		6,426,956

		Total Electric Utilities				14,345,063


		Food Products – 0.2%

	35,100	Dairy Farmers of America Inc., 144A	7.875%	BBB-		3,007,631


		Insurance – 11.2%

	1,210,933	Ace Ltd., Series C	7.800%	BBB		29,958,482
	12,600	Aegon N.V., Series 1	4.000%	A-		228,060
	10,000	Aegon N.V.	6.875%	A-		225,100
	3,500	Aegon N.V.	6.500%	A-		75,495
	1,420,300	Aegon N.V.	6.375%	A-		28,832,090
	3,000	Aegon N.V.	7.250%	A-		70,290
	12,233	AMBAC Financial Group Inc.	5.950%	AA		165,268
	238,113	Arch Capital Group Limited, Series B	7.785%	BBB-		6,012,353
	392,973	Arch Capital Group Limited	8.000%	BBB-		10,028,671
	709,600	Berkley WR Corporation, Capital Trust II	6.750%	BBB-		14,830,640
	677,301	Delphi Financial Group, Inc.	8.000%	BBB+		15,584,696
	32,500	Delphi Financial Group, Inc.	7.376%	BBB-		617,825
	6,000,000	Everest Reinsurance Holdings, Inc.	6.600%	Baa1		5,065,440
	200,456	EverestRe Capital Trust II	6.200%	Baa1		4,021,147
	7,800	Financial Security Assurance Holdings	6.250%	AA		166,842
	6,100	Financial Security Assurance Holdings	5.600%	AA		118,950
	1,395,900	Lincoln National Capital Trust VI	6.750%	A-		32,943,240
	4,000	Lincoln National Corporation	6.750%	A-		96,400
	123,700	Markel Corporation	7.500%	BBB-		3,043,020
	897,802	PartnerRe Limited, Series C	6.750%	BBB+		20,398,061
	146,500	PLC Capital Trust III	7.500%	BBB+		3,502,815
	6,800	PLC Capital Trust IV	7.250%	BBB+		160,684
	28,900	PLC Capital Trust V	6.125%	BBB+		578,000
	40,700	Protective Life Corporation	7.250%	BBB		974,358
	39,343	Prudential PLC	6.750%	A		934,396
	124,700	RenaissanceRe Holdings Limited, Series B	7.300%	BBB		2,719,707
	35,600	RenaissanceRe Holdings Limited, Series C	6.080%	BBB+		674,620
	26,200	RenaissanceRe Holdings Ltd.	6.600%	BBB		541,030
	3,300	Torchmark Capital Trust III	7.100%	BBB+		79,134

		Total Insurance				182,646,814


		IT Services – 0.0%

	2,700	Vertex Industries Inc. (PPLUS)	7.625%	A		67,959


		Media – 3.2%

	29,700	CBS Corporation	7.250%	BBB		719,631
	556,900	CBS Corporation	6.750%	BBB		12,301,921
	1,038,100	Comcast Corporation	7.000%	BBB+		24,447,255
	14,200	Comcast Corporation	6.625%	BBB+		321,772
	649,400	Viacom Inc.	6.850%	BBB		15,111,538
	1,400	Walt Disney Company (CORTS)	6.875%	A		35,014

		Total Media				52,937,131


		Oil, Gas & Consumable Fuels – 1.0%

	680,500	Nexen Inc.	7.350%	Baa3		16,325,195


		Pharmaceuticals – 0.1%

	49,200	Bristol Myers Squibb Company (CORTS)	6.250%	A+		1,115,856


		Real Estate/Mortgage – 11.7%

	15,700	AMB Property Corporation, Series P	6.850%	Baa2		368,793
	77,100	AvalonBay Communities, Inc., Series H	8.700%	BBB		1,964,508
	4,000	BRE Properties, Series C	6.750%	BBB-		85,520
	9,100	BRE Properties, Series D	6.750%	BBB-		194,422
	104,300	Developers Diversified Realty Corporation, Series G	8.000%	BBB-		2,503,200
	1,265,945	Developers Diversified Realty Corporation, Series H	7.375%	BBB-		27,129,201
	126,000	Duke Realty Corporation, Series L	6.600%	BBB		2,783,340
	31,700	Duke Realty Corporation, Series N	7.250%	BBB		735,757
	481,220	Duke Realty Corporation, Series O	8.375%	BBB		11,813,951
	104,400	Duke-Weeks Realty Corporation	6.950%	BBB		2,345,868
	96,000	Duke-Weeks Realty Corporation	6.625%	BBB		2,079,360
	312,323	Equity Residential Properties Trust, Series N	6.480%	BBB		6,849,243
	4,700	First Industrial Realty Trust, Inc., Series J	7.250%	BBB-		98,465
	1,800	First Industrial Realty Trust, Inc., Series J	7.250%	BBB-		37,170
	401,683	HRPT Properties Trust, Series B	8.750%	BBB-		9,624,325
	533,000	HRPT Properties Trust, Series C	7.125%	BBB-		10,233,600
	581,600	Kimco Realty Corporation, Series G	7.750%	BBB+		13,856,620
	3,997	Prologis Trust, Series C	8.540%	BBB		212,091
	55,275	Prologis Trust, Series G	6.750%	BBB		1,296,199
	11,600	PS Business Parks, Inc.	6.700%	BBB-		232,116
	412,088	PS Business Parks, Inc.	7.000%	BBB-		9,000,002
	4,800	PS Business Parks, Inc., Series I	6.875%	BBB-		101,040
	700	PS Business Parks, Inc., Series K	7.950%	BBB-		16,695
	243,000	PS Business Parks, Inc., Series L	7.600%	BBB-		5,578,065
	131,900	PS Business Parks, Inc., Series O	7.375%	BBB-		2,938,073
	249,836	Public Storage, Inc.	6.750%	BBB+		5,433,933
	3,000	Public Storage, Inc., Series N	7.000%	BBB+		68,400
	63,900	Public Storage, Inc., Series C	6.600%	BBB+		1,367,460
	149,000	Public Storage, Inc., Series E	6.750%	BBB+		3,225,850
	21,400	Public Storage, Inc., Series F	6.450%	BBB+		435,490
	16,511	Public Storage, Inc., Series H	6.950%	BBB+		373,314
	19,000	Public Storage, Inc., Series I	7.250%	BBB+		454,290
	40,000	Public Storage, Inc., Series K	7.250%	BBB+		947,600
	726,938	Public Storage, Inc., Series M	6.625%	BBB+		15,127,580
	31,500	Public Storage, Inc., Series V	7.500%	BBB+		761,355
	33,403	Realty Income Corporation, Series E	6.750%	BBB-		705,137
	166,100	Regency Centers Corporation	7.450%	BBB		3,835,249
	6,300	United Dominion Realty Trust	6.750%	BBB-		148,775
	169,000	Vornado Realty Trust, Series G	6.625%	BBB-		3,523,650
	185,000	Vornado Realty Trust, Series H	6.750%	BBB-		3,905,350
	1,542,834	Wachovia Preferred Funding Corporation	7.250%	A2		36,534,309
	126,800	Weingarten Realty Trust, Series E	6.950%	A-		2,884,700

		Total Real Estate/Mortgage				191,810,066


		Thrifts & Mortgage Finance – 1.6%

	70,600	Countrywide Capital Trust III (PPLUS)	8.050%	BBB-		1,225,616
	601,104	Countrywide Capital Trust IV	6.750%	BBB-		10,230,790
	546,678	Countrywide Capital Trust V	7.000%	BBB-		9,129,522
	50,200	Federal Home Loan Mortgage Corporation, Notes	5.570%	AA-		958,819
	42,200	Federal Home Loan Mortgage Corporation	6.550%	AA-		947,389
	175,000	Federal Home Loan Mortgage Corporation	8.375%	AA-		4,269,999

		Total Thrifts & Mortgage Finance				26,762,135


		U.S. Agency – 0.4%

	139,000	Federal National Mortgage Association	7.000%	AA-		6,298,438


		Wireless Telecommunication Services – 0.1%

	52,800	United States Cellular Corporation	8.750%	A-		1,320,528

		Total $25 Par (or similar) Preferred Securities (cost $931,447,289)				830,226,237


			Weighted
Principal			Average
Amount (000)		Description (1)	Coupon	Maturity (4)	Ratings (3)	Value


		Variable Rate Senior Loan Interests – 11.8% (7.4% of Total Investments) (5)

		Aerospace & Defense – 0.1%

$	574	DAE Aviation Holdings, Inc., Term Loan B-1	6.990%	7/31/14	BB-	$	555,439
	571	DAE Aviation Holdings, Inc., Term Loan B-2	6.990%	7/31/13	BB-		551,708

	1,145	Total Aerospace & Defense					1,107,147


		Airlines – 0.3%

	2,504	ACTS Aero Technical Support & Services Inc., Term Loan	7.305%	10/01/14	N/R		2,178,172
	992	American Airlines, Inc., Term Loan	6.801%	12/17/10	BB-		912,616
	1,985	Delta Air Lines, Inc., Term Loan	8.082%	4/30/14	B		1,585,023

	5,481	Total Airlines					4,675,811


		Building Products – 0.5%

	3,568	Building Materials Corporation of America, Term Loan	6.688%	2/22/14	BB		2,866,834
	2,977	Nortek, Inc., Term Loan B	5.350%	8/27/11	Ba3		2,579,948
	989	Stile Acquisition Corporation, Canadian Term Loan	5.184%	4/05/13	BB-		852,290
	991	Stile Acquisition Corporation, Term Loan B	5.183%	4/05/13	BB-		853,738
	985	TFS Acquisition, Term Loan	6.196%	8/11/13	B+		916,050

	9,510	Total Building Products					8,068,860


		Chemicals – 0.4%

	1,990	Celanese Holdings LLC, Term Loan	6.229%	4/02/14	BB+		1,860,627
	1,995	Georgia Gulf Corporation, Term Loan	5.580%	10/03/13	Ba3		1,819,129
	2,978	Hercules Offshore, Inc., Term Loan	4.450%	7/11/13	BB		2,836,069

	6,963	Total Chemicals					6,515,825


		Commercial Services & Supplies – 0.2%

	213	Aramark Corporation, Letter of Credit	0.000%	1/24/14	BB-		198,747
	3,349	Aramark Corporation, Term Loan	4.571%	1/24/14	BB-		3,128,405

	3,562	Total Commercial Services & Supplies					3,327,152


		Diversified Consumer Services – 0.3%

	258	Laureate Education, Inc., Delayed Draw, Term Loan B, (6), (7)	0.500%	8/17/14	B		(24,903	)
	1,738	Laureate Education, Inc., Term Loan B	6.068%	8/17/14	B1		1,569,904
	2,985	Thomson Learning Center, Term Loan	5.200%	7/05/14	B+		2,574,563

	4,981	Total Diversified Consumer Services					4,119,564


		Diversified Telecommunication Services – 0.2%

	2,985	Alltel Communications, Inc., Term Loan B3	5.568%	5/18/15	BB-		2,700,180
	501	Intelsat, Tranche B-2, Term Loan A	5.611%	1/03/14	BB-		459,529
	501	Intelsat, Tranche B-2, Term Loan B	5.611%	1/03/14	BB-		459,391
	501	Intelsat, Tranche B-2, Term Loan C	5.611%	1/03/14	BB-		459,391

	4,488	Total Diversified Telecommunication Services					4,078,491


		Electric Utilities – 0.6%

	5,238	Calpine Corporation, DIP Term Loan	5.575%	3/31/14	B+		4,662,426
	1,995	TXU Corporation, Term Loan B-2	6.579%	10/10/14	Ba3		1,821,572
	3,990	TXU Corporation, Term Loan B-3	6.583%	10/10/14	Ba3		3,632,895

	11,223	Total Electric Utilities					10,116,893


		Electrical Equipment – 0.1%

	1,750	Allison Transmission Holdings, Inc., Term Loan	5.746%	8/07/14	BB-		1,542,500


		Energy Equipment & Services – 0.1%

	2,383	PGS Finance, Inc., Term Loan	4.450%	6/29/15	Ba2		2,246,292


		Health Care Equipment & Supplies – 0.4%

	120	Bausch & Lomb, Inc., Delayed Draw Term Loan, (6)	3.473%	4/24/15	BB-		56,795
	479	Bausch & Lomb, Inc., Term Loan	5.946%	4/24/15	BB-		466,014
	5,970	Biomet, Inc., Term Loan	5.696%	12/25/13	BB-		5,752,095

	6,569	Total Health Care Equipment & Supplies					6,274,904


		Health Care Providers & Services – 1.8%

	457	Community Health Systems, Inc., Delayed Draw, Term Loan, (6), (7)	0.750%	7/25/14	BB		(34,790	)
	8,941	Community Health Systems, Inc., Term Loan	5.335%	7/25/14	BB		8,260,927
	496	Concentra, Inc., Term Loan	4.946%	6/25/14	B+		420,572
	5,930	HCA, Inc., Term Loan	4.946%	11/18/13	BB		5,462,450
	1,781	HCA, Inc., Term Loan A	4.196%	11/18/12	Ba3		1,622,503
	2,734	Health Management Associates, Inc., Term Loan	4.446%	2/28/14	BB-		2,381,841
	529	IASIS Healthcare LLC, Delayed Term Loan	4.979%	3/14/14	Ba2		481,765
	191	IASIS Healthcare LLC, Letter of Credit	2.609%	3/14/14	Ba2		173,609
	2,259	IASIS Healthcare LLC, Term Loan	5.244%	3/14/14	Ba2		2,055,573
	1,747	LifePoint Hospitals, Inc., Term Loan B	4.710%	4/18/12	BB		1,617,544
	1,848	Select Medical Corporation, Term Loan	5.074%	2/24/12	Ba2		1,641,046
	993	Select Medical Corporation, Term Loan B-2	4.631%	2/24/12	Ba2		881,340
	359	Sun Healthcare Group, Inc., Delayed Term Loan	4.654%	4/12/14	Ba2		326,489
	566	Sun Healthcare Group, Inc., Synthetic Letter of Credit	4.596%	4/19/14	Ba2		515,458
	2,505	Sun Healthcare Group, Inc., Term Loan	5.539%	4/19/14	Ba2		2,279,668
	990	Vanguard Health Holding Company II LLC, Replacement Term Loan	4.954%	9/23/11	Ba3		921,147

	32,326	Total Health Care Providers & Services					29,007,142


		Hotels, Restaurants & Leisure – 0.7%

	1,980	Cedar Fair LP, Term Loan	4.704%	8/30/12	BB		1,837,033
	922	Intrawest Corporation, Term Loan	5.971%	4/24/08	N/R		894,305
	703	Isle of Capri Casinos, Inc., Term Loan	4.446%	11/25/13	BB+		596,790
	212	Isle of Capri Casinos, Inc., Delayed Term Loan A	4.446%	11/25/13	BB+		179,939
	281	Isle of Capri Casinos, Inc., Delayed Term Loan B	4.446%	11/25/13	BB+		238,716
	995	Orbitz Worldwide, Inc., Term Loan	5.895%	7/25/14	BB-		840,775
	134	Travelport, LLC, Letter of Credit	4.946%	8/23/13	BB-		117,563
	669	Travelport, LLC, Term Loan	4.954%	8/23/13	BB-		585,908
	2,000	Travelport, LLC, Delayed Term Loan	4.954%	8/23/13	BB-		1,750,000
	1,200	Venetian Casino Resort, LLC, Delayed Draw, Term Loan, (6), (7)	0.750%	5/23/14	BB		(136,772	)
	4,764	Venetian Casino Resort, LLC, Term Loan	4.450%	5/23/14	BB		4,221,014

	13,860	Total Hotels, Restaurants & Leisure					11,125,271


		Independent Power Producers & Energy Traders – 0.3%

	1,557	NRG Energy, Inc., Credit Linked Deposit	2.560%	2/01/13	Ba1		1,461,061
	3,198	NRG Energy, Inc., Term Loan	4.196%	2/01/13	Ba1		3,000,374

	4,755	Total Independent Power Producers & Energy Traders					4,461,435


		Insurance – 0.1%

	3,976	Conseco, Inc., Term Loan	4.704%	10/10/13	Ba3		3,095,024


		Internet Software & Services – 0.1%

	1,000	Sabre, Inc., Term Loan	5.244%	9/30/14	B+		823,500


		IT Services – 0.2%

	3,980	First Data Corporation, Term Loan, B-1	5.355%	9/24/14	BB-		3,594,161


		Leisure Equipment & Products – 0.4%

	400	Herbst Gaming Inc., Delayed Draw Term Loan, WI/DD	TBD	TBD	B2		286,800
	800	Herbst Gaming Inc., Term Loan, WI/DD	TBD	TBD	B2		573,600
	6,000	Wimar OpCo LLC, Term Loan	8.500%	1/03/12	B-		5,741,250

	7,200	Total Leisure Equipment & Products					6,601,650


		Machinery – 0.1%

	1,975	Oshkosh Truck Corporation, Term Loan	4.760%	12/06/13	BBB-		1,843,786


		Media – 2.5%

	3,962	Cequel Communications LLC, Term Loan B	6.510%	11/05/13	N/R		4,882,982
	4,075	Charter Communications Operating Holdings, LLC, Term Loan	5.260%	3/06/14	B+		3,452,713
	2,500	Citadel Broadcasting Corporation, Term Loan	4.319%	6/12/14	BB-		2,060,938
	5,965	Discovery Communications Holdings LLC, Term Loan	4.696%	5/14/14	N/R		5,491,505
	2,200	Gray Television Inc., Term Loan	6.210%	12/31/14	B1		1,850,200
	992	Idearc, Inc., Term Loan	4.700%	11/17/14	BBB-		798,560
	1,985	Metro-Goldwyn-Mayer Studios, Inc., Term Loan	5.946%	4/08/12	N/R		1,579,165
	3,950	Neilsen Finance LLC, Term Loan	5.346%	8/09/13	Ba3		3,574,675
	947	Philadelphia Newspapers, Term Loan	6.600%	6/29/13	N/R		785,604
	1,980	Readers Digest Association, Inc., Term Loan	5.075%	3/02/14	B+		1,636,470
	5,955	Tribune Company, Term Loan B	5.542%	6/04/14	BB-		4,005,803
	3,433	Tribune Company, Term Loan X	7.396%	6/04/09	BB-		3,088,160
	268	Univision Communications, Inc., Delayed Term Loan, (6), (7)	1.000%	9/29/14	Ba3		(56,040	)
	7,732	Univision Communications, Inc., Term Loan	5.494%	9/29/14	Ba3		6,117,584
	430	Valassis Communications, Inc., Delayed Term Loan, (6), (7)	1.000%	3/02/14	BB		(30,064	)
	1,299	Valassis Communications, Inc., Tranche B, Term Loan	4.450%	3/02/14	BB		1,208,490

	47,673	Total Media					40,446,745


		Metals & Mining – 0.1%

	1,200	John Maneely Company, Term Loan	7.461%	12/08/13	B+		1,037,143


		Oil, Gas & Consumable Fuels – 0.1%

	2,000	Venoco, Inc., Term Loan	7.125%	9/20/11	B		1,790,000


		Paper & Forest Products – 0.3%

	3,960	Georgia-Pacific Corporation, Term Loan B	4.727%	12/21/12	BB+		3,678,592
	45	Ply Gem Industries, Inc., Canadian Term Loan	5.450%	8/15/11	BB-		38,305
	1,435	Ply Gem Industries, Inc., Term Loan B-3	5.450%	8/15/11	BB-		1,227,541

	5,440	Total Paper & Forest Products					4,944,438


		Real Estate Management & Development – 0.2%

	880	LNR Property Corporation, Term Loan B	6.360%	7/12/11	BB		693,733
	3,980	Realogy Corporation, Delayed Draw Term Loan	7.505%	10/01/13	BB-		3,239,573

	4,860	Total Real Estate Management & Development					3,933,306


		Road & Rail – 0.3%

	6,419	Swift Transportation Company, Inc., Term Loan	6.500%	5/10/14	BB-		4,841,464


		Software – 0.2%

	2,688	Dealer Computer Services, Inc., Term Loan	4.678%	10/26/12	BB		2,446,013
	1,256	Intergraph Corporation, Term Loan	5.061%	5/29/14	BB-		1,139,885

	3,944	Total Software					3,585,898


		Specialty Retail – 0.8%

	1,972	Blockbuster, Inc., Tranche B, Term Loan	8.572%	8/20/11	B		1,775,946
	6,416	Burlington Coat Factory Warehouse Corporation, Term Loan	5.340%	5/28/13	B2		5,372,301
	3,451	Michaels Stores, Inc., Term Loan	5.345%	10/31/13	B		2,900,048
	1,500	TRU 2005 RE Holding Co I LLC, Term Loan	6.119%	12/08/08	B3		1,350,749
	1,800	TRU 2005 RE Holding Co I LLC, Term Loan B, WI/DD	TBD	TBD	BB-		1,639,799

	15,139	Total Specialty Retail					13,038,843


		Wireless Telecommunication Services – 0.4%

	6,000	Asurion Corporation, Term Loan	6.095%	7/03/14	N/R		5,109,998
	1,985	Leap Wireless International Inc., Term Loan	5.696%	6/17/13	Ba2		1,886,708

	7,985	Total Wireless Telecommunication Services					6,996,707

$	221,787	Total Variable Rate Senior Loan Interests (cost $213,993,797)					193,239,951


Principal
Amount (000)		Description (1)	Coupon	Maturity	Ratings (3)	Value


		Convertible Bonds – 9.4% (5.9% of Total Investments)

		Aerospace & Defense – 0.3%

$	300	Alliant Techsystems, Inc., Convertible Bonds	2.750%	9/15/11	B+	$	372,750
	300	Alliant Techsystems, Inc., Convertible Bonds	2.750%	2/15/24	B+		409,875
	650	DRS Technologies, Inc., Convertible Bonds, 144A	2.000%	2/01/26	BB-		735,313
	850	L-3 Communications Corporation, Convertible Bond	3.000%	8/01/35	BB+		1,065,688
	1,300	Lockheed Martin Corporation	2.818%	8/15/33	A-		1,786,980

	3,400	Total Aerospace & Defense					4,370,606


		Beverages – 0.0%

	450	Molson Coors Brewing Company, Senior Convertible Notes	2.500%	7/30/13	BBB		555,188


		Biotechnology – 0.3%

	4,700	Amgen Inc., 144A	0.125%	2/01/11	A+		4,282,875
	800	Genzyme Corporation	1.250%	12/01/23	BBB+		931,000

	5,500	Total Biotechnology					5,213,875


		Capital Markets – 0.1%

	350	BlackRock Inc.	2.625%	2/15/35	A+		721,875


		Commercial Banks – 0.0%

	700	National City Corporation, Convertible Senior Notes	4.000%	2/01/11	A		578,375


		Commercial Services & Supplies – 0.3%

	5,400	Allied Waste Industries Inc., Convertible Debentures	4.250%	4/15/34	B+		4,968,000


		Communications Equipment – 0.4%

	800	Ciena Corporation, Convertible Bond	0.875%	6/15/17	B+		769,000
	300	CommScope Inc.	1.000%	3/15/24	B		498,750
	350	Juniper Networks Inc., Convertible Subordinated Notes	0.000%	6/15/08	BB		443,188
	950	Liberty Media Corporation, Senior Debentures Exchangeable for Motorola Common Stock	3.500%	1/15/31	BB+		559,587
	700	Lucent Technologies Inc., Series B	2.750%	6/15/25	BB-		540,750
	1,050	Lucent Technologies Inc.	2.750%	6/15/23	BB-		935,813
	1,006	Nortel Networks Corp.	4.250%	9/01/08	B-		998,455
	1,000	Nortel Networks Corporation, Convertible Bonds, 144A	1.750%	4/15/12	B-		680,000
	850	Nortel Networks Corporation, Convertible Bonds, 144A	2.125%	4/15/14	B-		532,313

	7,006	Total Communications Equipment					5,957,856


		Computers & Peripherals – 0.3%

	1,750	EMC Corporation, Convertible Bonds 144A	1.750%	12/01/11	BBB+		2,067,188
	700	EMC Corporation, Convertible Bonds 144A	1.750%	12/01/13	BBB+		825,125
	350	EMC Corporation, Convertible Bonds 144A	1.750%	12/01/13	BBB+		412,563
	1,800	Sandisk Corporation, Convertible Bond	1.000%	5/15/13	BB-		1,332,000

	4,600	Total Computers & Peripherals					4,636,876


		Construction & Engineering – 0.1%

	350	Fluor Corporation, Convertible Bonds	1.500%	2/15/24	A3		887,250
	400	Quanta Services, Inc., Convertible Bonds	4.500%	10/01/23	BB		842,500

	750	Total Construction & Engineering					1,729,750


		Containers & Packaging – 0.1%

	750	Sealed Air Corporation, 144A	3.000%	6/30/33	BBB		736,875


		Diversified Financial Services – 0.1%

	350	Leucadia National Corporation, Convertible Bonds	3.750%	4/15/14	BB-		731,063


		Diversified Telecommunication Services – 0.1%

	1,400	Qwest Communications International Inc., Convertible Bond	3.500%	11/15/25	B+		1,445,500


		Electric Utilities – 0.1%

	700	Centerpoint Energy Inc., Convertible Bond	3.750%	5/15/23	BBB-		888,125
	400	Covanta Holding Corporation, Convertible Bonds	1.000%	2/01/27	B1		445,000

	1,100	Total Electric Utilities					1,333,125


		Electrical Equipment – 0.1%

	900	General Cable Corporation, Convertible Bonds	1.000%	10/15/12	B+		892,125


		Electronic Equipment & Instruments – 0.1%

	700	Anixter International Inc., Convertible Bond	0.000%	7/07/33	BB-		693,000
	500	Itron Inc.	2.500%	8/01/26	B-		781,250
	100	Tech Data Corporation, Convertible Bonds	2.750%	12/15/26	BBB-		94,250
	700	Vishay Intertechnology Inc.	3.625%	8/01/23	B+		700,000

	2,000	Total Electronic Equipment & Instruments					2,268,500


		Energy Equipment & Services – 1.5%

	300	Cooper Cameron Corporation	1.500%	5/15/24	BBB+		731,625
	950	Halliburton Company, Convertible Bond	3.125%	7/15/23	A		2,000,938
	5,600	Nabors Industries Inc., Convertible Bond Series 144A	0.940%	5/15/11	BBB+		5,754,000
	2,350	Nabors Industries Inc., Convertible Bond Series 144A	0.940%	5/15/11	BBB+		1,130,250
	6,900	Nabors Industries Inc.	0.000%	6/15/23	BBB+		7,296,750
	400	Pride International Inc.	3.250%	5/01/33	BB+		547,000
	750	Schlumberger Limited	2.125%	6/01/23	A+		1,656,563
	400	SESI LLC, Convertible Bond, 144A	1.500%	12/15/26	BB		434,000
	1,000	Transocean Inc., Convertible Bond	1.625%	12/15/37	BBB+		1,098,750
	2,550	Transocean Inc.	1.500%	12/15/37	BBB+		2,808,188
	1,700	Transocean Inc.	1.500%	12/15/37	BBB+		1,874,250

	22,900	Total Energy Equipment & Services					25,332,314


		Food & Staples Retailing – 0.0%

	300	Great Atlantic & Pacific Tea Company Inc.	6.750%	12/15/12	CCC+		295,125


		Food Products – 0.1%

	500	Archer Daniels Midland Company, Convertible Bonds	0.875%	2/15/14	A		583,125
	300	Archer Daniels Midland Company, Convertible Bonds	0.875%	2/15/14	A		349,875
	1,400	General Mills, Inc., Convertible Bonds	2.820%	4/11/37	BBB+		1,402,380

	2,200	Total Food Products					2,335,380


		Health Care Equipment & Supplies – 0.5%

	750	Advanced Medical Optics	3.250%	8/01/26	B-		546,563
	450	American Medical Systems Holdings, Convertible Bond	3.250%	7/01/36	B		441,000
	450	Beckman Coulter Inc., Convertible Bonds, 144A	2.500%	12/15/36	BBB		494,438
	1,600	Hologic Inc.	2.000%	12/15/37	B		1,546,000
	3,600	Medtronic, Inc., Convertible Bond	1.500%	4/15/11	AA-		3,811,500
	250	Medtronic, Inc.	1.500%	4/15/11	AA-		264,688
	1,050	Saint Jude Medical, Inc., Convertible Bonds	1.220%	12/15/08	BBB+		1,069,688

	8,150	Total Health Care Equipment & Supplies					8,173,877


		Health Care Providers & Services – 0.5%

	950	Health Management Associates Inc.	1.500%	8/01/23	Baa3		948,813
	550	Laboratory Corporation of America Holdings	0.000%	9/11/21	BBB-		556,875
	1,000	LifePoint Hospitals, Inc., Convertible Bonds	3.500%	5/15/14	B		845,000
	9,065	Omnicare, Inc.	3.250%	12/15/35	B+		6,050,888
	300	Saint Jude Medical, Inc., Convertible Bonds	1.220%	12/15/08	BBB+		305,625

	11,865	Total Health Care Providers & Services					8,707,201


		Hotels, Restaurants & Leisure – 0.1%

	850	Carnival Corporation	2.000%	4/15/21	A-		936,063
	650	International Game Technology	2.600%	12/15/36	BBB		658,125

	1,500	Total Hotels, Restaurants & Leisure					1,594,188


		Insurance – 0.2%

	3,850	Prudential Financial, Inc., Convertible Bonds	0.539%	12/12/36	A+		3,746,820


		Internet & Catalog Retail – 0.1%

	700	Amazon.com, Inc., Convertible Bonds	4.750%	2/01/09	Ba2		740,250
	250	Priceline.com, Inc., Convertible Bonds	0.500%	9/30/11	B+		761,875
	250	Priceline.com, Inc., Convertible Bonds	0.750%	9/30/13	B+		762,813

	1,200	Total Internet & Catalog Retail					2,264,938


		Internet Software & Services – 0.0%

	500	Yahoo! Inc., Convertible Bond	0.000%	4/01/08	BBB-		500,000


		IT Services – 0.1%

	1,100	Electronic Data Systems Corporation, Convertible Bonds	3.875%	7/15/23	BBB-		1,076,625


		Leisure Equipment & Products – 0.0%

	700	Eastman Kodak Company	3.375%	10/15/33	B		681,625


		Life Sciences Tools & Services – 0.2%

	500	Apogent Technologies, Inc., Convertible Bonds	1.514%	12/15/33	BBB+		977,900
	500	Charles River Laboratories International, Inc.	2.250%	6/15/13	BB+		667,500
	350	Fisher Scientific International, Inc., Convertible Bonds	2.500%	10/01/23	BBB+		850,938

	1,350	Total Life Sciences Tools & Services					2,496,338


		Machinery – 0.1%

	1,100	Danaher Corporation, Convertible Bonds	0.000%	1/22/21	A+		1,245,750
	350	Kaydon Corporation, Convertible Bonds	4.000%	5/23/23	BB-		530,688
	700	Trinity Industries Inc., Convertible Bonds	3.875%	6/01/36	Ba2		596,750

	2,150	Total Machinery					2,373,188


		Media – 0.7%

	300	ELF Special Financing Limited, Convertible Bonds, 144A	6.008%	6/15/09	Ba3		321,720
	800	ELF Special Financing Limited, Convertible Bonds, 144A	3.150%	6/15/09	Ba3		772,000
	2,400	Getty Images, Inc., Convertible Bonds	0.500%	6/09/23	Ba2		2,382,000
	700	Interpublic Group, Inc., Convertible Bonds	4.250%	3/15/23	Ba3		693,000
	400	Lamar Advertising Company, Convertible	2.875%	12/31/10	B1		404,500
	900	Liberty Media Corporation, Senior Debentures, Exchangeable for Class B Viacom Common Stock	3.250%	3/15/31	BB+		612,000
	1,000	Liberty Media Corporation, Senior Debentures, Exchangeable for PCS Common Stock, Series 1	4.000%	11/15/29	BB+		545,000
	1,350	Omnicom Group, Inc.	0.000%	7/31/32	A-		1,360,125
	750	Omnicom Group, Inc.	0.000%	7/01/38	A-		792,188
	1,450	Omnicom Group, Inc.	0.000%	2/07/31	A-		1,442,750
	400	Sinclair Broadcast Group, Inc., Convertible Bonds	3.000%	5/15/27	B		364,000
	1,200	Walt Disney Company, Convertible Senior Notes	2.125%	4/15/23	A		1,287,000

	11,650	Total Media					10,976,283


		Metals & Mining – 0.2%

	3,000	Gold Reserve, Inc., Convertible Bonds	5.500%	6/15/22	N/A		2,685,000
	900	Newmont Mining Corporation	1.625%	7/15/17	BBB+		1,103,625
	50	Newmont Mining Corp., Senior Convertible Note	1.625%	7/15/17	BBB		61,313

	3,950	Total Metals & Mining					3,849,938


		Multiline Retail – 0.0%

	350	Saks, Inc., Convertible Bonds	2.000%	3/15/24	B+		410,375


		Oil, Gas & Consumable Fuels – 0.4%

	1,150	Chesapeake Energy Corporation, 144A	2.750%	11/15/35	BB		1,541,000
	1,400	Chesapeake Energy Corporation, Convertible Bonds	2.500%	5/15/37	BB		1,771,000
	650	Devon Energy Corporation	4.900%	8/15/08	BBB+		1,040,000
	900	Peabody Energy Corp., Convertible Bond	4.750%	12/15/66	Ba3		1,026,000
	1,550	USEC Inc., Convertible Bond	3.000%	10/01/14	CCC		908,688

	5,650	Total Oil, Gas & Consumable Fuels					6,286,688


		Pharmaceuticals – 0.5%

	700	Allergan Inc., Convertible Bond	1.500%	4/01/26	A		775,250
	1,050	Bristol-Myers Squibb Company, Convertible Bond	2.300%	9/15/23	A+		1,046,115
	900	Myland Labs, Inc., Convertible Bonds	1.250%	3/15/12	B+		752,625
	695	Teva Pharmaceutical Finance, Series A	0.500%	2/01/24	BBB+		866,144
	900	Teva Pharmaceutical Finance, Series B	0.250%	2/01/24	BBB+		1,227,375
	1,050	Watson Pharmaceuticals Inc., Convertible Bond	1.750%	3/15/23	BB+		1,015,875
	1,850	Wyeth, Convertible Bond	3.581%	1/15/24	A+		1,864,745

	7,145	Total Pharmaceuticals					7,548,129


		Real Estate – 0.8%

	1,450	Boston Properties Limited Partnership, Convertible Bonds, 144A	2.875%	2/15/37	A-		1,377,500
	650	Brandywine Operating Partnership, Convertible Bonds	3.875%	10/15/26	BBB-		554,125
	750	BRE Properties Inc., Convertible Bond	4.125%	8/15/26	BBB		697,500
	1,050	Developers Diversified Realty Corporation, Convertible Bonds	3.000%	3/15/12	BBB		892,500
	700	Duke Realty Corporation, Series D	3.750%	12/01/11	BBB+		614,250
	450	Health Care REIT, Inc., Convertible Bonds	4.750%	12/01/26	Baa2		491,625
	800	Hospitality Properties Trust, Convertible Bonds	3.800%	3/15/27	BBB		712,000
	700	Host Hotels & Resorts Inc, Convertible Bonds, 144A	2.625%	4/15/27	BB		589,750
	900	Host Marriott LP, Convertible Bonds, 144A	3.250%	4/15/24	Ba1		1,010,250
	2,200	Prologis, Convertible Bonds, 144A	2.250%	4/01/37	BBB+		2,098,250
	1,900	Prologis, Convertible Bonds, 144A	1.875%	11/15/37	BBB+		1,719,500
	900	Vornado Realty Trust, Convertible Bonds	2.850%	4/01/27	BBB		768,374
	900	Weingarten Realty Investment Trust, Convertible Bonds	3.950%	8/01/26	BBB+		862,874

	13,350	Total Real Estate					12,388,498


		Road & Rail – 0.0%

	150	CSX Corporation	0.000%	10/30/21	BBB-		299,063


		Semiconductors & Equipment – 0.6%

	1,400	Advanced Micro Devices, Inc., Convertible Bonds	5.750%	8/15/12	B		993,999
	550	Advanced Micro Devices, Inc., Convertible Bonds	5.750%	8/15/12	B		390,499
	1,400	Advanced Micro Devices, Inc., Convertible Bonds	6.000%	5/01/15	B		887,249
	1,250	Advanced Micro Devices, Inc., Convertible Bonds	6.000%	5/01/15	B		792,187
	2,150	Intel Corporation, Convertible Bond	2.950%	12/15/35	A-		2,120,437
	3,500	Qimonda Finance LLC, Convertible Bond	6.750%	3/22/13	N/A		3,193,749
	1,000	Xilinx Inc., Convertible Bond, 144A	3.125%	3/15/37	BB		907,499
	350	Xilinx Inc., Convertible Bond, 144A	3.125%	3/15/37	BB		317,624

	11,600	Total Semiconductors & Equipment					9,603,243


		Software – 0.1%

	750	Amdocs Limited	0.500%	3/15/24	BBB-		746,249
	600	Computer Associates International Inc., Convertible Bond, Series 144A	1.625%	12/15/09	Ba1		740,249
	700	Red Hat Inc., Convertible Bond	0.500%	1/15/24	BB-		693,874

	2,050	Total Software					2,180,372


		Specialty Retail – 0.1%

	750	TJX Companies, Inc.	0.000%	2/13/21	A-		838,125


		Textiles, Apparel & Luxury Goods – 0.0%

	400	Iconix Brand Group, Inc., Convertible Notes	1.875%	6/30/12	B		364,500


		Thrifts & Mortgage Finance – 0.1%

	2,150	Countrywide Financial Corporation, Convertible Bonds, 144A	0.498%	4/15/37	BBB+		1,913,500


		Wireless Telecommunication Services – 0.1%

	450	American Tower Corporation	3.000%	8/15/12	BB+		887,062
	950	Liberty Media Corporation Convertible Bonds	3.750%	2/15/30	BB+		470,249

	1,400	Total Wireless Telecommunication Services					1,357,311

$	153,016	Total Convertible Bonds (cost $158,306,568)					153,733,233


Principal
Amount (000)		Description (1)	Coupon	Maturity	Ratings (3)	Value


		Corporate Bonds – 9.4% (5.9% of Total Investments)

		Aerospace & Defense – 0.1%

$	1,000	Hexcel Corporation, Term Loan	6.750%	2/01/15	B+	$	972,500


		Auto Components – 0.0%

	800	Keystone Automotive Operations Inc.	9.750%	11/01/13	CCC		452,000


		Capital Markets – 0.0%

	500	LVB Acquisition Merger LLC	10.000%	10/15/17	B-		526,250


		Chemicals – 0.2%

	1,000	Momentive Performance Materials	9.750%	12/01/14	B		902,500
	3,000	Rockwood Specialties Group Inc., Series WI	7.500%	11/15/14	BB-		2,925,000

	4,000	Total Chemicals					3,827,500


		Containers & Packaging – 0.4%

	3,000	Owens-Brockway Glass Containers, Guaranteed Senior Note	8.250%	5/15/13	BB		3,120,000
	3,000	Owens-Illinois Inc.	7.500%	5/15/10	B+		3,082,500

	6,000	Total Containers & Packaging					6,202,500


		Diversified Telecommunication Services – 0.3%

	2,000	Intelsat Subsidiary Holding Company Limited	8.500%	1/15/13	BB-		2,025,000
	1,950	PanAmSat Corporation	9.000%	8/15/14	BB-		1,974,375
	750	Syniverse Technologies Inc., Series B	7.750%	8/15/13	B		710,625

	4,700	Total Diversified Telecommunication Services					4,710,000


		Electric Utilities – 0.1%

	1,000	Sierra Pacific Resources, Series 2006	6.750%	8/15/17	BB-		969,342


		Energy Equipment & Services – 0.2%

	2,500	Pride International Inc.	7.375%	7/15/14	BB+		2,612,500


		Food & Staples Retailing – 0.1%

	2,000	Stater Brothers Holdings Inc.	8.125%	6/15/12	B+		2,015,000


		Food Products – 0.4%

	4,110	Del Monte Corporation	8.625%	12/15/12	B+		4,202,475
	1,096	Dole Foods Company	8.625%	5/01/09	CCC+		959,000
	2,700	Dole Foods Company	7.875%	7/15/13	CCC+		2,038,500

	7,906	Total Food Products					7,199,975


		Health Care Providers & Services – 0.5%

	3,000	Community Health Systems, Inc.	8.875%	7/15/15	B		3,026,250
	1,700	HCA Inc.	9.125%	11/15/14	BB-		1,755,250
	700	HCA Inc.	9.250%	11/15/16	BB-		728,000
	3,000	US Oncology Inc.	10.750%	8/15/14	B3		2,977,500

	8,400	Total Health Care Providers & Services					8,487,000


		Hotels, Restaurants & Leisure – 1.1%

	4,075	Boyd Gaming Corporation	7.750%	12/15/12	BB		3,789,750
	1,650	Jacobs Entertainment Inc.	9.750%	6/15/14	B		1,245,750
	2,000	Landry’s Restaurants Inc.	9.500%	12/15/14	B3		1,960,000
	1,000	Park Place Entertainment	7.875%	3/15/10	B-		942,500
	2,000	Pinnacle Entertainment Inc.	8.250%	3/15/12	B+		1,895,000
	3,000	Pinnacle Entertainment Inc.	8.750%	10/01/13	B+		2,970,000
	1,750	Seminole Hard Rock Entertainment, Inc.	5.500%	3/15/14	BB		1,395,625
	4,000	Universal City Development Partners	11.750%	4/01/10	B+		4,120,000

	19,475	Total Hotels, Restaurants & Leisure					18,318,625


		Independent Power Producers & Energy Traders – 0.1%

	500	Mirant North America LLC	7.375%	12/31/13	B1		507,500
	600	NRG Energy Inc.	7.250%	2/01/14	B1		594,000
	600	NRG Energy Inc.	7.375%	2/01/16	B1		589,500

	1,700	Total Independent Power Producers & Energy Traders					1,691,000


		IT Services – 0.6%

	3,500	First Data Corporation	9.875%	9/24/15	B		2,883,125
	1,950	Global Cash Access LLC	8.750%	3/15/12	B		1,925,625
	4,750	Sungard Data Systems Inc.	9.125%	8/15/13	B+		4,821,250

	10,200	Total IT Services					9,630,000


		Machinery – 0.2%

	3,000	Greenbrier Companies, Inc.	8.375%	5/15/15	B		2,835,000


		Media – 1.9%

	6,900	Allbritton Communications Company, Series B	7.750%	12/15/12	B+		6,796,500
	2,000	AMC Entertainment Inc.	8.000%	3/01/14	B2		1,705,000
	5,000	Cablevision Systems Corporation, Series B	8.125%	8/15/09	BB		5,062,500
	3,000	Cablevision Systems Corporation	7.250%	7/15/08	BB		3,007,500
	2,000	Cablevision Systems Corporation	8.125%	7/15/09	BB		2,025,000
	2,000	Charter Communications Operating LLC, 144A	8.000%	4/30/12	B-		1,845,000
	1,000	Dex Media West LLC	8.500%	8/15/10	BB-		977,500
	2,198	Dex Media West LLC	9.875%	8/15/13	BB-		1,917,755
	4,000	Medianews Group Inc.	6.375%	4/01/14	B3		1,880,000
	4,000	R.H. Donnelley Corporation	8.875%	10/15/17	B		2,520,000
	3,500	Young Broadcasting Inc., Senior Subordinated Note	10.000%	3/01/11	Caa2		2,213,750
	2,000	Young Broadcasting Inc.	8.750%	1/15/14	Caa2		1,190,000

	37,598	Total Media					31,140,505


		Metals & Mining – 0.3%

	5,200	MagIndustries Corporation	11.000%	12/14/12	N/A		4,894,978


		Multi-Utilities – 0.2%

	2,400	Dynegy Holdings, Inc., Term Loan	8.375%	5/01/16	B		2,388,000
	500	Northwestern Corporation	5.875%	11/01/14	A-		504,581

	2,900	Total Multi-Utilities					2,892,581


		Oil, Gas & Consumable Fuels – 0.7%

	600	Chaparral Energy Inc.	8.500%	12/01/15	CCC+		525,000
	4,345	Chesapeake Energy Corporation	7.750%	1/15/15	BB		4,497,075
	1,000	Hilcorp Energy I LP/Hilcorp Finance Company, Series 144A	7.750%	11/01/15	B+		942,500
	2,000	Premcor Refining Group Inc.	7.500%	6/15/15	BBB		2,094,382
	3,000	SemGroup LP, 144A	8.750%	11/15/15	B1		2,760,000
	1,500	Whiting Petroleum Corporation	7.000%	2/01/14	B1		1,492,500

	12,445	Total Oil, Gas & Consumable Fuels					12,311,457


		Paper & Forest Products – 0.4%

	5,000	Georgia-Pacific Corporation	8.125%	5/15/11	B+		4,987,500
	2,000	Georgia-Pacific Corporation	7.700%	6/15/15	B+		1,890,000

	7,000	Total Paper & Forest Products					6,877,500


		Personal Products – 0.1%

	1,600	Prestige Brands Inc.	9.250%	4/15/12	B-		1,552,000


		Real Estate – 0.3%

	3,000	Felcor Lodging Trust Inc., 144A	6.788%	12/01/11	Ba3		2,662,500
	1,000	Trustreet Properties, Inc., (8)	7.500%	4/01/15	AAA		1,090,314
	500	Ventas Realty LP, Series WI	7.125%	6/01/15	BBB-		498,750

	4,500	Total Real Estate					4,251,564


		Semiconductors & Equipment – 0.2%

	2,400	Avago Technologies Finance Pte Limited	10.375%	12/01/13	BB-		2,544,000
	2,000	NXP BV	7.008%	10/15/13	BB-		1,657,500

	4,400	Total Semiconductors & Equipment					4,201,500


		Software – 0.2%

	3,250	Telcorida Technologies, Inc.	6.514%	7/15/12	B		2,486,250


		Specialty Retail – 0.5%

	1,000	Quiksilver Inc.	6.875%	4/15/15	Ba3		810,000
	7,000	Warnaco Inc., Senior Notes	8.875%	6/15/13	BB		7,280,000

	8,000	Total Specialty Retail					8,090,000


		Textiles, Apparel & Luxury Goods – 0.2%

	4,000	Jostens IH Corporation	7.625%	10/01/12	B+		3,910,000


		Wireless Telecommunication Services – 0.1%

	1,500	IPCS, Inc.	5.364%	5/01/13	B1		1,162,500

$	165,574	Total Corporate Bonds (cost $168,251,380)					154,220,027


Principal
Amount (000)/
Shares		Description (1)	Coupon	Maturity	Ratings (3)	Value


		Capital Preferred Securities – 28.3% (17.7% of Total Investments)

		Capital Markets – 2.7%

	1,250	C.A. Preferred Fund Trust II	7.000%	10/30/49	A1	$	1,152,913
	26,850	C.A. Preferred Funding Trust	7.000%	1/30/49	A1		22,917,739
	12,400	Dresdner Funding Trust I, 144A	8.151%	6/30/31	A1		10,988,657
	3,500	First Union Capital Trust II, Series A	7.950%	11/15/29	A1		3,606,694
	6,700	Kleinwort Benson Group PLC	5.377%	12/31/99	N/A		3,115,500
	2,200	MUFG Capital Finance, (2)	4.850%	7/25/56	BBB+		2,463,505

		Total Capital Markets					44,245,008


		Commercial Banks – 15.9%

	2,000	AB Svensk Exportkredit, 144A	6.375%	10/27/49	AA-		1,994,558
	7,600	Abbey National Capital Trust I	8.963%	6/30/50	A+		9,018,183
	41,600	AgFirst Farm Credit Bank	7.300%	12/15/53	A-		39,041,642
	13,070	Bank One Capital III	8.750%	9/01/30	Aa3		14,586,277
	2,600	BankAmerica Institutional Capital Trust, Series B, 144A	7.700%	12/31/26	Aa2		2,604,906
	1,000	BanPonce Trust I, Series A	8.327%	2/01/27	Baa1		981,035
	4,000	Barclays Bank PLC, 144A	8.550%	6/15/49	Aa3		4,185,500
	1,000	Barclays Bank PLC	7.434%	12/15/57	Aa3		905,585
	2,500	BBVA International Prefered S.A., Unipersonal	5.919%	10/18/49	A1		1,976,780
	4,000	BNP Paribas	7.195%	12/25/57	AA-		3,552,648
	1,000	Capital One Capital IV Corporation	6.745%	2/17/37	Baa1		715,794
	2,000	CBG Florida REIT Corporation	7.114%	11/15/49	BB+		1,135,668
	10,100	DBS Capital Funding Corporation, 144A	7.657%	3/15/49	Aa3		10,158,348
	1,900	Den Norske Bank, 144A	7.729%	6/29/49	Aa3		1,915,054
	5,750	First Empire Capital Trust I	8.234%	2/01/27	A3		5,874,229
	4,250	First Midwest Bancorp Inc.	6.950%	12/01/33	Baa1		3,330,980
	750	HBOS Capital Funding LP, Notes	6.850%	3/23/49	A1		525,851
	23,900	HBOS PLC, Series 144A	6.413%	4/01/49	A1		17,162,016
	6,000	HBOS PLC, Series 144A	6.657%	11/21/57	A1		4,297,752
	12,838	HSBC Capital Funding LP, 144A	9.547%	12/31/49	A1		13,805,292
	14,000	HSBC Capital Funding LP, Debt	10.176%	6/30/50	A1		16,808,666
	15,905	KBC Bank Fund Trust III, 144A	9.860%	5/02/50	A1		17,221,059
	4,000	KeyCorp Capital III	7.750%	7/15/29	A3		3,648,768
	5,000	Lloyds TSB Bank PLC, Subordinated Note	6.900%	11/22/49	Aa2		4,782,100
	4,000	Mizuho Financial Group	8.375%	4/27/49	Aa3		3,986,200
	1,000	Nordbanken AB, 144A	8.950%	11/29/49	Aa3		1,056,265
	10,000	North Fork Capital Trust II	8.000%	12/15/27	Baa1		8,649,590
	6,000	Northgroup Preferred Capital Corporation, 144A	6.378%	10/15/57	A1		4,475,676
	8,000	PNC Preferred Funding Trust III, (9)	8.700%	3/15/58	A-		7,720,000
	2,000	Reliance Capital Trust I, Series B	8.170%	5/01/28	N/R		1,722,320
	6,200	Royal Bank of Scotland Group PLC	9.118%	3/31/49	Aa3		6,257,449
	3,500	Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A	7.160%	7/25/49	Baa2		2,528,750
	3,100	Standard Chartered PLC, 144A	6.409%	1/30/57	BBB+		2,550,894
	11,700	Standard Chartered PLC, 144A	7.014%	1/30/58	BBB+		10,214,650
	14,700	Swedbank ForeningsSparbanken AB, 144A	9.000%	9/17/50	Aa3		14,802,959
	15,290	Unicredito Italiano Capital Trust, 144A	9.200%	4/05/51	A1		15,073,463
	600	Union Bank of Norway	7.068%	11/19/49	A2		947,676

		Total Commercial Banks					260,214,583


		Diversified Financial Services – 2.6%

	4,800	Fulton Capital Trust I	6.290%	2/01/36	A3		3,475,680
	18,600	JPMorgan Chase Capital Trust XVIII	6.950%	8/17/36	Aa3		17,182,420
	23,600	Old Mutual Capital Funding, Notes	8.000%	6/22/53	Baa2		22,302,000

		Total Diversified Financial Services					42,960,100


		Diversified Telecommunication Services – 1.1%

	19	Centaur Funding Corporation, Series B, 144A	9.080%	4/21/20	BBB		18,036,563


		Insurance – 4.5%

	2,000	Allstate Corporation	6.500%	5/15/57	A2		1,651,836
	4,000	AMBAC Financial Group Inc.	6.150%	2/15/87	A+		1,524,600
	10,000	American General Capital II	8.500%	7/01/30	Aa3		11,203,500
	4,980	American General Institutional Capital, 144A	8.125%	3/15/46	Aa3		5,233,801
	9,800	AXA S.A., 144A	6.463%	12/14/49	BBB+		7,879,768
	750	Great West Life and Annuity Insurance Company	7.153%	5/16/46	A-		679,082
	3,500	Liberty Mutual Group	7.800%	3/15/37	Baa3		2,958,256
	1,600	MetLife Inc.	6.400%	12/15/66	BBB+		1,275,056
	1,550	Nationwide Financial Services Capital Trust	7.899%	3/01/37	Baa1		1,433,311
	4,000	Nationwide Financial Services Inc.	6.750%	5/15/67	Baa1		3,338,300
	7,600	Oil Insurance Limited, 144A	7.558%	12/30/49	Baa1		6,647,332
	3,800	Progressive Corporation	6.700%	6/15/37	A2		3,389,938
	1,000	Prudential PLC	6.500%	6/29/49	A		840,171
	9,000	QBE Capital Funding Trust II, 144A	6.797%	6/01/49	BBB		8,166,897
	22,200	XL Capital, Limited	6.500%	10/15/57	BBB		16,665,940

		Total Insurance					72,887,788


		Real Estate Investment Trust – 0.0%

	4	PS Business Parks Inc., Series M	7.200%	3/30/55	BBB-		83,600


		Road & Rail – 0.4%

	7,600	Burlington Northern Santa Fe Funding Trust I	6.613%	12/15/55	BBB		6,921,236


		Thrifts & Mortgage Finance – 1.1%

	1,000	Caisse Nationale Des Caisses d’Epargne et de Prevoyance	6.750%	1/27/49	A+		976,640
	25,600	Washington Mutual Preferred Funding Cayman, Series A-1, 144A	7.250%	3/15/49	BB+		16,271,025
	1,000	Washington Mutual Preferred Funding Trust II	6.665%	3/15/57	BB+		540,749

		Total Thrifts & Mortgage Finance					17,788,414

		Total Capital Preferred Securities (cost $551,717,284)					463,137,292


Shares		Description (1)	Value


		Investment Companies – 2.4% (1.5% of Total Investments)

	99,306	Blackrock Preferred and Corporate Income Strategies Fund	$	1,475,687
	751,883	Blackrock Preferred Income Strategies Fund		11,421,103
	88,292	Blackrock Preferred Opportunity Trust		1,454,169
	753,964	Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.		11,188,826
	109,139	Flaherty and Crumrine/Claymore Total Return Fund Inc.		1,712,391
	84,688	John Hancock Preferred Income Fund		1,595,522
	63,914	John Hancock Preferred Income Fund II		1,214,366
	540,883	John Hancock Preferred Income Fund III		9,314,005

		Total Investment Companies (cost $50,705,066)		39,376,069

Shares

Description (1)

Value

Warrants – 0.0% (0.0% of Total Investments)

910,000

MagIndustries Corporation

755,785

Total Warrants (cost $396,211)

755,785

Principal

Amount (000)

Description (1)

Coupon

Maturity

Value

Short-Term Investments – 8.0% (5.0% of Total Investments)

67,361

Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/08, repurchase price $67,363,292, collateralized by $30,810,000 U.S. Treasury Bonds, 8.750%, due 8/15/20, value $45,444,750 and $17,345,000 U.S. Treasury Bonds, 6.875%, due 8/15/25, value $23,263,981

1.100%

4/01/08

67,361,234

64,949

Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/08, repurchase price $64,950,972, collateralized by $52,530,000 U.S. Treasury Bonds, 6.125%, due 8/15/29, value $66,253,463

1.100%

4/01/08

64,948,987

132,310

Total Short-Term Investments (cost $132,310,221)

132,310,221

Total Investments (cost $2,896,542,679) – 160.1%

2,623,061,067


Shares			Description (1)	Value


			Common Stocks Sold Short – (0.6)%

			Beverages – 0.1%

	(20,900	)	Hansen Natural Corporation, (2)	$	(737,770	)


			Computers & Peripherals – (0.0)%

	(4,500	)	Apple, Inc., (2)		(645,750	)


			Health Care Equipment & Supplies – 0.1%

	(10,700	)	Alcon Inc.		(1,522,075	)
	(9,000	)	Chattem Inc., (2)		(597,060	)

			Total Health Care Equipment & Supplies		(2,119,135	)


			Hotels, Restaurants & Leisure – (0.0)%

	(17,600	)	Tim Hortons Inc.		(599,280	)


			Household Products – (0.1)%

	(10,000	)	Procter & Gamble Company		(700,700	)


			Internet Software & Services – (0.1)%

	(31,300	)	Bankrate Inc., (2)		(1,561,557	)


			Pharmaceuticals – (0.1)%

	(26,600	)	Allergan, Inc.		(1,499,974	)


			Specialty Retail – (0.1)%

	(11,600	)	AutoZone, Inc., (2)		(1,320,428	)
	(20,100	)	Urban Outfitters, Inc., (2)		(630,135	)

			Total Specialty Retail		(1,950,563	)

			Total Common Stocks Sold Short (proceeds $10,935,462)		(9,814,729	)


				Notional			Expiration	Strike
Contracts			Type	Amount (10)			Date	Price		Value


			Call Options Written – (0.6)%

	(3,777	)	Allied Waste Industries, Inc.	$	(3,777,000	)	1/17/09	$	10.0	$	(670,417	)
	(664	)	Allied Waste Industries, Inc.		(830,000	)	1/17/09		12.5		(43,160	)
	(388	)	Amgen, Inc.		(1,940,000	)	4/19/08		50.0		(1,940	)
	(603	)	Amgen, Inc.		(3,316,500	)	1/17/09		55.0		(81,405	)
	(1,386	)	AngloGold Ashanti Limited		(5,544,000	)	1/17/09		40.0		(450,450	)
	(750	)	AstraZeneca Group		(3,375,000	)	7/19/08		45.0		(52,500	)
	(1,048	)	AstraZeneca Group		(5,240,000	)	1/17/09		50.0		(75,980	)
	(3,280	)	BJ Services Company		(7,380,000	)	1/17/09		22.5		(2,476,400	)
	(1,231	)	BP Amoco, PLC		(8,617,000	)	1/17/09		70.0		(301,595	)
	(900	)	eBay Inc.		(2,700,000	)	1/17/09		30.0		(405,000	)
	(1,400	)	Electronic Data Systems Corporation		(2,800,000	)	1/17/09		20.0		(126,000	)
	(1,430	)	Gold Fields Limited		(2,502,500	)	7/19/08		17.5		(85,800	)
	(433	)	KT Corporation		(1,082,500	)	7/19/08		25.0		(69,280	)
	(1,223	)	LM Ericsson Telefonaktiebolaget		(2,751,750	)	1/17/09		22.5		(204,853	)
	(650	)	Microsoft Corporation		(1,950,000	)	1/17/09		30.0		(161,850	)
	(2,351	)	Newmont Mining Corporation		(11,755,000	)	1/17/09		50.0		(1,151,990	)
	(865	)	Nexen Inc.		(2,595,000	)	1/17/09		30.0		(358,975	)
	(5,230	)	Nippon Telegraph & Telephone Corporation		(13,075,000	)	6/21/08		25.0		(91,525	)
	(1,990	)	NovaGold Resources, Inc.		(2,985,000	)	6/21/08		15.0		(29,850	)
	(833	)	Royal Dutch Shell PLC		(5,831,000	)	7/19/08		70.0		(245,735	)
	(601	)	Sanofi-Aventis		(2,554,250	)	9/20/08		42.5		(63,105	)
	(1,888	)	Smithfield Foods, Inc.		(5,664,000	)	1/17/09		30.0		(354,000	)
	(2,000	)	Statoil ASA		(5,000,000	)	7/19/08		25.0		(1,060,000	)
	(670	)	Tech Data Corporation		(2,680,000	)	1/17/09		40.0		(72,025	)
	(5,094	)	Tyson Foods, Inc.		(7,641,000	)	1/17/09		15.0		(1,439,055	)
	(540	)	UBS AG		(1,620,000	)	1/17/09		30.0		(291,600	)
	(580	)	UBS AG		(2,320,000	)	1/17/09		40.0		(104,400	)

	(41,805	)	Total Call Options Written (premiums received ($12,179,904))		(117,526,500	)					(10,468,890	)

			Other Assets Less Liabilities – (0.0)%								143,019

			FundPreferred Shares, at Liquidation Value – (58.9)% (12)								(965,000,000	)

			Net Assets Applicable to Common Shares – 100%							$	1,637,920,467

Interest Rate Swaps outstanding at March 31, 2008:

Fund

Fixed Rate

Unrealized

Notional

Pay/Receive

Floating Rate

Fixed Rate

Payment

Termination

Appreciation

Counterparty

Amount

Floating Rate

Index

(Annualized)

Frequency

Date

(Depreciation)

JPMorgan Chase

97,000,000

Receive

1-Month USD-LIBOR

3.360%

Monthly

1/23/09

(754,657

)

USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)


(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.

(2)		Non-income producing.

(3)		Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.

(4)		Senior Loans 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 may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.

(5)		Senior Loans 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.

(6)		Position or portion of position represents an unfunded Senior Loan commitment outstanding at March 31, 2008.

(7)		Negative value represents unrealized depreciation on unfunded Senior Loan commitment outstanding at March 31, 2008.

(8)		Portion of investment, with an aggregate market value of $763,220, has been pledged to collateralize the net payment obligations under interest rate swap contracts.

(9)		Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees.

(10)		For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100.

(11)		Investment has been pledged as collateral to cover call options written.

(12)		FundPreferred Shares, at Liquidation Value as a percentage of total investments is (36.8)%.

N/A		Not applicable.

N/R		Not rated.

WI/DD		Purchased on a when-issued or delayed delivery basis.

144A		Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.

ADR		American Depositary Receipt.

CORTS		Corporate Backed Trust Securities.

PPLUS		PreferredPlus Trust.

SATURNS		Structured Asset Trust Unit Repackaging.

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.

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 -

Quoted prices in active markets for identical securities.

Level 2 -

Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 -

Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund’s fair value measurements as of March 31, 2008:


		Level 1			Level 2			Level 3		Total

Investments	$	1,422,344,121		$	1,192,996,946		$	7,720,000	$	2,623,061,067
Derivatives*		-			(754,657	)		-		(754,657	)
Securities sold short		(9,814,729	)		-			-		(9,814,729	)
Call options written		(10,468,890	)		-			-		(10,468,890	)

Total	$	1,402,060,502		$	1,192,242,289		$	7,720,000	$	2,602,022,791

* Represents net unrealized appreciation (depreciation).

The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:


	Level 3
	Investments

Balance as of December 31, 2007	$	5,625,849
Gains (losses):
Net realized gains (losses)		-
Net change in unrealized appreciation (depreciation)		(271,870	)
Net purchases at cost (sales at proceeds)		8,000,000
Net discounts (premiums)		16,784
Net transfers in to (out of) at end of period fair value		(5,650,763	)

Balance as of March 31, 2008	$	7,720,000

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 the recognition of premium amortization, timing differences in the recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At March 31, 2008, the cost of investments was $2,901,107,844.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2008, were as follows:




Gross unrealized:
Appreciation	$	54,550,964
Depreciation		(332,597,741	)



Net unrealized appreciation (depreciation) of investments	$	(278,046,777	)

Item 2. Controls and Procedures.

	a.		The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

	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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

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) Nuveen Multi-Strategy Income and Growth Fund 2



By (Signature and Title)*	/s/ Kevin J. McCarthy
	Kevin J. McCarthy
	Vice President and Secretary

Date May 30, 2008

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



By (Signature and Title)*	/s/ Gifford R. Zimmerman
	Gifford R. Zimmerman
	Chief Administrative Officer (principal executive officer)

Date May 30, 2008



By (Signature and Title)*	/s/ Stephen D. Foy
	Stephen D. Foy
	Vice President and Controller (principal financial officer)

Date May 30, 2008


*		Print the name and title of each signing officer under his or her signature.

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