UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21413
Name of Fund: Floating Rate Income Strategies Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, Floating Rate Income Strategies Fund, Inc., 800 Scudders Mill
Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 08/31/05
Date of reporting period: 03/01/05 - 05/31/05
Item 1 - Schedule of Investments
Floating Rate Income Strategies Fund, Inc.
Schedule of Investments as of May 31, 2005
Face
Industry* Amount Floating Rate Loan Interests** Value
Aerospace & Defense - 2.2% $ 1,951,854 K&F Industries, Inc. Term Loan, due 11/18/2013 $ 1,973,406
2,101,911 MRO Acquisitions Corp. First Lien Term Loan,
due 8/27/2010 2,142,635
Vought Aircraft Industries, Inc:
2,933,082 Term Loan, due 12/22/2011 2,977,079
560,000 Tranche B L/C Deposit, due 12/22/2010 568,050
-------------
7,661,170
Automotive - 3.0% 2,992,500 Affinia Group Tranche B Term Loan, due 11/30/2011 2,955,094
1,660,870 Keystone Automotive Operations, Inc. Term Loan,
due 10/30/2009 1,671,943
1,700,078 NFIL Holdings Corp. Term Loan B, due 2/27/2010 1,719,204
Tenneco Automotive, Inc.:
2,896,483 Term Loan B, due 12/12/2010 2,910,966
1,272,374 Tranche B-1 Credit Linked, due 12/12/2010 1,278,736
-------------
10,535,943
Broadcasting - 1.4% 2,992,500 Emmis Operating Company Term Loan B, due 11/10/2011 3,010,787
1,995,000 Gray Television, Inc. Term Incremental, due 6/30/2011 2,018,691
-------------
5,029,478
Cable - U.S. - 18.0% 8,000,000 Century Cable Holdings LLC Discretionary Term Loan,
due 12/31/2009 7,914,000
21,090,625 Charter Communications Operating, LLC Tranche B
Term Loan, due 4/07/2011 20,982,768
3,000,000 DIRECTV Holdings, Inc. Tranche B Term Loan,
due 4/13/2013 3,008,439
Inmarsat Facility Term:
2,292,136 Loan B, due 1/08/2011 2,303,434
2,297,523 Loan C, due 1/08/2012 2,318,447
4,937,500 Insight Midwest Holdings, LLC Term Loan B,
due 12/31/2009 4,996,444
2,992,500 Intelsat Ltd. Term Loan, due 7/28/2011 3,012,699
2,387,500 Mediacom Broadband Group Tranche A Term Loan,
due 3/31/2010 2,368,102
3,192,000 Mediacom Communications, LLC Tranche B Term Loan,
due 3/31/2013 3,211,950
6,947,289 PanAmSat Corp. Tranche B-1 Term Loan,
due 8/20/2011 7,035,131
5,000,000 SatBirds Capital Participations Second Lien Term Loan,
due 9/30/2013 5,986,337
-------------
63,137,751
Chemicals - 8.1% 1,980,000 Hercules Inc. Term Loan B, due 10/08/2010 2,002,895
6,090,310 Huntsman International, LLC Term Loan B,
due 12/31/2010 6,194,351
Invista B.V. New Tranche:
2,355,088 B-1 Term Loan, due 4/29/2011 2,394,096
1,021,794 B-2 Term Loan, due 4/29/2011 1,038,718
735,203 Kraton Polymers Term Loan, due 12/16/2010 744,393
992,500 Lyondell-Citgo Refining Term Loan, due 5/21/2007 1,008,008
6,658,852 Nalco Co. Tranche B Term Loan, due 11/04/2010 6,734,357
1,148,293 Pinnacle Polymers (Epsilon Products) Term Loan,
due 12/15/2006 1,162,453
2,000,000 Rockwood Specialties Group, Inc. Tranche D Term Loan,
due 12/10/2012 2,011,608
4,750,000 Wellman, Inc. Second Lien Term Loan,
due 2/10/2010 4,922,187
-------------
28,213,066
Consumer - Durables - 2.0% Simmons Co.:
4,500,000 Term Loan, due 6/19/2012 4,519,687
2,425,586 Tranche B Term Loan, due 12/19/2011 2,369,495
-------------
6,889,182
Consumer - 1,795,103 American Achievement Corp. Term Loan B,
Non-Durables - 1.2% due 3/22/2011 1,810,810
1,500,000 Burt's Bees, Inc. Term Loan, due 3/29/2011 1,515,938
969,000 Camelbak Products, LLC First Lien Term Loan,
due 8/04/2011 972,028
-------------
4,298,776
Diversified Media - 6.5% 3,580,968 Dex Media West, Inc. Term Loan B, due 3/09/2010 3,612,549
1,200,000 Freedom Communications, Inc. Tranche B Term Loan,
due 5/01/2013 1,202,250
4,730,000 Liberty Group Operating Term Loan B, due 2/28/2012 4,753,650
10,000,000 Metro-Goldwyn-Mayer Studios, Inc. Term Loan B,
due 4/30/2011 10,021,880
1,168,692 Primedia, Inc. Term Loan B, due 6/30/2009 1,170,153
2,092,349 RH Donnelley Tranche D Term Loan, due 8/30/2011 2,109,468
-------------
22,869,950
Energy - Other - 1.1% 2,750,000 Dresser, Inc. Term Loan Unsecured, due 2/25/2010 2,801,562
978,542 Pride Offshore, Inc. Term Loan, due 7/07/2011 992,405
-------------
3,793,967
Food & Drug - 0.2% 755,740 Alimentation Couche-Tard, Inc. US Term Loan,
due 12/17/2010 761,172
Food & Tobacco - 5.0% 3,380,298 Constellation Brands Term Loan B, due 11/30/2011 3,396,967
1,741,250 Doane Pet Care Enterprises, Inc. Term Loan,
due 11/05/2009 1,776,075
5,637,874 Dr. Pepper/Seven Up Bottling Group, Inc. Tranche B
Term Loan, due 12/19/2010 5,712,751
2,953,518 Meow Mix, Inc. First Lien Term Loan, due 10/10/2009 2,962,747
2,738,255 Michael Foods, Inc. Term Loan, due 11/21/2010 2,775,906
880,833 Pierre Foods, Inc. Term Loan B, due 6/30/2010 889,091
-------------
17,513,537
Gaming - 3.6% 1,985,000 Boyd Gaming Corp. Term Loan, due 6/30/2011 2,001,541
1,018,029 Global Cash Access LLC Term Loan B, due 3/10/2010 1,032,982
1,980,037 Green Valley Ranch Gaming, LLC Term Loan,
due 12/22/2010 1,994,888
990,000 Isle of Capri Black Hawk LLC Term Loan C,
due 12/31/2007 1,002,685
1,800,000 Pinnacle Entertainment, Inc. New Term Loan B,
due 8/27/2010 1,828,125
1,500,000 Trump Entertainment Resorts Holdings, LP Term Loan
B-1, due 5/01/2012 1,519,687
3,100,000 Venetian Casino Resort, LLC Term Loan B Funded,
due 6/15/2011 3,123,250
-------------
12,503,158
Health Care - 5.3% 2,786,000 Community Health Systems, Inc. Term Loan,
due 8/19/2011 2,815,022
HealthSouth Corp.:
1,968,750 Term Loan, due 3/08/2010 1,972,441
531,250 Tranche B Term Loan, due 3/08/2010 532,246
4,950,000 LifePoint Hospitals, Inc. Term Loan B, due 4/15/2012 4,960,053
3,750,000 Orthofix International NV Term Loan B,
due 12/15/2008 3,789,844
681,555 Rotech Healthcare, Inc. Term Loan B, due 3/31/2008 686,880
3,648,069 Triad Hospitals Holdings, Inc. Term Loan B,
due 9/30/2008 3,685,852
-------------
18,442,338
Housing - 3.9% 2,095,291 General Growth Properties, Inc. Tranche B Term Loan,
due 11/12/2008 2,110,897
3,112,541 Headwaters, Inc. Term Loan B-1, due 4/30/2011 3,156,636
1,078,149 Juno Lighting, Inc. First Lien Term Loan, due 11/21/2010 1,091,625
2,481,250 Nortek, Inc., Term Loan, due 8/27/2011 2,494,897
4,615,000 PGT Industries, Inc. First Lien Term Loan,
due 1/31/2009 4,661,150
-------------
13,515,205
Information Technology - 2.6% 3,700,000 Fidelity National Information Solutions, Inc. Term
Loan B, due 3/09/2013 3,678,725
2,000,000 Telcordia Technologies Inc. Term Loan,
due 9/15/2012 1,963,126
3,368,750 VUTEK Inc. Term Loan, due 6/25/2010 3,377,172
-------------
9,019,023
Leisure - 1.9% 4,458,609 24 Hour Fitness Worldwide Term Loan B,
due 7/01/2009 4,472,542
2,000,000 Wyndham International, Inc. First Lien Term Loan,
due 5/10/2011 2,011,750
-------------
6,484,292
Manufacturing - 4.6% 2,222,222 Communications & Power Industries, Inc. Term Loan,
due 7/23/2010 2,247,222
1,875,000 High Voltage Engineering Corp. Term Loan A,
due 7/31/2006 1,865,625
2,000,000 Invensys International Holdings Ltd. Second Lien
Term Loan, due 12/04/2009 2,022,500
568,784 Itron, Inc. Tranche C Term Loan, due 12/17/2010 571,628
3,066,771 Mueller Group, Inc. Initial Term Loan, due 4/23/2011 3,103,189
Sensus Metering Systems Inc. Term Loan:
5,525,000 B-1, due 12/17/2010 5,580,250
828,750 B-2, due 12/19/2010 837,037
-------------
16,227,451
Packaging - 4.3% 6,066,778 Berry Plastics Corp. Term Loan, due 7/22/2010 6,112,279
2,992,500 Graham Packaging Co. LP Term Loan B,
due 10/07/2011 3,023,173
1,990,000 Intertape Polymer US Inc. Term Loan B, due 7/28/2011 2,022,337
Owens-Illinois Group Inc.:
3,240,129 French Tranche C-1 Term Loan, due 4/01/2008 3,288,730
525,619 Term Loan B-1, due 4/01/2008 534,489
-------------
14,981,008
Paper - 2.2% 1,800,000 Boise Cascade Holdings, LLC Tranche B Term Loan,
due 10/28/2011 1,819,499
SP Newsprint Co.:
966,667 Tranche B Line of Credit, due 1/09/2010 974,521
474,583 Tranche B Term Loan, due 1/09/2010 478,439
1,006,071 Tranche B-1 Credit Linked Deposit, due 1/09/2010 1,014,245
493,929 Tranche B-1 Term Loan, due 1/09/2010 497,942
Smurfit Stone Container Corp.:
2,288,382 Tranche B, due 11/01/2011 2,316,630
704,118 Tranche C, due 11/01/2011 712,809
-------------
7,814,085
Retail - 1.0% 1,750,000 American Reprographics Co., LLC Second Lien Term Loan,
due 12/18/2009 1,841,875
1,700,082 General Nutrition Centers, Inc. Tranche B Term Loan,
due 12/05/2009 1,720,624
-------------
3,562,499
Service - 2.8% Baker Tanks, Inc.:
346,786 Tl Ci Pr, due 1/30/2011 350,687
2,089,109 Term Loan, due 1/30/2011 2,112,612
2,878,250 Buhrmann US, Inc. Term C-1 Facility, due 12/23/2010 2,915,129
2,487,966 Coinstar, Inc. Term, due 7/07/2011 2,525,286
United Rentals, Inc.:
1,650,000 Term Loan, due 2/14/2011 1,673,461
333,333 Tranche B, Credit-Linked Deposit, due 2/14/2011 338,229
-------------
9,915,404
Telecommunications - 2.1% 2,178,000 Consolidated Communications, Inc. Term Loan C,
due 10/14/2011 2,192,974
WilTel Communications, LLC:
3,581,053 First Lien Term Loan, due 6/30/2011 3,518,384
1,800,000 Second Lien Term Loan, due 12/31/2010 1,707,750
-------------
7,419,108
Utility - 11.5% 1,571,429 AES Corp. Term Loan, due 4/30/2008 1,584,589
4,927,274 Calpine Corp. Second Lien Term Loan, due 7/16/2007 3,759,510
Calpine Generating Co. LLC:
1,500,000 First Priority Term Loan, due 4/01/2009 1,509,643
2,500,000 Second Priority Term Loan, due 3/11/2010 2,371,875
4,700,000 Cogentrix Delaware Holdings, Inc. Term Loan,
due 4/15/2012 4,722,912
2,779,000 Dynegy Holdings, Inc. Term Loan, due 5/27/2010 2,793,242
El Paso Corp.:
1,425,000 Deposit Account, due 11/23/2009 1,430,442
2,356,000 Term Loan, due 11/23/2009 2,370,398
5,000,000 KGen LLC Tranche A Term Loan, due 8/05/2011 4,900,000
452,226 Midwest Generation LLC Term Loan C, due 4/27/2011 458,048
NRG Energy:
700,000 Credit Linked Deposit, due 12/24/2007 705,687
897,750 Term Loan, due 12/24/2011 905,044
2,475,000 Quanta Services, Inc. Credit Linked Deposit,
due 6/19/2008 2,502,844
3,092,250 Reliant Energy, Inc. Term Loan, due 4/30/2010 3,103,571
Texas Genco LLC:
2,046,154 Delayed Draw Term Loan, due 12/14/2011 2,064,698
4,941,461 Initial Term Loan, due 12/14/2011 4,986,246
-------------
40,168,749
Wireless Communications - 2.3% 2,320,625 Centennial Cellular Operating Co. Term Loan,
due 2/09/2011 2,340,930
5,758,987 SBA Senior Finance, Inc. Tranche C Term Loan,
due 10/31/2008 5,809,379
-------------
8,150,309
Total Floating Rate Loan Interests
(Cost - $338,489,232) - 96.8% 338,906,621
Corporate Bonds
Airlines - 0.6% Delta Air Lines, Inc.:
1,700,000 7.90% due 12/15/2009 637,500
3,550,000 2.875% due 2/18/2024 (b)(e) 1,317,938
-------------
1,955,438
Automotive - 0.3% 250,000 Delco Remy International, Inc., 7.141%
due 4/15/2009 (c) 248,750
700,000 Tenneco Automotive, Inc., 8.625% due 11/15/2014 675,500
-------------
924,250
Broadcasting - 2.5% 4,000,000 Granite Broadcasting Corp., 9.75% due 12/01/2010 3,660,000
4,750,000 Paxson Communications Corp., 5.891%
due 1/15/2010 (b)(c) 4,750,000
250,000 XM Satellite Radio, Inc., 8.71% due 5/01/2009 (c) 251,250
-------------
8,661,250
Cable - International - 1.0% NTL Cable Plc:
3,000,000 8.141% due 10/15/2012 (c) 3,060,000
375,000 8.75% due 4/15/2014 384,375
-------------
3,444,375
Cable - U.S. - 1.8% 850,000 Inmarsat Finance Plc, 7.625% due 6/30/2012 884,000
Intelsat Bermuda Ltd. (b):
750,000 7.805% due 1/15/2012 (c) 761,250
500,000 8.25% due 1/15/2013 508,750
350,000 Mediacom Broadband LLC, 11% due 7/15/2013 378,875
250,000 New Skies Satellites, BV, 8.539% due 11/01/2011 (b)(c) 252,500
3,000,000 Rainbow National Services LLC, 10.375%
due 9/01/2014 (b) 3,420,000
-------------
6,205,375
Chemicals - 2.8% 1,950,000 Crompton Corp., 9.164% due 8/01/2010 (c) 2,179,125
2,186,000 GEO Specialty Chemicals, Inc., 11.593%
due 12/31/2009 (b)(e) 2,295,300
5,000,000 PolyOne Corp., 10.625% due 5/15/2010 5,412,500
-------------
9,886,925
Consumer - 250,000 Elizabeth Arden, Inc., 7.75% due 1/15/2014 258,125
Non-Durables - 0.8% 2,000,000 Playtex Products, Inc., 8% due 3/01/2011 2,140,000
350,000 Samsonite Corp., 8.875% due 6/01/2011 367,500
-------------
2,765,625
Diversified Media - 0.1% 250,000 CanWest Media, Inc., 8% due 9/15/2012 (b) 260,000
250,000 Universal City Florida Holding Co. I, 7.96%
due 5/01/2010 (c) 260,000
-------------
520,000
Energy - Exploration & Production - 0.1% 250,000 Belden & Blake Corp., 8.75% due 7/15/2012 226,250
Energy - Other - 0.1% 250,000 Aventine Renewable Energy Holdings, Inc., 9.01%
due 12/15/2011 (b)(c) 227,500
Food & Drug - 0.1% 275,000 Duane Read Inc., 7.51% due 12/15/2010 (b)(c) 264,000
Food & Tobacco - 1.3% 250,000 AmeriQual Group LLC, 9% due 4/01/2012 (b) 251,250
3,000,000 Smithfield Foods, Inc., 7% due 8/01/2011 3,142,500
1,050,000 The Wornick Co., 10.875% due 7/15/2011 1,050,000
-------------
4,443,750
Gaming - 3.0% 5,000,000 Majestic Star Casino LLC, 9.50% due 10/15/2010 5,187,500
250,000 Mohegan Tribal Gaming Authority, 7.125%
due 8/15/2014 255,313
325,000 River Rock Entertainment Authority, 9.75%
due 11/01/2011 356,281
Station Casinos, Inc.:
4,000,000 6% due 4/01/2012 4,010,000
775,000 6.50% due 2/01/2014 784,688
-------------
10,593,782
Health Care - 0.2% 575,000 U.S. Oncology, Inc., 9% due 8/15/2012 615,250
Housing - 0.1% 450,000 Nortek, Inc. 8.50% due 9/01/2014 402,750
Hybrid - 1.4% 4,885,000 Dow Jones CDX.NA.HY.3 Trust 3 December 2009,
8% due 12/29/2009 (b) 4,903,319
Information Technology - 1.9% 2,050,000 Freescale Semiconductor, Inc., 5.891% due 7/15/2009 (c) 2,121,750
4,625,000 MagnaChip SemiConductor SA, 6.26%
due 12/15/2011 (b)(c) 4,301,250
300,000 Telcordia Technologies Inc., 10% due 3/15/2013 (b) 262,500
-------------
6,685,500
Leisure - 1.8% 5,400,000 Felcor Lodging LP, 7.78% due 6/01/2011 (c) 5,548,500
1,000,000 True Temper Sports, Inc., 8.375% due 9/15/2011 905,000
-------------
6,453,500
Manufacturing - 1.6% 250,000 Altra Industrial Motion, Inc., 9% due 12/01/2011 (b) 240,000
2,500,000 Case New Holland, Inc., 6% due 6/01/2009 (b) 2,375,000
325,000 ERICO International Corp., 8.875% due 3/01/2012 332,234
2,900,000 Invensys Plc, 9.875% due 3/15/2011 (b) 2,733,250
-------------
5,680,484
Metal - Other - 0.2% 700,000 Novelis, Inc., 7.25% due 2/15/2015 (b) 686,000
Packaging - 0.7% 1,550,000 Consolidated Container Co. LLC, 10.75%
due 6/15/2009 (a) 1,209,000
250,000 Constar International, Inc., 6.643%
due 2/15/2012 (b)(c) 236,250
600,000 Tekni-Plex, Inc., 8.75% due 11/15/2013 (b) 516,000
725,000 Wise Metals Group LLC,10.25% due 5/15/2012 598,125
-------------
2,559,375
Paper - 2.1% 2,650,000 Abitibi-Consolidated, Inc., 6.51% due 6/15/2011 (c) 2,570,500
700,000 Ainsworth Lumber Co. Ltd., 6.84% due 10/01/2010 (c) 700,000
250,000 Boise Cascade LLC, 6.016% due 10/15/2012 (b)(c) 250,000
925,000 NewPage Corp., 9.46% due 5/01/2012 (b)(c) 906,500
2,912,000 Western Forest Products, Inc., 15%
due 7/28/2009 (b)(d) 2,983,392
-------------
7,410,392
Retail - 0.4% 1,300,000 Jean Coutu Group, Inc., 8.50% due 8/01/2014 1,264,250
Service - 2.0% 3,375,000 Allied Waste North America, Inc. Series B, 7.375%
due 4/15/2004 3,105,000
2,000,000 Sunstate Equipment Co. LLC,10.50% due 4/01/2013 (b) 2,010,000
2,000,000 United Rentals North America, Inc., 7.75%
due 11/15/2013 1,980,000
-------------
7,095,000
Steel - 2.4% 3,000,000 CSN Islands VIII Corp., 9.75% due 12/16/2013 (b) 3,195,000
5,000,000 Ispat Inland ULC, 9.85% due 4/01/2010 (c) 5,325,000
-------------
8,520,000
Telecommunications - 4.3% 6,000,000 Cincinnati Bell, Inc., 8.375% due 1/15/2014 5,940,000
3,700,000 Qwest Communications International Inc., 6.768%
due 2/15/2009 (b)(c) 3,653,750
2,000,000 Terremark Worldwide Inc, 9% due 6/15/2009 (e) 1,860,000
3,500,000 Time Warner Telecom Holdings, Inc., 7.268%
due 2/15/2011 (c) 3,552,500
-------------
15,006,250
Transportation - 1.5% 5,000,000 Grupo Transportacion Ferroviaria Mexicana SA DE
C.V., 9.375% due 5/01/2012 (b) 5,175,000
Utility - 2.2% 2,000,000 Aquila, Inc., 7.625% due 11/15/2009 2,010,000
3,000,000 Calpine Canada Energy Finance Ulc, 8.50%
due 5/01/2008 1,785,000
3,000,000 Calpine Corp., 9.875% due 12/01/2011 (b) 2,190,000
1,675,000 Reliant Energy, Inc. 6.75% due 12/15/2014 1,595,438
250,000 Sierra Pacific Resources, 8.625% due 3/15/2014 270,625
-------------
7,851,063
Wireless Communications - 1.6% Rogers Wireless Communications, Inc.:
3,250,000 6.135% due 12/15/2010 (c) 3,388,125
1,100,000 7.25% due 12/15/2012 1,177,000
250,000 8% due 12/15/2012 265,938
250,000 Rural Cellular Corp., 7.51% due 3/15/2010 (c) 253,125
350,000 SBA Communications Corp., 8.50% due 12/01/2012 (b) 371,000
250,000 SBA Telecommunications, Inc., 9.75% due 12/15/2011 (a) 218,750
-------------
5,673,938
Total Corporate Bonds
(Cost - $136,213,280) - 38.9% 136,100,591
Shares
Held Common Stocks
Chemicals - 0.1% 13,117 GEO Specialty Chemicals, Inc. (b)(f) 196,755
Energy - Other - 0.8% 160,000 Trico Marine Services, Inc. (f) 2,912,000
Paper - 0.1% 84,448 Western Forest Products, Inc. (f) 380,442
Total Common Stocks (Cost - $3,575,482) - 1.0% 3,489,197
Beneficial
Interest Short-Term Securities
$ 4,889,396 Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I (g) 4,889,396
Total Short-Term Securities
(Cost - $4,889,396) - 1.4% 4,889,396
Total Investments (Cost - $483,167,390***) - 138.1% 483,385,805
Liabilities in Excess of Other Assets - (38.1%) (133,475,786)
-------------
Net Assets - 100.0% $ 349,910,019
=============
* For Fund compliance purposes, "Industry" means any one or more of the industry sub-classifications used by
one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine such industry sub-classifications
for reporting ease.
** Floating rate loan interests in which the Fund invests generally pay interest at rates that are periodically
redetermined by reference to a base lending rate plus a premium. These base lending rates are generally
(i) the lending rate offered by one or more major European banks, such as LIBOR (London InterBank Offered Rate),
(ii) the prime rate offered by one or more major U.S. banks or (iii) the certificate of deposit rate.
*** The cost and unrealized appreciation (depreciation) of investments as of May 31, 2005,
as computed for federal income tax purposes, were as follows:
Aggregate cost $ 483,185,215
=================
Gross unrealized appreciation $ 6,875,999
Gross unrealized depreciation (6,675,409)
-----------------
Net unrealized appreciation $ 200,590
=================
(a) Represents a step bond; the interest rate shown reflects the effective yield at the time of purchase.
(b) The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the
Securities Act of 1933.
(c) Floating rate note.
(d) Represents a pay-in-kind security which may pay interest/dividends in additional face/shares.
(e) Convertible security.
(f) Non-income producing security.
(g) Investments in companies considered to be an affiliate of the Fund (such companies are defined
as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows:
Net Interest
Affiliate Activity Income
Merrill Lynch Liquidity Series,
LLC Cash Sweep Series I $ (1,465,174) $ 32,186
Swap contracts outstanding as of May 31, 2005 were as follows:
Notional Unrealized
Amount Depreciation
Sold credit default protection on
General Motors Corp. and receive
4.4%
Broker, Morgan Stanley Capital
Services, Inc.
Expires June 2007 $ 3,000,000 $ (57,912)
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our
evaluation of these controls and procedures as of a date within 90
days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of
the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
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.
Floating Rate Income Strategies Fund, Inc.
By: /s/ Robert C. Doll, Jr.
----------------------------
Robert C. Doll, Jr.
Chief Executive Officer
Floating Rate Income Strategies Fund, Inc.
Date: July 15, 2005
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: /s/ Robert C. Doll, Jr.
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Robert C. Doll, Jr.
Chief Executive Officer
Floating Rate Income Strategies Fund, Inc.
Date: July 15, 2005
By: /s/ Donald C. Burke
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Donald C. Burke
Chief Financial Officer
Floating Rate Income Strategies Fund, Inc
Date: July 15, 2005