QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

COMMON STOCKS - 102.1% (71.2% of Total Investments)

Aerospace & Defense - 6.1%

140,000

Lockheed Martin Corporation

$    7,809,200

235,000

Raytheon Company

8,925,300

16,734,500

Auto Components - 1.9%

555,000

Delphi Corporation

5,155,950

Chemicals - 2.3%

492,000

DSM NV Sponsored ADR

6,445,200

Commercial Banks - 5.1%

150,000

Wachovia Corporation

7,042,500

120,000

Wells Fargo & Company

7,155,600

14,198,100

Commercial Services & Supplies - 2.5%

155,000

Pitney Bowes Inc.

6,835,500

Communications Equipment - 2.2%

343,000

KT Corporation Sponsored ADR

6,198,010

Containers & Packaging - 2.2%

250,000

Packaging Corp of America

6,117,500

Diversified Financial Services - 5.4%

150,000

Citigroup Inc.

6,618,000

205,000

JPMorgan Chase & Co.

8,144,650

14,762,650

Diversified Telecommunication Services - 9.3%

235,000

SBC Communications Inc.

6,098,250

330,000

Sprint Corporation

6,642,900

235,000

Telecom Italia S.p.A. Sponsored ADR

5,416,750

190,000

Verizon Communications Inc.

7,482,200

25,640,100

Electric Utilities - 7.7%

110,000

Dominion Resources, Inc.

7,177,500

175,000

FirstEnergy Corp.

7,189,000

652,000

Korea Electric Power Corporation (KEPCO) Sponsored ADR

6,878,600

21,245,100

Food & Staples Retailing - 4.9%

375,000

Albertson's, Inc.

8,973,750

240,625

J. Sainsbury plc Sponsored ADR

4,523,750

13,497,500

Food Products - 1.2%

120,000

Tate & Lyle plc Sponsored ADR

3,366,000

Household Durables - 3.4%

207,000

Newell Rubbermaid Inc.

4,148,280

80,000

Kimberly-Clark Corporation

5,167,200

9,315,480

Insurance - 5.9%

390,000

Aon Corporation

11,208,600

80,000

The Hartford Financial Services Group, Inc.

4,954,400

16,163,000

Metals & Mining - 5.9%

404,000

Alumina Limited Sponsored ADR

6,609,440

90,000

Rio Tinto plc Sponsored ADR

9,778,500

16,387,940

Oil & Gas - 13.6%

80,000

ChevronTexaco Corporation

4,291,200

110,000

ConocoPhillips

9,113,500

53,000

Eni S.p.A. Sponsored ADR

5,951,900

215,000

Kerr-McGee Corporation

12,308,750

55,000

Total SA Sponsored ADR

5,619,350

37,284,700

Paper & Forest Products - 4.5%

125,000

International Paper Company

5,051,250

110,000

Weyerhaeuser Company

7,312,800

12,364,050

Road & Rail - 1.9%

90,000

Union Pacific Corporation

5,274,000

Thrifts & Mortgage Finance - 7.9%

192,000

Fannie Mae

12,172,800

265,000

IndyMac Bancorp, Inc.

9,593,000

21,765,800

Tobacco - 6.9%

235,000

Altria Group, Inc.

11,054,400

330,000

Loews Corp - Carolina Group

8,042,100

19,096,500

Water Utilities - 1.3%

180,000

United Utilities plc Sponsored ADR

3,664,800

Total Common Stocks (cost $269,014,717)

281,512,380

PREFERRED SECURITIES - 11.5% (8.0% of Total Investments)

Commercial Banks - 2.9%

40,600

Abbey National plc

7.375%

A2

A

$    1,081,584

23,500

Abbey National plc, Series B

7.375%

A2

A

635,440

80,000

ABN AMRO Capital Trust Fund VII

6.080%

A2

A

1,941,600

28,100

Citigroup Inc., Series H (a)

6.231%

Aa3

NA

1,544,095

36,800

Fannie Mae (a)

5.125%

Aa3

NA

1,652,320

40,000

Royal Bank of Scotland Group plc, Series M

6.400%

A1

A

1,010,800

7,865,839

Consumer Finance - 0.7%

36,100

SLM Corporation, Series A (a)

6.970%

Baa1

BBB+

2,066,725

Diversified Financial Services - 3.2%

17,500

Bear Stearns Companies Inc. Series F (a)

6.150%

A3

BBB

915,250

20,000

Citigroup Inc., Series F (a)

6.365%

Aa3

NA

1,084,600

12,000

Fannie Mae (a)

5.500%

Aa3

NA

565,800

26,900

Fannie Mae (a)

5.810%

Aa3

AA-

1,338,275

17,600

Federal Home Loan Mortgage Corporation (a)

6.000%

Aa3

AA-

915,200

21,900

Federal Home Loan Mortgage Corporation (a)

5.000%

Aa3

AA-

957,030

20,000

Federal Home Loan Mortgage Corporation (a)

5.700%

Aa3

AA-

992,000

77,700

Lehman Brothers Holdings Inc., Series F (a)

6.500%

NA

BBB+

2,041,956

8,810,111

Electric Utilities - 1.8%

39,500

Alabama Power Company, Series A

5.300%

Baa1

BBB+

976,393

8,500

Consolidated Edison Company of New York Inc.

5.000%

A3

BBB+

743,750

43,500

Interstate Power and Light Company (a)

7.100%

Baa3

BBB-

1,179,938

40,000

Mississippi Power Company

5.250%

NA

BBB+

986,252

40,000

Savannah Electric and Power Company

6.000%

Baa1

BBB+

1,050,000

4,936,333

Insurance - 2.5%

70,000

Ace Ltd., Series C

7.800%

Baa2

BBB-

1,883,000

40,000

Genworth Financial Inc., Series A

5.250%

Baa1

BBB+

2,111,252

25,600

ING Group NV

6.200%

A2

A-

627,968

5,000

ING Group NV

7.050%

NA

A-

130,650

48,400

ING Group NV

7.200%

A2

A-

1,287,440

30,000

Prudential plc

6.750%

Baa1

A

762,900

6,803,210

Oil & Gas - 0.4%

11,000

Devon Energy Corporation, Series A (a)

6.490%

Ba1

BB+

1,153,625

Total Preferred Securities (cost 31,598,810)

31,635,843

CORPORATE BONDS - 5.9% (4.1% of Total Investments)

Construction Materials - 1.2%

2,800

Texas Industries Inc.

10.250%

6/15/11

B1

BB-

3,234,000

Hotels, Restaurants & Leisure - 0.8%

2,000

Park Place Entertainment

8.875%

9/15/08

Ba2

BB-

2,285,000

Oil & Gas - 1.2%

3,000

Chesapeake Energy Corporation

8.375%

11/01/08

Ba3

BB-

3,285,000

Paper & Forest Products - 0.8%

2,000

Georgia Pacific Corporation

7.375%

7/15/08

Ba2

BB+

2,190,000

Real Estate - 1.9%

2,000

D.R. Horton, Inc.

7.500%

12/01/07

Ba1

BB+

2,210,000

2,000

Standard Pacific Corporation

6.500%

10/01/08

Ba2

BB

2,100,000

1,000

Standard Pacific Corporation

9.500%

9/15/10

Ba2

BB

1,100,000

5,410,000

Total Corporate Bonds (cost $16,065,136)

16,404,000

VARIABLE RATE SENIOR LOAN INTERESTS⁽²⁾ - 21.6% (15.0% of Total Investments)

Aerospace and Defense - 0.6%

215

Vought Aircraft Industries, Inc., Term Loan B

6/30/07

Ba3

B+

$    217,933

1,359

Vought Aircraft Industries, Inc., Term Loan C

6/30/08

Ba3

B+

1,375,074

1,593,007

Auto Components - 2.3%

2,000

Federal-Mogul Corporation, Term Loan A (b)

2/24/04

NR

NR

1,846,250

1,995

Mark IV Industries, Inc., Term Loan B

6/23/11

B1

BB-

2,028,042

2,260

Metaldyne Company LLC, Term Loan D

12/31/09

B2

BB-

2,259,784

6,134,076

Construction & Engineering - 1.6%

2,843

Amsted Industries Incorporated, Term Loan B

10/15/10

B1

BB-

2,878,176

2,000

Anthony Crane Rental, L.P., Term Loan

7/23/04

NR

NR

1,595,000

4,473,176

Containers & Packaging - 3.6%

3,000

Owens-Illinois Group, Inc., Term Loan B

4/01/08

B1

BB-

3,042,188

2,985

Solo Cup Company, Term Loan

2/27/11

B1

B+

3,014,850

1,676

Stone Container Corporation, Term Loan B

6/30/09

NR

NR

1,688,217

221

Stone Container Corporation, Term Loan C

6/30/09

NR

NR

223,018

1,990

United States Can Company, Term Loan B

1/15/10

B2

B

1,985,025

9,953,298

Diversified/Conglomerate Manufacturing - 0.7%

1,995

PP Holding Corporation, Term Loan

11/12/11

B1

B+

2,011,833

Electric Utilities - 0.7%

1,713

Sensus Metering Systems Inc., Term Loan B-1

12/17/10

B2

B+

1,734,457

257

Sensus Metering Systems Inc., Term Loan B-2

12/17/10

B2

B+

260,168

1,994,625

Healthcare Providers & Services - 1.4%

1,936

Alderwoods Group, Inc., Term Loan B-1

9/29/08

B1

BB-

1,965,687

1,995

IASIS Healthcare LLC, Term Loan B

6/22/11

B1

B+

2,021,683

3,987,370

Hotels, Restaurants & Leisure - 2.3%

1,990

24 Hour Fitness Worldwide, Inc., Term Loan B

7/01/09

B1

B

2,016,093

1,990

Jack in the Box Inc., Term Loan

1/09/10

Ba2

BB

2,017,363

2,289

Wyndham International, Inc., Term Loan II

4/01/06

NR

NR

2,285,705

6,319,161

Household Durables - 0.7%

1,839

Sealy Mattress Company, Term Loan C (Tranche C)

8/06/12

B2

B+

1,862,277

Insurance - 0.7%

2,000

Conseco, Inc., Term Loan

6/22/10

B2

BB-

2,035,417

Media - 4.5%

1,995

Charter Communications Operating, LLC, Term Loan B

4/07/11

B2

B

1,981,477

2,000

Freedom Communications, Inc., Term Loan B

5/18/12

Ba3

BB

2,032,500

2,000

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

4/26/11

NR

NR

2,008,000

1,930

Regal Cinemas Corporation, Term Loan

11/10/10

Ba3

BB-

1,953,665

944

Transwestern Publishing Company LLC, First Lien Term Loan B

2/25/11

B1

B+

951,314

995

Transwestern Publishing Company LLC, Second Lien Term Loan

2/25/12

B3

B-

1,004,329

2,237

WMG Acquisition Corp., Term Loan

2/27/11

B1

B+

2,270,632

12,201,917

Real Estate - 0.8%

2,055

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

3/20/06

NR

NR

2,074,126

Road & Rail - 1.0%

2,820

Laidlaw Inc., Term Loan B-1

6/19/09

Ba3

BB+

2,867,146

Wireless Telecommunication Services - 0.7%

1,985

Nextel Finance Company, Term Loan E

12/15/10

Ba1

BBB

1,997,008

Total Variable Rate Senior Loan Interests (cost $59,202,398)

59,504,437

REPURCHASE AGREEMENTS - 2.4% (1.7% of Total Investments)

6,618

State Street Bank, 1.7000%, dated 9/30/04, due 10/01/04, repurchase price $6,618,618

6,618,305

   collateralized by $5,710,000 U.S. Treasury Bonds, 6.250%, due 8/15/23, value $6,752,075

6,618

Total Repurchase Agreements (cost $6,618,305)

6,618,305

Total Investments (cost $382,499,366) - 143.5%

395,674,965

FundNotes (28.3)%

(78,000,000)

Other Assets Less Liabilities - 1.1%

3,037,974

FundPreferred Shares, at Liquidation Value (16.3)%

(45,000,000)

Net Assets Applicable to Common Shares - 100%

$    275,712,939

(1)  

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

shares unless otherwise noted.

(2)  

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

by reference to a base short-term, floating lending rate plus a premium. These base lending rates are

generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank

Offered Rate ("LIBOR"), (ii) the prime rate offered by one or more major United States banks, or (iii) the

certificate of deposit rate.

Senior Loans are generally considered to be 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.

*  

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

to be below investment grade.

**  

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

Because of these mandatory prepayment conditions and because there may be significant economic

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

As a result, the actual remaining maturity of Senior Loans held in the Fund's portfolio may be substantially

less than the stated maturities shown. The Fund estimates that the actual average maturity of the Senior

Loans held in it portfolio will be approximately 18-24 months.

(a)  

Security is eligible for the Dividends Received Deduction.

(b)  

At or subsequent to September 30, 2004, this issue was under protection of the federal bankruptcy court.

NR  

Not rated.

Income Tax Information

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

statement and federal income tax purposes are primarily due to recognition of premium amortization on

debt securities and timing differences in recognizing certain gains and losses on security transactions.

At September 30, 2004, the cost of investments was $382,658,427.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2004,

were as follows:

Gross unrealized:

   Appreciation

$21,349,850

   Depreciation

(8,333,312)

Net unrealized appreciation of investments

$13,016,538