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: 08/31/2006
Date of reporting period: 09/01/05 - 11/30/05
Item 1 - Schedule of Investments
Floating Rate Income Strategies Fund, Inc.
Schedule of Investments as of November 30, 2005 (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
Aerospace & Defense - 2.2% USD 1,951,854 K&F Industries, Inc. Term Loan, 6.45% due 11/18/2013 $ 1,975,032
2,101,911 MRO Acquisitions Corp. First Lien Term Loan, 6.57%
due 8/27/2010 2,130,812
2,919,247 Vought Aircraft Industries, Inc. Term Loan, 6.72% due
12/22/2011 2,952,544
560,000 Vought Aircraft Industries, Inc. Tranche B Line of
Credit Deposit, 6.364% due 12/22/2010 565,308
---------------
7,623,696
Airlines - 0.3% 1,000,000 Delta Air Lines, Inc. Term Loan B, 11.01% due
3/16/2008 1,038,000
Automotive - 2.5% 2,843,570 Affinia Group Term Loan B, 6.40% due 11/30/2011 2,822,955
1,660,870 Keystone Automotive Operations, Inc. Term Loan,
5.628% - 6.026% due 10/30/2009 1,675,402
2,896,483 Tenneco Automotive, Inc. Term Loan B, 6.63% due
12/12/2010 2,946,810
1,272,374 Tenneco Automotive, Inc. Tranche B-1 Credit Linked
Deposit, 6.339% due 12/12/2010 1,294,481
---------------
8,739,648
Broadcasting - 1.6% 2,970,000 Emmis Operating Co. Term Loan B, 5.89% due
11/10/2011 2,990,606
865,385 NextMedia Group, Inc. First Lien Term Loan, 6.12%
due 11/15/2012 872,596
1,750,000 NextMedia Group, Inc. Second Lien Term Loan,
6.115% due 11/15/2013 1,770,417
---------------
5,633,619
Cable - U.S. - 17.6% 12,000,000 Century Cable Holdings LLC, Discretionary Term
Loan, 9% due 12/31/2009 11,802,000
20,958,319 Charter Communications Operating LLC Tranche B
Term Loan, 7.42% - 7.50% due 4/07/2011 21,021,361
2,000,000 DIRECTV Holdings, Inc. Tranche B Term Loan,
5.386% - 5.64% due 4/13/2013 2,020,834
4,912,500 Insight Midwest Holdings LLC Term Loan C, 6.063%
due 12/31/2009 4,982,503
2,977,500 Intelsat Ltd. Term Loan, 5.25% due 7/28/2011 3,006,346
2,262,500 MCC Iowa, LLC Tranche A Term Loan, 5.12% -
5.54% due 3/31/2010 2,263,509
3,176,000 Mediacom Communications LLC Tranche B Term
Loan, 6.13% - 6.625% due 3/31/2013 3,222,150
6,930,000 PanAmSat Corp. Tranche B Term Loan 1, 6.107% due
8/20/2011 7,020,644
EUR 5,000,000 SatBirds Capital Participations Second Lien Term
Loan, 6.397% due 9/30/2013 5,972,872
---------------
61,312,219
Chemicals - 7.4% USD 1,970,000 Hercules, Inc. Term Loan B, 5.77% - 5.86%
due 10/08/2010 1,994,625
5,449,480 Huntsman ICI Holdings Term Loan B, 5.89% due
8/16/2012 5,478,433
2,313,912 Kosa B.V. (Invista) New Tranche B-1 Term Loan,
6.313% due 4/29/2011 2,352,959
994,343 Kosa B.V. (Invista) New Tranche B-2 Term Loan,
6.313% due 4/29/2011 1,011,123
990,000 Lyondell-Citgo Refining Term Loan, 5.67% - 6.191%
due 5/21/2007 1,004,850
6,658,852 Nalco Co. Tranche B Term Loan, 5.66% - 5.96%
due 11/04/2010 6,758,735
458,229 Pinnacle Polymers Term Loan, 6.58% due 12/15/2006 463,272
1,990,000 Rockwood Specialties Group, Inc. Tranche D Term
Loan, 6.466% due 12/10/2012 2,018,073
4,750,000 Wellman, Inc. Second Lien Term Loan, 11% due
2/10/2010 4,837,082
---------------
25,919,152
Consumer - Durables - 2.0% 4,500,000 Simmons Co. Term Loan, 7% due 6/19/2012 4,554,846
2,376,127 Simmons Co. Tranche B Term Loan, 5.75% - 8.50%
due 12/19/2011 2,369,072
---------------
6,923,918
Consumer - Non-Durables - 1.2% 1,786,014 American Achievement Corp. Term Loan B, 6.37% -
8.75% due 3/22/2011 1,812,804
1,492,500 Burt's Bees, Inc. Term Loan, 6.41% - 7.04%
due 3/29/2011 1,504,627
909,000 Camelbak Products LLC First Lien Term Loan, 7.29% -
7.38% due 8/04/2011 901,046
---------------
4,218,477
Diversified Media - 4.6% 1,194,000 Freedom Communications, Inc. Tranche B Term Loan,
5.37% - 5.53% due 5/01/2013 1,203,552
4,647,521 Liberty Group Operating Term Loan B, 6.125% -
6.375% due 2/28/2012 4,690,366
10,000,000 Metro-Goldwyn-Mayer Studios, Inc. Term Loan B,
6.27% due 4/30/2011 10,074,430
---------------
15,968,348
Energy - Exploration & 2,000,000 Exco Holdings, Inc. Term Loan, 10% due 8/30/2006 1,985,000
Production - 1.1% 2,000,000 Txok Acquisition Term Loan C, 8.875% due 9/27/2010 2,025,000
---------------
4,010,000
Energy - Other - 1.7% 2,750,000 Dresser, Inc. Term Loan Unsecured, 7.99% due
2/25/2010 2,798,125
1,500,000 Epco, Inc. Term Loan B Tranche 3, 6.409% - 6.603%
due 8/18/2010 1,522,734
1,500,000 Key Energy Services, Inc. Term Loan B, 7.02% -
7.28% due 6/30/2012 1,523,126
---------------
5,843,985
Food & Drug - 0.2% 751,913 Alimentation Couche-Tard, Inc. US Term Loan,
5.875% due 12/17/2010 761,312
Food & Tobacco - 3.0% 3,184,780 Constellation Brands Term Loan B, 5.438% - 6% due
11/30/2011 3,206,479
1,137,500 Doane Pet Care Co. Tranche B Term Loan, 6.621% -
6.367% due 10/24/2012 1,153,141
5,304,722 Dr. Pepper/Seven Up Bottling Group, Inc. Term Loan
B, 6.08% - 6.159% due 12/19/2010 5,387,610
844,167 Pierre Foods, Inc. Term Loan B, 6.37% - 6.56% due
6/30/2010 855,774
---------------
10,603,004
Gaming - 5.7% 1,975,000 Boyd Gaming Corp. Term Loan, 5.52% - 5.70%
due 6/30/2011 1,999,071
895,085 Global Cash Access LLC Term Loan B, 6.47% due
3/10/2010 908,511
1,970,113 Green Valley Ranch Gaming LLC Term Loan, 6.02%
due 12/22/2010 1,994,739
900,000 Isle of Capri Black Hawk Term Loan B, 5.85% - 6.39%
due 10/24/2011 907,313
997,500 Isle of Capri Casinos, Inc. Tranche 3 Delay Draw Term
Loan, 5.95% due 2/04/2011 1,000,410
3,250,000 Penn National Gaming, Inc. Term Loan B, 6.22% -
6.51% due 9/01/2007 3,295,958
1,560,096 Pinnacle Entertainment, Inc. Delay Draw Term Loan,
7.22% due 8/27/2010 1,572,772
1,800,000 Pinnacle Entertainment, Inc. Term Loan B, 7.22% due
8/27/2010 1,812,375
870,000 Trump Entertainment Resorts Holdings LP Revolving
Line of Credit, 6.21% - 6.85% due 5/01/2010 843,900
1,496,250 Trump Entertainment Resorts Holdings LP Term Loan
B-1, 6.14% due 5/01/2012 1,511,213
1,000,000 Venetian Casino Resort LLC Delayed Draw Term
Loan, 5.77% due 6/15/2011 1,009,375
3,100,000 Venetian Casino Resort LLC Term Loan B, 5.77% due
6/15/2011 3,129,063
---------------
19,984,700
Health Care - 4.4% 2,877,273 Colgate Medical Term Loan B, 6.01% - 6.03% due
12/15/2008 2,906,045
2,772,000 Community Health Systems, Inc. Term Loan, 5.97% -
6.16% due 8/19/2011 2,808,383
3,300,000 DaVita Inc. Tranche B Term Loan, 6.35% - 6.64% due
10/05/2012 3,350,645
1,250,000 Duloxetine Royalty Term Loan, 8.688% due 10/18/2013 1,256,250
1,963,828 HealthSouth Corp. Term Loan, 6.53% due 3/08/2010 1,975,181
531,250 HealthSouth Corp. Tranche B Term Loan, 6.364% due
3/08/2010 534,321
1,949,458 LifePoint Hospitals, Inc. Term Loan B, 6.185% due
4/15/2012 1,963,317
678,042 Rotech Healthcare, Inc. Term Loan B, 7.03% due
3/31/2008 683,127
---------------
15,477,269
Housing - 3.9% 2,086,541 General Growth Properties, Inc. Term Loan B, 6.22%
due 11/12/2008 2,101,668
3,088,961 Headwaters, Inc. Term Loan B-1, 6.43% - 8.25%
due 4/30/2011 3,118,563
1,406,053 Lions Gables Realty Term Loan B, 5.84% due 9/30/2006 1,413,083
2,468,750 Nortek, Inc. Term Loan, 5.91% due 8/27/2011 2,494,980
4,452,057 PGT Industries, Inc. Term Loan A, 7.14% - 7.23% due
1/29/2010 4,507,708
---------------
13,636,002
Information Technology - 2.2% 3,530,000 Fidelity National Information Solutions, Inc. Term
Loan B, 5.864% due 3/09/2013 3,544,657
1,995,000 SunGard Data Systems, Inc. Term Loan B, 6.68% -
6.81% due 2/11/2013 2,010,982
1,990,000 Telcordia Technologies, Inc. Term Loan, 6.51% -
6.906% due 9/15/2012 1,975,698
---------------
7,531,337
Leisure - 1.2% 4,000,000 24 Hour Fitness Term Loan B, 6.78% due 6/08/2012 4,062,500
Manufacturing - 5.1% 2,222,222 Communications & Power Industries, Inc. Term Loan,
6.37% due 7/23/2010 2,255,556
2,000,000 Invensys International Holdings Ltd. Second Lien Term
Loan, 8.529% due 12/04/2009 2,050,000
302,318 Itron, Inc. Tranche C Term Loan, 5.938% - 8.25% due
12/17/2010 304,586
2,487,500 Metokote Corp. Second Lien Term Loan, 7.17% -
7.25% due 11/27/2011 2,496,828
4,500,000 Mueller Group LLC Term Loan B, 6.304% - 6.656%
due 10/03/2012 4,564,287
5,284,783 Sensus Metering Systems, Inc. Term Loan B-1, 6.35% -
6.54% due 12/17/2010 5,347,539
824,511 Sensus Metering Systems, Inc. Term Loan B-2, 6.35% -
6.54% due 12/19/2010 834,302
---------------
17,853,098
Packaging - 4.3% 6,051,611 Berry Plastics Corp. Term Loan, 5.855% due 7/22/2010 6,128,515
2,977,500 Graham Packaging Co. LP Term Loan B, 6.375% -
6.625% due 10/07/2011 3,020,534
1,980,000 Intertape Polymer US, Inc. Term Loan B, 6.084% -
6.38% due 7/28/2011 2,008,874
525,619 Owens-Illinois Group, Inc. Term Loan B-1, 5.92% due
4/01/2008 529,561
3,240,129 Owens-Illinois Group, Inc. Tranche Term Loan C,
6.12% due 4/01/2008 3,264,430
---------------
14,951,914
Paper - 2.1% 1,362,429 Boise Cascade Holdings LLC Tranche D Term Loan,
5.781% - 6% due 10/28/2011 1,380,594
1,972,738 SP Newsprint Co. Tranche B-1 Credit Linked Deposit,
4.194% due 1/09/2010 2,002,329
803,551 SP Newsprint Co. Tranche B-1 Term Loan, 6.37% -
6.47% due 1/09/2010 815,604
2,276,912 Smurfit Stone Container Corp. Term Loan B, 5.875% -
6.438% due 11/01/2011 2,304,663
700,588 Smurfit Stone Container Corp. Tranche C, 5.875% -
6.125% due 11/01/2011 709,127
---------------
7,212,317
Retail - 1.4% 1,750,000 American Reprographics Co. LLC Second Lien Term
Loan, 10.636% due 12/18/2009 1,793,750
1,691,476 General Nutrition Centers, Inc. Tranche B Term Loan,
7.22% - 7.40% due 12/05/2009 1,714,733
1,500,000 The Neiman Marcus Group, Inc. Term Loan, 6.475%
due 4/06/2013 1,508,523
---------------
5,017,006
Service - 1.8% 2,863,750 Buhrmann USA, Inc. Term Loan C, 6.386% - 6.585%
due 12/23/2010 2,906,706
2,475,431 Coinstar, Inc. Term Loan, 6.10% due 7/07/2011 2,520,300
812,193 United Rentals, Inc. Term Loan, 6.45% due 2/14/2011 821,432
164,912 United Rentals, Inc. Tranche B Credit Linked Deposit,
6.114% due 2/14/2011 166,788
---------------
6,415,226
Telecommunications - 0.6% 2,172,500 Consolidated Communications, Inc. Term Loan D,
6.27% - 6.618% due 10/14/2011 2,194,225
Utility - 13.2% 1,571,429 AES Corp. Term Loan, 5.07% - 5.69% due 4/30/2008 1,592,053
4,902,198 Calpine Corp. Term Loan B, 9.90% due 7/16/2007 3,764,889
1,500,000 Calpine Generating Co. LLC First Lien Term Loan,
7.839% due 4/01/2009 1,531,407
2,500,000 Calpine Generating Co. LLC Second Lien Term Loan,
9.839% due 3/11/2010 2,538,125
3,650,562 Cogentrix Delaware Holdings, Inc. Term Loan, 5.78%
due 4/15/2012 3,695,055
2,487,805 Covanta Energy Corp. First Lien Letter of Credit,
3.36% due 6/24/2012 2,523,567
2,012,195 Covanta Energy Corp. First Lien Term Loan, 6.46%
due 6/24/2012 2,041,120
2,494,970 Covanta Energy Corp. Second Lien Term Loan,
9.461% - 9.691% due 6/24/2013 2,513,682
1,425,000 El Paso Corp. Deposit Account, 2.616% due 11/23/2009 1,432,421
2,337,000 El Paso Corp. Term Loan, 6.813% due 11/23/2009 2,352,417
4,975,000 KGen LLC Tranche A Term Loan, 6.645% due 8/05/2011 4,968,781
2,500,000 LSP Kendall Term Loan A, 6.09% due 10/07/2013 2,492,970
437,251 Midwest Generation LLC Term Loan C, 6.05% - 6.22%
due 4/27/2011 442,377
700,000 NRG Energy Credit Linked Deposit, 3.92% due
12/24/2007 704,521
893,250 NRG Energy Term Loan, 5.895% due 12/24/2011 899,019
2,358,333 Quanta Services, Inc. Credit Linked Deposit, 3.89% -
6.88% due 6/19/2008 2,384,865
3,076,750 Reliant Energy, Inc. Term Loan, 6.089% - 6.566%
due 4/30/2010 3,081,559
2,035,923 Texas Genco LLC Delayed Draw Term Loan, 5.87% -
6.114% due 12/14/2011 2,041,489
4,916,692 Texas Genco LLC Term Loan B, 5.87% - 6.114%
due 12/14/2011 4,930,135
---------------
45,930,452
Wireless Communications - 0.7% 2,308,875 Centennial Cellular Operating Co. Term Loan, 5.77% -
6.56% due 2/09/2011 2,321,682
Total Floating Rate Loan Interests
(Cost - $319,816,938) - 92.0% 321,183,106
Corporate Bonds
Aerospace & Defense - 0.2% 575,000 L-3 Communications Corp., 6.375% due 10/15/2015 (b) 566,375
Automotive - 0.2% 700,000 Tenneco Automotive, Inc., 8.625% due 11/15/2014 653,625
Broadcasting - 3.4% 2,150,000 Emmis Communications Corp., 10.366%
due 6/15/2012 (a) 2,152,687
4,000,000 Granite Broadcasting Corp., 9.75% due 12/01/2010 3,720,000
5,750,000 Paxson Communications Corp., 6.90% due 1/15/2010 (a)(b) 5,764,375
250,000 XM Satellite Radio, Inc., 9.75% due 5/01/2009 (a) 252,500
---------------
11,889,562
Cable - International - 0.1% 375,000 NTL Cable Plc, 8.75% due 4/15/2014 393,750
Cable - U.S. - 0.3% 750,000 Intelsat Bermuda Ltd., 8.695% due 1/15/2012 (a)(b) 761,250
500,000 Intelsat Bermuda Ltd., 8.25% due 1/15/2013 (b) 500,000
---------------
1,261,250
Chemicals - 1.5% 2,011,000 GEO Specialty Chemicals, Inc., 12.016% due
12/31/2009 (c) 1,749,570
1,125,000 Nova Chemical Corp., 7.561% due 11/15/2013 (a)(b) 1,147,500
2,275,000 PolyOne Corp., 10.625% due 5/15/2010 2,343,250
---------------
5,240,320
Consumer - Non-Durables - 0.8% 250,000 Elizabeth Arden, Inc., 7.75% due 1/15/2014 250,625
2,000,000 Playtex Products, Inc., 8% due 3/01/2011 2,120,000
350,000 Samsonite Corp., 8.875% due 6/01/2011 357,875
---------------
2,728,500
Diversified Media - 0.1% 250,000 Universal City Florida Holding Co. I, 9% due
5/01/2010 (a) 253,125
Energy - Exploration & 250,000 Belden & Blake Corp., 8.75% due 7/15/2012 256,250
Production - 0.1%
Energy - Other - 0.1% 250,000 Aventine Renewable Energy Holdings, Inc., 10.491%
due 12/15/2011 (a)(b) 260,000
Food & Tobacco - 1.2% 250,000 AmeriQual Group LLC, 9% due 4/01/2012 (b) 258,750
3,000,000 Smithfield Foods, Inc., 7% due 8/01/2011 3,056,250
1,050,000 The Wornick Co., 10.875% due 7/15/2011 1,082,812
---------------
4,397,812
Gaming - 2.2% 5,000,000 Majestic Star Casino LLC, 9.50% due 10/15/2010 4,906,250
250,000 Mohegan Tribal Gaming Authority, 7.125% due
8/15/2014 255,000
325,000 River Rock Entertainment Authority, 9.75% due
11/01/2011 350,187
1,275,000 Station Casinos, Inc., 6% due 4/01/2012 1,271,812
775,000 Station Casinos, Inc., 6.50% due 2/01/2014 778,875
---------------
7,562,124
Health Care - 0.2% 575,000 US Oncology, Inc., 9% due 8/15/2012 613,812
Information Technology - 3.6% 4,050,000 Freescale Semiconductor, Inc., 6.90% due 7/15/2009 (a) 4,151,250
4,625,000 MagnaChip Semiconductor SA, 7.741% due
12/15/2011 (a) 4,671,250
1,825,000 Sungard Data Systems, Inc., 8.525% due 8/15/2013 (a)(b) 1,891,156
1,900,000 Sungard Data Systems, Inc., 10.25% due 8/15/2015 (b) 1,919,000
---------------
12,632,656
Leisure - 1.6% 5,400,000 Felcor Lodging LP, 8.83% due 6/01/2011 (a) 5,616,000
Manufacturing - 2.0% 250,000 Altra Industrial Motion, Inc., 9% due 12/01/2011 (b) 242,500
2,500,000 Case New Holland, Inc., 6% due 6/01/2009 2,400,000
325,000 ERICO International Corp., 8.875% due 3/01/2012 336,375
2,900,000 Invensys Plc, 9.875% due 3/15/2011 (b) 2,842,000
1,369,000 Medis Technologies Ltd., 6% due 7/15/2010 (b)(c) 1,232,100
---------------
7,052,975
Metal - Other - 0.2% 700,000 Novelis, Inc., 7.25% due 2/15/2015 654,500
Packaging - 0.4% 1,725,000 Wise Metals Group LLC, 10.25% due 5/15/2012 1,328,250
Paper - 2.3% 2,650,000 Abitibi-Consolidated, Inc., 7.991% due 6/15/2011 (a) 2,544,000
700,000 Ainsworth Lumber Co. Ltd., 7.77% due 10/01/2010 (a) 682,500
250,000 Boise Cascade LLC, 7.025% due 10/15/2012 (a) 242,500
725,000 Domtar, Inc., 7.125% due 8/15/2015 641,625
925,000 NewPage Corp., 10.50% due 5/01/2012 (a) 915,750
2,912,000 Western Forest Products, Inc., 15% due 7/28/2009 (f) 3,167,197
---------------
8,193,572
Retail - 1.0% 1,600,000 Jean Coutu Group, Inc., 8.50% due 8/01/2014 1,484,000
2,000,000 Neiman-Marcus Group, Inc., 9% due 10/15/2015 (b) 2,035,000
---------------
3,519,000
Service - 1.8% 250,000 Ahern Rentals, Inc., 9.25% due 8/15/2013 (b) 259,375
3,375,000 Allied Waste North America, Inc. Series B, 7.375% due
4/15/2014 3,256,875
600,000 Dycom Industries, Inc., 8.125% due 10/15/2015 (b) 600,000
250,000 Mac-Gray Corp., 7.625% due 8/15/2015 254,375
2,000,000 Sunstate Equipment Co. LLC, 10.50% due 4/01/2013 (b) 2,030,000
---------------
6,400,625
Steel - 2.4% 3,000,000 CSN Islands VIII Corp., 9.75% due 12/16/2013 (b) 3,270,000
5,000,000 Ispat Inland ULC, 10.804% due 4/01/2010 (a) 5,200,000
---------------
8,470,000
Telecommunications - 4.7% 6,000,000 Cincinnati Bell, Inc., 8.375% due 1/15/2014 5,880,000
3,700,000 Qwest Communications International, Inc., 7.84% due
2/15/2009 (a) 3,750,875
1,450,000 Qwest Corp., 7.741% due 6/15/2013 (a)(b) 1,562,375
2,000,000 Terremark Worldwide, Inc., 9% due 6/15/2009 (c) 1,670,000
3,500,000 Time Warner Telecom Holdings, Inc., 8.34% due
2/15/2011 (a) 3,578,750
---------------
16,442,000
Utility - 2.5% 2,000,000 Aquila, Inc., 7.625% due 11/15/2009 2,040,000
3,000,000 Calpine Canada Energy Finance Ulc, 8.50% due
5/01/2008 840,000
3,000,000 Calpine Corp., 9.875% due 12/01/2011 (b) 2,355,000
4,000,000 Reliant Energy, Inc., 6.75% due 12/15/2014 3,500,000
---------------
8,735,000
Wireless Communications - 1.4% 3,250,000 Rogers Wireless Communications, Inc., 7.616% due
12/15/2010 (a) 3,355,625
1,100,000 Rogers Wireless Communications, Inc., 7.25% due
12/15/2012 1,156,375
250,000 Rural Cellular Corp., 8.991% due 3/15/2010 (a) 256,875
---------------
4,768,875
Total Corporate Bonds (Cost - $121,725,651) - 34.3% 119,889,958
Shares
Held Common Stocks
Chemicals - 0.0% 13,117 GEO Specialty Chemicals, Inc. (e) 59,026
Energy - Other - 0.9% 127,985 Trico Marine Services, Inc. (e) 3,188,106
Paper - 0.1% 84,448 Western Forest Products, Inc. (e) 169,828
Total Common Stocks (Cost - $2,943,636) - 1.0% 3,416,960
Warrants (d)
Utility - 0.0% 4,558 Reliant Resources (expires 10/25/2008) 23,747
Total Warrants (Cost - $0) - 0.0% 23,747
Total Investments (Cost - $444,486,225*) - 127.3% 444,513,771
Liabilities in Excess of Other Assets - (27.3%) (95,237,055)
---------------
Net Assets - 100.0% $ 349,276,716
===============
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2005, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 444,420,510
================
Gross unrealized appreciation $ 6,550,061
Gross unrealized depreciation (6,456,800)
----------------
Net unrealized appreciation $ 93,261
================
** Floating rate loan interests in which the Fund invests generally pay interest
at rates that are periodically predetermined by reference to a base lending rate
plus a premium. The 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.
(a) Floating rate note.
(b) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(c) Convertible security.
(d) Warrants entitle the Fund to purchase a predetermined number of shares of common
stock and are non-income producing. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration date.
(e) Non-income producing security.
(f) Represents a pay-in-kind security that may pay interest/dividends in additional
face/shares.
For Fund compliance purposes, the Fund's industry classifications refer to 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 industry sub-classifications for reporting ease.
Industries are shown as a percent of net assets.
Investments in companies considered to be an affiliate of the Fund, for purposes
of 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 - $ 10,432
Swap contracts outstanding as of November 30, 2005 were as follows:
Notional Unrealized
Amount Depreciation
Sold credit default protection on
General Motors Corp.
and receive 4.40%
Broker, Morgan Stanley Capital
Services, Inc.
Expires June 2007 $ 3,000,000 $ (360,060)
Currency Abbreviations:
EUR Euro
USD U.S. Dollar
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: January 25, 2006
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.
------------------------
Robert C. Doll, Jr.
Chief Executive Officer
Floating Rate Income Strategies Fund, Inc.
Date: January 25, 2006
By: /s/ Donald C. Burke
------------------------
Donald C. Burke
Chief Financial Officer
Floating Rate Income Strategies Fund, Inc.
Date: January 25, 2006