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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY |
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Investment Company Act file number 811-21972 Name of Fund: BlackRock Preferred and Equity Advantage Trust (BTZ) Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Preferred and Equity Advantage Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant’s telephone number, including area code: (800) 882-0052, Option 4 Date of fiscal year end: 10/31/2009 Date of reporting period: 11/01/2008 – 01/31/2009 Item 1 – Schedule of Investments |
| BlackRock Preferred and Equity Advantage Trust | ||||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||||
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| Preferred Securities | ||||||||
| Par | ||||||||
| Industry | Capital Trusts | (000) | Value | |||||
| Building Products - 0.3% | C8 Capital SPV Ltd., 6.64% (a)(b)(c) | $ 3,160 | $ 1,326,821 | |||||
| Capital Markets - 2.2% | Credit Suisse Guernsey Ltd., 5.86% (b)(c) | 1,050 | 383,031 | |||||
| State Street Capital Trust III, 8.25% (b)(c) | 1,740 | 1,323,044 | ||||||
| State Street Capital Trust IV, 2.996%, 6/01/67 (c)(d) | 25,245 | 8,608,394 | ||||||
| 10,314,469 | ||||||||
| Commercial Banks - 16.2% | Abbey National Capital Trust I, 8.963% (b)(c) | 2,375 | 1,541,938 | |||||
| BB&T Capital Trust IV, 6.82%, 6/12/77 (c)(d) | 15,300 | 9,021,125 | ||||||
| Bank of Ireland Capital Funding II, LP, | ||||||||
| 5.571% (a)(b)(c) | 6,685 | 664,355 | ||||||
| Bank of Ireland Capital Funding III, LP, | ||||||||
| 6.107% (a)(b)(c)(d) | 26,600 | 2,644,758 | ||||||
| Barclays Bank Plc, 5.926% (a)(b)(c) | 13,200 | 5,672,040 | ||||||
| Barclays Bank Plc, 6.86% (a)(b)(c) | 11,500 | 5,170,055 | ||||||
| Commonwealth Bank of Australia, | ||||||||
| 6.024% (a)(b)(c)(d) | 20,000 | 9,694,200 | ||||||
| HSBC Capital Funding LP/Jersey Channel | ||||||||
| Islands, 10.176% (a)(b)(c)(d) | 7,000 | 6,061,097 | ||||||
| Huntington Capital III, 6.65%, 5/15/37 (c) | 1,945 | 829,155 | ||||||
| Lloyds Banking Group Plc, 6.657% (a)(b)(c) | 10,000 | 1,889,070 | ||||||
| Regions Financing Trust II, 6.625%, 5/15/47 (c) | 3,065 | 1,614,666 | ||||||
| Royal Bank of Scotland Group Plc, 7.648% (b)(c) | 3,130 | 907,262 | ||||||
| SMFG Preferred Capital USD 1 Ltd., | ||||||||
| 6.078% (a)(b)(c)(d) | 10,000 | 6,681,500 | ||||||
| SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c) | 3,850 | 3,663,073 | ||||||
| Shinsei Finance II (Cayman) Ltd., 7.16% (a)(b)(c) | 1,005 | 130,965 | ||||||
| Standard Chartered Bank, 7.014% (a)(b)(c) | 5,125 | 2,004,136 | ||||||
| Wells Fargo & Co. Series K, 7.98% (b)(c) | 23,000 | 14,260,000 | ||||||
| Wells Fargo Capital XIII Series GMTN, 7.70% (b)(c)(e) | 3,900 | 2,796,241 | ||||||
| 75,245,636 | ||||||||
| Diversified Financial | C10 Capital SPV Ltd., 6.722% (a)(b)(c) | 5,000 | 2,095,800 | |||||
| Services - 0.4% | ||||||||
| Electric Utilities - 0.5% | PPL Capital Funding, 6.70%, 3/30/67 (c) | 3,900 | 2,145,000 | |||||
| Insurance - 21.4% | AXA SA, 6.463% (a)(b)(c) | 12,000 | 5,262,840 | |||||
| The Allstate Corp., 6.50%, 5/15/57 (c) | 8,675 | 5,600,745 | ||||||
| The Allstate Corp., Series B, 6.125%, 5/15/67 (c) | 8,725 | 5,783,523 | ||||||
| American International Group, Inc., 8.175%, | ||||||||
| 5/15/58 (a)(c) | 8,800 | 3,266,463 | ||||||
| American International Group, Inc., 6.25%, | ||||||||
| 3/15/87 (d) | 13,225 | 4,281,594 | ||||||
| Chubb Corp., 6.375%, 3/29/67 (c)(d) | 15,300 | 10,327,423 | ||||||
| Everest Reinsurance Holdings, Inc., 6.60%, | ||||||||
| 5/01/67 (c) | 12,025 | 4,956,188 | ||||||
| Liberty Mutual Group, Inc., 7%, 3/15/37 (a)(c) | 11,600 | 5,399,371 | ||||||
| Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(c) | 6,200 | 3,720,000 | ||||||
1
| BlackRock Preferred and Equity Advantage Trust | ||||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||||
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| Par | ||||||||
| Industry | Capital Trusts | (000) | Value | |||||
| Lincoln National Corp., 7%, 5/17/66 (c) | $ 4,255 | $ 1,966,023 | ||||||
| Lincoln National Corp., 6.05%, 4/20/67 (c) | 4,730 | 2,128,500 | ||||||
| MetLife, Inc., 6.40%, 12/15/66 | 4,550 | 2,766,336 | ||||||
| Nationwide Life Global Funding I, 6.75%, 5/15/67 | 8,025 | 3,507,206 | ||||||
| Progressive Corp., 6.70%, 6/15/37 (c)(d) | 19,675 | 11,084,521 | ||||||
| Reinsurance Group of America, 6.75%, | ||||||||
| 12/15/65 (c)(d) | 15,000 | 5,568,825 | ||||||
| Swiss Re Capital I LP, 6.854% (a)(b)(c)(d) | 27,475 | 9,543,743 | ||||||
| The Travelers Cos., Inc., 6.25%, 3/15/67 (c)(d) | 9,000 | 5,938,065 | ||||||
| White Mountains Re Group Ltd., 7.506% (a)(b)(c) | 4,400 | 1,509,160 | ||||||
| ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c) | 2,050 | 759,381 | ||||||
| ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(d) | 13,220 | 5,949,000 | ||||||
| 99,318,907 | ||||||||
| Multi-Utilities - 0.2% | Puget Sound Energy, Inc. Series A, 6.974%, | |||||||
| 6/01/67 (c) | 1,575 | 799,312 | ||||||
| Oil, Gas & Consumable | Enterprise Products Operating LLC, 8.375%, | |||||||
| Fuels - 2.0% | 8/01/66 (c) | 4,500 | 2,835,000 | |||||
| Southern Union Co., 7.20%, 11/01/66 (c) | 5,000 | 2,125,000 | ||||||
| TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)(d) | 7,325 | 4,168,518 | ||||||
| 9,128,518 | ||||||||
| Thrifts & Mortgage | Webster Capital Trust IV, 7.65%, 6/15/37 (c) | 3,225 | 1,325,727 | |||||
| Finance - 0.3% | ||||||||
| Total Capital Trusts - 43.5% | 201,700,190 | |||||||
| Preferred Stocks | Shares | |||||||
| Commercial Banks - 6.6% | Citizens Funding Trust I, 7.50%, 9/15/66 | 5,250,000 | 2,279,594 | |||||
| HSBC USA, Inc. Series H, 6.50% | 977,766 | 17,687,787 | ||||||
| Royal Bank of Scotland Group Plc, Series L, 5.75% | 92,200 | 418,588 | ||||||
| Royal Bank of Scotland Group Plc, Series M, 6.40% | 15,000 | 75,750 | ||||||
| Royal Bank of Scotland Group Plc, Series S, 6.60% | 10,000 | 50,100 | ||||||
| Santander Finance Preferred SA Unipersonal, 6.80% | 597,500 | 10,175,425 | ||||||
| 30,687,244 | ||||||||
| Diversified Financial | Bank of America Corp., Series K, 8% (c)(d) | 8,755,000 | 4,637,086 | |||||
| Services - 6.2% | Bank of America Corp., Series M, 8.125% (c)(d) | 11,900,000 | 6,174,791 | |||||
| Citigroup, Inc. Series T, 6.50% (f) | 90,000 | 1,372,500 | ||||||
| Cobank ACB, 7% (a) | 150,000 | 4,032,300 | ||||||
| ING Groep NV, 6.125% | 200,000 | 2,238,000 | ||||||
| ING Groep NV, 7.05% | 5,800 | 72,036 | ||||||
| ING Groep NV, 7.20% | 5,325,000 | 2,695,515 | ||||||
| ING Groep NV, 7.375% | 1,000,000 | 511,913 | ||||||
| JPMorgan Chase & Co., 7.90% (c) | 9,165,000 | 6,965,858 | ||||||
| 28,699,999 | ||||||||
| Diversified Telecommunication | AT&T, Inc., 6.375%, 2/15/56 | 750,000 | 751,280 | |||||
| Services - 0.2% | ||||||||
| Electric Utilities - 5.4% | Alabama Power Co., 6.50% | 100,000 | 2,300,000 | |||||
| Entergy Louisiana LLC, 6.95% | 40,000 | 2,000,000 | ||||||
2
| BlackRock Preferred and Equity Advantage Trust | ||||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||||
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| Industry | Preferred Stocks | Shares | Value | |||||
| Interstate Power & Light Co. Series B, 8.375% | 785,000 | $ 20,959,500 | ||||||
| 25,259,500 | ||||||||
| Insurance - 10.3% | Aegon NV, 6.50% | 400,000 | 4,796,000 | |||||
| Arch Capital Group Ltd., Series A, 8% | 100,000 | 2,200,000 | ||||||
| Arch Capital Group Ltd., Series B, 7.875% | 160,000 | 3,332,800 | ||||||
| Aspen Insurance Holdings Ltd., 7.401% (c) | 655,000 | 9,615,400 | ||||||
| Axis Capital Holdings Ltd. Series B, 7.50% (c) | 180,000 | 11,030,634 | ||||||
| Endurance Specialty Holdings Ltd. Series A, 7.75% | 369,000 | 5,985,180 | ||||||
| PartnerRe Ltd. Series C, 6.75% | 265,600 | 5,312,000 | ||||||
| RenaissanceRe Holding Ltd. Series D, 6.60% | 285,000 | 5,244,000 | ||||||
| XL Capital Ltd. Series C, 6.10% (c) | 400,000 | 100,000 | ||||||
| 47,616,014 | ||||||||
| Real Estate Investment Trusts | BRE Properties, Inc. Series D, 6.75% | 30,000 | 496,500 | |||||
| (REITs) - 2.0% | iStar Financial, Inc. Series I, 7.50% | 55,000 | 154,000 | |||||
| Public Storage, Series F, 6.45% | 30,000 | 557,700 | ||||||
| Public Storage, Series M, 6.625% | 55,000 | 1,100,000 | ||||||
| Sovereign Real Estate Investment Corp., 12% | 10,000 | 7,000,000 | ||||||
| 9,308,200 | ||||||||
| Wireless Telecommunication | Centaur Funding Corp., 9.08% (a) | 10,000 | 6,296,875 | |||||
| Services - 1.3% | ||||||||
| Total Preferred Stocks - 32.0% | 148,619,112 | |||||||
| Par | ||||||||
| Trust Preferreds | (000) | |||||||
| Capital Markets - 0.0% | Credit Suisse Guernsey Ltd., 7.90% (b) | $ 250 | 182,567 | |||||
| Commercial Banks - 4.8% | Kazkommerts Finance 2 BV, 9.20% (b)(c) | 500 | 71,225 | |||||
| KeyCorp Capital IX, 6.75% | 9,083 | 5,238,672 | ||||||
| Mizuho Capital Investment 1 Ltd., 6.686% (a)(b)(c)(d) | 21,000 | 13,514,340 | ||||||
| National City Preferred Capital Trust I, 12% (b)(c) | 3,713 | 3,337,393 | ||||||
| 22,161,630 | ||||||||
| Diversified Financial | JPMorgan Chase Capital XXI Series U, 2.12%, | |||||||
| Services - 3.4% | 2/02/37 (c)(d) | 12,875 | 5,796,956 | |||||
| JPMorgan Chase Capital XXIII, 2.238%, 5/15/77 (c)(d) | 13,800 | 5,524,954 | ||||||
| JPMorgan Chase Capital XXV, 6.80%, 10/01/37 | 5,650 | 4,460,325 | ||||||
| 15,782,235 | ||||||||
| Insurance - 6.2% | AON Corp., 8.205%, 1/01/27 (d) | 18,000 | 11,320,128 | |||||
| Ace Capital Trust II, 9.70%, 4/01/30 (d) | 17,000 | 13,808,335 | ||||||
| W.R. Berkley Capital Trust II, 6.75%, 7/26/45 | 4,268 | 3,401,050 | ||||||
| 28,529,513 | ||||||||
| Thrifts & Mortgage | Countrywide Financial Corp., 6.75%, 4/01/33 | 8,875 | 4,243,914 | |||||
| Finance - 0.9% | ||||||||
| Total Trust Preferreds - 15.3% | 70,899,859 | |||||||
| Total Preferred Securities - 90.8% | 421,219,161 | |||||||
| Common Stocks | Shares | |||||||
| Aerospace & Defense - 0.5% | General Dynamics Corp. | 2,800 | 158,844 | |||||
| Honeywell International, Inc. | 6,000 | 196,860 | ||||||
| Lockheed Martin Corp. | 13,500 | 1,107,540 | ||||||
| Northrop Grumman Corp. | 18,200 | 875,784 | ||||||
| 2,339,028 | ||||||||
3
| BlackRock Preferred and Equity Advantage Trust | ||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||
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| Industry | Common Stocks | Shares | Value | |||
| Air Freight & Logistics - 0.3% | United Parcel Service, Inc. Class B | 34,800 | $ 1,478,652 | |||
| Auto Components - 0.0% | Johnson Controls, Inc. | 12,200 | 152,622 | |||
| Beverages - 0.7% | The Coca-Cola Co. | 55,300 | 2,362,416 | |||
| PepsiCo, Inc. | 17,800 | 894,094 | ||||
| 3,256,510 | ||||||
| Biotechnology - 0.8% | Amgen, Inc. (g) | 22,500 | 1,234,125 | |||
| Biogen Idec, Inc. (g) | 8,200 | 398,930 | ||||
| Celgene Corp. (g) | 11,500 | 608,925 | ||||
| Genzyme Corp. (g) | 5,400 | 372,168 | ||||
| Gilead Sciences, Inc. (g) | 23,200 | 1,177,864 | ||||
| 3,792,012 | ||||||
| Building Products - 0.0% | Masco Corp. | 29,800 | 233,036 | |||
| Capital Markets - 0.5% | The Goldman Sachs Group, Inc. | 12,220 | 986,521 | |||
| Morgan Stanley | 33,400 | 675,682 | ||||
| T. Rowe Price Group, Inc. | 20,900 | 576,422 | ||||
| 2,238,625 | ||||||
| Chemicals - 0.6% | Air Products & Chemicals, Inc. | 3,200 | 160,960 | |||
| The Dow Chemical Co. | 54,300 | 629,337 | ||||
| E.I. du Pont de Nemours & Co. | 32,800 | 753,088 | ||||
| Monsanto Co. | 9,500 | 722,570 | ||||
| PPG Industries, Inc. | 9,100 | 341,978 | ||||
| 2,607,933 | ||||||
| Commercial Banks - 0.8% | BB&T Corp. | 50,000 | 989,500 | |||
| SunTrust Banks, Inc. | 32,100 | 393,546 | ||||
| U.S. Bancorp | 66,600 | 988,344 | ||||
| Wells Fargo & Co. | 64,200 | 1,213,380 | ||||
| 3,584,770 | ||||||
| Commercial Services & | Waste Management, Inc. | 38,700 | 1,207,053 | |||
| Supplies - 0.3% | ||||||
| Communications | Cisco Systems, Inc. (g) | 87,800 | 1,314,366 | |||
| Equipment- 0.7% | Corning, Inc. | 28,500 | 288,135 | |||
| Motorola, Inc. | 114,500 | 507,235 | ||||
| QUALCOMM, Inc. | 29,100 | 1,005,405 | ||||
| 3,115,141 | ||||||
| Computers & Peripherals - | Apple, Inc. (g) | 24,600 | 2,217,198 | |||
| 1.3% | Dell, Inc. (g) | 49,200 | 467,400 | |||
| EMC Corp. (g) | 83,100 | 917,424 | ||||
| Hewlett-Packard Co. | 24,400 | 847,900 | ||||
| International Business Machines Corp. | 16,600 | 1,521,390 | ||||
| 5,971,312 | ||||||
| Diversified Financial | Bank of America Corp. | 121,200 | 797,496 | |||
| Services - 0.6% | JPMorgan Chase & Co. | 71,300 | 1,818,863 | |||
| 2,616,359 | ||||||
| Diversified Telecommunication | AT&T Inc. | 131,387 | 3,234,748 | |||
| Services - 1.1% | Embarq Corp. | 10,300 | 367,916 | |||
| Verizon Communications, Inc. | 53,700 | 1,604,019 | ||||
| 5,206,683 | ||||||
4
| BlackRock Preferred and Equity Advantage Trust | ||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||
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| Industry | Common Stocks | Shares | Value | |||
| Electric Utilities - 0.7% | American Electric Power Co., Inc. | 7,100 | $ 222,585 | |||
| FirstEnergy Corp. | 4,500 | 224,955 | ||||
| Progress Energy, Inc. | 30,300 | 1,173,216 | ||||
| The Southern Co. | 44,500 | 1,488,525 | ||||
| 3,109,281 | ||||||
| Electrical Equipment - 0.3% | Emerson Electric Co. | 29,300 | 958,110 | |||
| Rockwell Automation, Inc. | 18,000 | 468,720 | ||||
| 1,426,830 | ||||||
| Electronic Equipment & | Tyco Electronics Ltd. | 17,100 | 242,136 | |||
| Instruments - 0.0% | ||||||
| Energy Equipment & | Baker Hughes, Inc. | 5,600 | 186,592 | |||
| Services - 0.4% | National Oilwell Varco, Inc. (g) | 18,500 | 489,140 | |||
| Schlumberger Ltd. | 18,000 | 734,580 | ||||
| Smith International, Inc. | 17,718 | 402,199 | ||||
| 1,812,511 | ||||||
| Food & Staples Retailing - 0.9% | SYSCO Corp. | 44,200 | 985,218 | |||
| Wal-Mart Stores, Inc. | 60,400 | 2,846,048 | ||||
| Walgreen Co. | 20,900 | 572,869 | ||||
| 4,404,135 | ||||||
| Food Products - 0.4% | Kraft Foods, Inc. | 38,035 | 1,066,882 | |||
| Sara Lee Corp. | 73,900 | 741,217 | ||||
| 1,808,099 | ||||||
| Health Care Equipment & | Baxter International, Inc. | 6,300 | 369,495 | |||
| Supplies - 0.5% | Becton Dickinson & Co. | 13,100 | 951,977 | |||
| Boston Scientific Corp. (g) | 19,400 | 172,078 | ||||
| Covidien Ltd. | 17,100 | 655,614 | ||||
| Zimmer Holdings, Inc. (g) | 7,400 | 269,360 | ||||
| 2,418,524 | ||||||
| Health Care Providers & | Aetna, Inc. | 7,800 | 241,800 | |||
| Services - 0.5% | Express Scripts, Inc. (g) | 12,900 | 693,504 | |||
| Medco Health Solutions, Inc. (g) | 14,200 | 638,006 | ||||
| WellPoint, Inc. (g) | 14,600 | 605,170 | ||||
| 2,178,480 | ||||||
| Hotels, Restaurants & | Carnival Corp. | 37,100 | 674,849 | |||
| Leisure - 0.6% | McDonald's Corp. | 37,300 | 2,164,146 | |||
| 2,838,995 | ||||||
| Household Durables - 0.4% | Fortune Brands, Inc. | 12,300 | 393,600 | |||
| KB Home | 53,700 | 572,979 | ||||
| Leggett & Platt, Inc. | 52,200 | 651,978 | ||||
| Whirlpool Corp. | 10,400 | 347,672 | ||||
| 1,966,229 | ||||||
| Household Products - 0.7% | The Procter & Gamble Co. | 57,200 | 3,117,400 | |||
| IT Services - 0.2% | Automatic Data Processing, Inc. | 22,000 | 799,260 | |||
| Cognizant Technology Solutions Corp. (g) | 10,900 | 204,157 | ||||
| 1,003,417 | ||||||
5
| BlackRock Preferred and Equity Advantage Trust | ||||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||||
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| Industry | Common Stocks | Shares | Value | |||||
| Industrial Conglomerates - | 3M Co. | 27,200 | $ 1,463,088 | |||||
| 0.9% | General Electric Co. | 217,000 | 2,632,210 | |||||
| 4,095,298 | ||||||||
| Insurance - 0.7% | The Allstate Corp. | 28,400 | 615,428 | |||||
| American International Group, Inc. (e) | 49,700 | 63,616 | ||||||
| Lincoln National Corp. | 27,000 | 408,510 | ||||||
| Marsh & McLennan Cos., Inc. | 40,900 | 790,597 | ||||||
| The Travelers Cos., Inc. | 35,300 | 1,363,992 | ||||||
| 3,242,143 | ||||||||
| Internet & Catalog Retail - 0.2% | Amazon.com, Inc. (g) | 15,300 | 899,946 | |||||
| Internet Software & | eBay, Inc. (g) | 52,000 | 625,040 | |||||
| Services - 0.5% | Google, Inc. Class A (g) | 3,840 | 1,299,955 | |||||
| Yahoo! Inc. (g) | 31,800 | 373,014 | ||||||
| 2,298,009 | ||||||||
| Leisure Equipment & | Eastman Kodak Co. | 35,600 | 161,268 | |||||
| Products - 0.2% | Mattel, Inc. | 45,600 | 647,064 | |||||
| 808,332 | ||||||||
| Life Sciences Tools & | Thermo Fisher Scientific, Inc. (g) | 8,600 | 308,998 | |||||
| Services - 0.1% | ||||||||
| Machinery - 0.3% | Caterpillar, Inc. | 23,600 | 728,060 | |||||
| Cummins, Inc. | 13,900 | 333,322 | ||||||
| Deere & Co. | 9,300 | 323,082 | ||||||
| 1,384,464 | ||||||||
| Media - 0.2% | CBS Corp. Class B | 47,700 | 272,844 | |||||
| The DIRECTV Group, Inc. (g) | 25,000 | 547,500 | ||||||
| 820,344 | ||||||||
| Metals & Mining - 0.1% | Alcoa, Inc. | 16,900 | 131,651 | |||||
| Freeport-McMoRan Copper & Gold, Inc. Class B | 14,500 | 364,530 | ||||||
| 496,181 | ||||||||
| Multi-Utilities - 0.9% | Ameren Corp. | 20,600 | 684,950 | |||||
| Consolidated Edison, Inc. | 23,100 | 941,325 | ||||||
| Dominion Resources, Inc. | 7,200 | 253,296 | ||||||
| Public Service Enterprise Group, Inc. | 35,000 | 1,104,950 | ||||||
| Xcel Energy, Inc. | 58,800 | 1,085,448 | ||||||
| 4,069,969 | ||||||||
| Oil, Gas & Consumable | Anadarko Petroleum Corp. | 16,600 | 609,884 | |||||
| Fuels - 3.8% | Apache Corp. | 6,100 | 457,500 | |||||
| Chevron Corp. | 49,800 | 3,511,896 | ||||||
| ConocoPhillips | 37,400 | 1,777,622 | ||||||
| Devon Energy Corp. | 7,500 | 462,000 | ||||||
| EOG Resources, Inc. | 2,500 | 169,425 | ||||||
| Exxon Mobil Corp. | 91,300 | 6,982,624 | ||||||
| Hess Corp. | 13,100 | 728,491 | ||||||
| Massey Energy Co. | 17,500 | 265,650 | ||||||
| Peabody Energy Corp. | 20,400 | 510,000 | ||||||
| Southwestern Energy Co. (g) | 27,900 | 883,035 | ||||||
6
| BlackRock Preferred and Equity Advantage Trust | ||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||
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|
| |||||
| Industry | Common Stocks | Shares | Value | |||
| Spectra Energy Corp. | 11,500 | $ 166,865 | ||||
| XTO Energy, Inc. | 27,900 | 1,034,811 | ||||
| 17,559,803 | ||||||
| Paper & Forest Products - | International Paper Co. | 37,000 | 337,440 | |||
| 0.2% | Weyerhaeuser Co. | 22,600 | 617,884 | |||
| 955,324 | ||||||
| Pharmaceuticals - 2.8% | Abbott Laboratories | 16,900 | 936,936 | |||
| Bristol-Myers Squibb Co. | 88,700 | 1,899,067 | ||||
| Eli Lilly & Co. | 34,200 | 1,259,244 | ||||
| Johnson & Johnson | 63,400 | 3,657,546 | ||||
| Merck & Co., Inc. | 61,300 | 1,750,115 | ||||
| Pfizer, Inc. (e) | 176,500 | 2,573,370 | ||||
| Schering-Plough Corp. | 42,900 | 753,324 | ||||
| Wyeth | 8,000 | 343,760 | ||||
| 13,173,362 | ||||||
| Real Estate Investment Trusts | Developers Diversified Realty Corp. | 2,700 | 12,960 | |||
| (REITs) - 0.3% | Plum Creek Timber Co., Inc. | 27,800 | 855,406 | |||
| Vornado Realty Trust | 13,500 | 685,935 | ||||
| 1,554,301 | ||||||
| Road & Rail - 0.0% | Norfolk Southern Corp. | 5,900 | 226,324 | |||
| Semiconductors & | Applied Materials, Inc. | 17,400 | 163,038 | |||
| Semiconductor | Intel Corp. | 110,300 | 1,422,870 | |||
| Equipment - 0.8% | Linear Technology Corp. | 29,200 | 683,864 | |||
| Microchip Technology, Inc. | 34,100 | 646,877 | ||||
| National Semiconductor Corp. | 31,500 | 319,410 | ||||
| Texas Instruments, Inc. | 30,400 | 454,480 | ||||
| 3,690,539 | ||||||
| Software - 0.9% | Autodesk, Inc. (g) | 25,200 | 417,312 | |||
| Electronic Arts, Inc. (g) | 10,000 | 154,400 | ||||
| Microsoft Corp. | 151,400 | 2,588,940 | ||||
| Oracle Corp. (g) | 69,300 | 1,166,319 | ||||
| 4,326,971 | ||||||
| Specialty Retail - 0.4% | Home Depot, Inc. | 47,000 | 1,011,910 | |||
| Staples, Inc. | 48,100 | 766,714 | ||||
| 1,778,624 | ||||||
| Textiles, Apparel & Luxury | VF Corp. | 15,200 | 851,504 | |||
| Goods - 0.2% | ||||||
| Tobacco - 0.7% | Altria Group, Inc. | 94,900 | 1,569,646 | |||
| Philip Morris International, Inc. | 19,400 | 720,710 | ||||
| Reynolds American, Inc. | 21,400 | 817,052 | ||||
| 3,107,408 | ||||||
| Wireless Telecommunication | Sprint Nextel Corp. (g) | 142,400 | 346,032 | |||
| Services - 0.1% | ||||||
| Total Common Stocks - 28.1% | 130,119,649 | |||||
7
| BlackRock Preferred and Equity Advantage Trust | ||||||||
| Schedule of Investments January 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||||||
|
|
| |||||||
| Par | ||||||||
| Industry | Corporate Bonds | (000) | Value | |||||
| Beverages - 0.9% | Anheuser-Busch InBev Worldwide, Inc., 8.20%, | |||||||
| 1/15/39 (a) | $ 4,400 | $ 4,433,959 | ||||||
| Capital Markets - 0.0% | Lehman Brothers Holdings, Inc., 3.95%, 11/10/09 (g)(h) | 105 | 14,700 | |||||
| Lehman Brothers Holdings, Inc., 4.375%, | ||||||||
| 11/30/10 (g)(h) | 325 | 45,500 | ||||||
| 60,200 | ||||||||
| Commercial Banks - 0.5% | Wachovia Corp., 5.50%, 5/01/13 | 2,200 | 2,267,459 | |||||
| Computers & Peripherals - 1.1% | International Business Machines Corp., 8%, | |||||||
| 10/15/38 | 4,000 | 5,016,552 | ||||||
| Diversified Financial | ING Groep NV, 5.775% (b)(c)(d) | 10,000 | 3,849,000 | |||||
| Services - 0.9% | Stan IV Ltd., 4.821%, 7/20/11 (c)(i) | 283 | 183,950 | |||||
| 4,032,950 | ||||||||
| Electric Utilities - 1.6% | PPL Energy Supply LLC, 7%, 7/15/46 | 7,200 | 7,377,800 | |||||
| Insurance - 1.1% | QBE Insurance Group Ltd., 9.75%, 3/14/14 (a) | 4,973 | 4,930,536 | |||||
| Media - 9.1% | Comcast Corp., 6.625%, 5/15/56 | 48,750 | 42,279,895 | |||||
| Metals & Mining - 0.2% | Aleris International, Inc., 10%, 12/15/16 (g) | 5,000 | 812,500 | |||||
| Oil, Gas & Consumable | Nexen, Inc., 7.35%, 11/01/43 | 3,000 | 2,303,381 | |||||
| Fuels - 0.5% | ||||||||
| Paper & Forest | International Paper Co., 8.70%, 6/15/38 (e) | 3,100 | 2,157,603 | |||||
| Products - 0.4% | ||||||||
| Total Corporate Bonds - 16.3% | 75,672,835 | |||||||
| Exchange-Traded Funds | Shares | |||||||
| UltraShort Real Estate ProShares | 150,000 | 8,898,000 | ||||||
| Total Exchange-Traded Funds - 1.9% | 8,898,000 | |||||||
| Total Long-Term Investments | ||||||||
| (Cost - $1,096,941,861) - 137.1% | 635,909,645 | |||||||
| Short-Term Securities | ||||||||
| Money Market Fund - 26.4% | SSgA Money Market Fund, 0.75%, 12/31/30 | 122,300,000 | 122,300,000 | |||||
| Total Short-Term Securities | ||||||||
| (Cost - $122,300,000) - 26.4% | 122,300,000 | |||||||
| Total Investments Before Options Written | ||||||||
| (Cost - $1,219,241,861*) - 163.5% | 758,209,645 | |||||||
| Options Written | Contracts | |||||||
| Exchange Traded Call Options | S&P 500 Index, expiring February 2009 at $ 85.50 | 80 | (140,000) | |||||
| S&P 500 Index, expiring February 2009 at $ 87.50 | 980 | (1,048,600) | ||||||
| Total Options Written | ||||||||
| (Premiums Received - $2,859,193) - (0.3)% | (1,188,600) | |||||||
| Total Investments, Net of Options Written - 163.2% | 757,021,045 | |||||||
| Liabilities in Excess of Other Assets - (13.4)% | (62,203,180) | |||||||
| Preferred Shares, at Redemption Value - (49.8)% | (231,063,916) | |||||||
| Net Assets Applicable to Common Shares - 100.0% | $ 463,753,949 | |||||||
8
BlackRock Preferred and Equity Advantage Trust
Schedule of Investments January 31, 2009 (Unaudited)
* The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009,
as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 1,219,054,466 | |
| Gross unrealized appreciation | $ 6,426,456 | |
| Gross unrealized depreciation | (467,271,277) | |
| Net unrealized depreciation | $ (460,844,821) |
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration to qualified institutional investors.
(b) Security is perpetual in nature and has no stated maturity date. In certain instances, a final maturity date may be
extended and/or the final payment may be deferred at the issuer's option for a specified time without default.
(c) Variable rate security. Rate shown is as of report date.
(d) All or a portion of security held as collateral in connection with open reverse repurchase agreements.
(e) All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(f) Convertible security.
(g) Non-income producing security.
(h) Issuer filed for bankruptcy and/or is in default of interest payments.
(i) Security is valued in accordance with the Trust's fair valuation policy.
| • | Financial futures contracts purchased as of January 31, 2009 were as follows: | |||||||||||||||
| Unrealized | ||||||||||||||||
| Expiration | Face | Appreciation | ||||||||||||||
| Contracts | Issue | Date | Value | (Depreciation) | ||||||||||||
| 1,050 | 10-Year US | March | ||||||||||||||
| Treasury Bond | 2009 | $ 128,168,587 | $ 636,882 | |||||||||||||
| 361 | S&P EMINI | March | ||||||||||||||
| 2009 | $ 15,394,563 | (548,438) | ||||||||||||||
| Total | $ 88,444 | |||||||||||||||
| • | Reverse repurchase agreements outstanding as of January 31, 2009 were as follows: | |||||||||||||||
| Interest | Trade | Maturity | Net Closing | Face | ||||||||||||
| Counterparty | Rate | Date | Date | Amount | Amount | |||||||||||
| Barclays Bank Plc | 2.970% | 12/02/08 | 5/15/09 | $ 6,723,520 | $ 6,633,765 | |||||||||||
| Barclays Bank Plc | 2.970% | 12/03/08 | 5/15/09 | 20,146,449 | 19,880,743 | |||||||||||
| Barclays Bank Plc | 2.943% | 12/05/08 | 5/15/09 | 13,473,913 | 13,302,125 | |||||||||||
| Barclays Bank Plc | 2.940% | 12/05/08 | 5/15/09 | 21,424,971 | 21,153,745 | |||||||||||
| Barclays Bank Plc | 2.970% | 12/05/08 | 5/15/09 | 2,127,200 | 2,100,000 | |||||||||||
| Barclays Bank Plc | 2.943% | 1/09/09 | 5/15/09 | 4,232,101 | 4,188,960 | |||||||||||
| Barclays Bank Plc | 2.970% | 1/13/09 | 5/15/09 | 3,905,810 | 3,867,521 | |||||||||||
| Total | $ 72,033,964 | $ 71,126,859 | ||||||||||||||
9
| BlackRock Preferred and Equity Advantage Trust Schedule of Investments January 31, 2009 (Unaudited) |
| Pay | Notional | Unrealized | ||||||||
| Fixed | Amount | Appreciation | ||||||||
| Issuer | Rate | Counterparty | Expiration | (000) | (Depreciation) | |||||
| Altria | 1.03% | Deutsche | December | |||||||
| Group, Inc. | Bank AG | 2013 | $ 9,000 | $ 51,129 | ||||||
| American Express | December | |||||||||
| Co. | 4.05% | Citibank NA | 2013 | $ 7,000 | (333,494) | |||||
| Carnival | Sachs Group, | December | ||||||||
| Corp. | 2.35% | Inc. | 2013 | $ 4,000 | 196,844 | |||||
| Total | $ (85,521) |
• Credit default swaps on single-name issues - sold protection outstanding as of January 31, 2009 were as follows:
| Receive | Notional | |||||||||||
| Fixed | Amount | Unrealized | ||||||||||
| Issuer | Rate | Counterparty | Expiration | Credit Rating1 | (000)2 | Depreciation | ||||||
| Philip Morris | Deutsche | December | ||||||||||
| International, Inc. | 1.73% | Bank AG | 2013 | AA | $ 9,000 | $ (38,880) |
1 Using the Standard and Poor's ratings of the issuer.
2 The maximum potential amount the Trust may pay should a negative credit event take a place as defined under the terms of the agreement.
| For Trust compliance purposes, the Trust'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 Trust management. This definition may not apply for purposes of this report, which may combine industry sub- classifications for reporting ease. | ||
| Effective November 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows: | ||
| Level 1 - price quotations in active markets/exchanges for identical securities | ||
| Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs) | ||
| Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust's own assumption used in determining the fair value of investments) | ||
| The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report. | ||
10
| BlackRock Preferred and Equity Advantage Trust Schedule of Investments January 31, 2009 (Unaudited) The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund's investments: |
| Valuation | Investments in | Other Financial | ||||||||
| Inputs | Securities | Instruments* | ||||||||
| Assets | Liabilities | Assets | Liabilities | |||||||
| Level 1 | $ 404,735,669 | - | $ 636,882 | $ (1,737,038) | ||||||
| Level 2 | 349,157,726 | $ (71,126,859) | 247,973 | (333,494) | ||||||
| Level 3 | 4,316,250 | - | - | (38,880) | ||||||
| Total | $ 758,209,645 | $ (71,126,859) | $ 884,855 | $ (2,109,412) | ||||||
* Other financial instruments are futures, swaps and options. Futures and swaps are valued at the unrealized
appreciation/depreciation on the instrument and options are shown at market value.
| The following is a reconciliation of investments for unobservable inputs | ||||
| (Level 3) were used in determining fair value: | ||||
| Investments in | Other Financial | |||
| Securities | Instruments* | |||
| Balance, as of November 1, 2008 | $ 268,850 | - | ||
| Accrued discounts/premiums | (181) | - | ||
| Realized gain (loss) | - | - | ||
| Change in unrealized appreciation (depreciation) | (13,503,474) | $ (73,413) | ||
| Net purchases (sales) | - | - | ||
| Net transfers in/out of Level 3 | 17,551,055 | 34,533 | ||
| Balance, as of January 31, 2009 | $ 4,316,250 | $ (38,880) | ||
* Other financial instruments are swaps contracts. Swaps are valued at the unrealized
appreciation/depreciation on the instrument.
11
| Item 2 – Controls and Procedures 2(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”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended. 2(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) 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 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. BlackRock Preferred and Equity Advantage Trust By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer of BlackRock Preferred and Equity Advantage Trust Date: March 25, 2009 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/ Donald C. Burke Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Preferred and Equity Advantage Trust Date: March 25, 2009 By: /s/ Neal J. Andrews Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock Preferred and Equity Advantage Trust Date: March 25, 2009 |