UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No.2)*
Blackrock Preferred Income Strategies.
(Name of Issuer)
Common Stock
(Title and Class of Securities)
09255H105
(CUSIP Number)
December 31, 2008
(Date of Event which Requires Filing of this
Statement)
Check the appropriate box to designate the rule pursuant to which
this
Schedule is filed:
[X] Rule 13d-1(b)
[_] Rule 13d-1(c)
[_] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a
reporting person's
initial filing on this form with respect to the subject class of
securities, and
for any subsequent amendment containing information which would
alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall
not be deemed
to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that
section of the Act
but shall be subject to all other provisions of the Act (however,
see the
Notes).
CUSIP No. 09255H105
Page 2
1 NAMES OF REPORTING PERSONS
Spectrum Asset Management, Inc
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)
(b)
3 SEC USE ONLY
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
NUMBER OF 5 SOLE VOTING POWER 0
SHARES
BENEFICIALLY 6 SHARED VOTING POWER
2,967,300
OWNED BY
EACH 7 SOLE DISPOSITIVE POWER 0
REPORTING
PERSON WITH 8 SHARED DISPOSITIVE POWER
2,967,300
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,967,300
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.31
12 TYPE OF REPORTING PERSON (See Instructions)
IA
CUSIP No. 09255H105 Page 3
1 NAMES OF REPORTING PERSONS
Principal Financial Group, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)
(b)
3 SEC USE ONLY
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF 5 SOLE VOTING POWER 0
SHARES
BENEFICIALLY 6 SHARED VOTING POWER
2,967,300
OWNED BY
EACH 7 SOLE DISPOSITIVE POWER 0
REPORTING
PERSON WITH 8 SHARED DISPOSITIVE POWER
2,967,300
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,967,300
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.31
12 TYPE OF REPORTING PERSON (See Instructions)
HC
CUSIP No. 09255H105
Page 4
Item 1(a). Name of Issuer:
Blackrock Preferred Income Strategies.
Item 1(b). Address of Issuer's Principal Executive Offices:
P O Box 9011
Princeton, NJ 08543-9011
Item 2(a). Name of Person Filing:
Spectrum Asset Management, Inc.
Principal Financial Group, Inc.
Item 2(b). Address of Principal Business Office, or, if None,
Residence:
Spectrum Asset Management, Inc.
2 High Ridge Park
Stamford, CT 06905
Principal Financial Group, Inc.
711 High Street
Des Moines, IA 50392-0088
Item 2(c). Citizenship:
Spectrum Asset Management, Inc. - State of Connecticut
Principal Financial Group, Inc. - State of Delaware
Item 2(d). Title of Class of Securities:
Common Stock
Item 2(e). CUSIP Numbers:
09255H105
Item 3. If this statement is filed pursuant to section 240.13d-
1(b) or 240.13d
2(b) or (c), check whether the person filing is a:
(a) [X] Broker or dealer registered under section 15 of the
Securities
Exchange Act of 1934.
(e) [X] An investment adviser in accordance with section
240.13d
1(b)(1)(ii)(E)
(g) [X] A parent holding company or control person in
accordance with
section 240.13d-1(b)(1)(ii)(G)
Item 4. Ownership:
(a) Amount Beneficially Owned
2,967,300 Shares Common Stock presently held by Spectrum
Asset Management, Inc.
2,967,300 Shares Common Stock presently held by Principal
Financial Group, Inc.
CUSIP No. 09255H105
Page 5
(b) Percent of Class
7.31 Spectrum Asset Management, Inc.
7.31 Principal Financial Group, Inc.
(c) Number of shares as to which the person has:
(i) Sole Power to Vote or Direct the Vote
0 Spectrum Asset Management, Inc.
0 Principal Financial Group, Inc.
(ii) Shared Power to Vote or Direct the Vote
2,967,300 Shares Common Stock presently held by
Spectrum Asset Management, Inc.
2,967,300 Shares Common Stock presently held by
Principal Financial Group, Inc.
(iii) Sole Power to Dispose or to Direct the Disposition
of
0 Spectrum Asset Management, Inc.
0 Principal Financial Group, Inc.
(iv) Shared Power to Dispose or to Direct the
Disposition of
2,967,300 Shares Common Stock presently held by
Spectrum Asset Management, Inc.
2,967,300 Shares Common Stock presently held by
Principal Financial Group, Inc.
Item 5. Ownership of Five Percent or Less of a Class:
[]
Item 6. Ownership of More than Five Percent on Behalf of Another
Person
Persons other than the reporting persons have a right to
receive or the
power to direct the receipt of dividends from or the proceeds
from the sale
of such securities. The interest of no such person having
such an interest
relates to more than five percent of the class.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the
Security Being Reported on By the Parent Holding Company
See Exhibit attached
CUSIP No. 09255H105
Page 6
Item 8. Identification and Classification of Members of the Group
N/A
Item 9. Notice of Dissolution of Group
N/A
Item 10(a). Certification
By signing below I certify, to the best of my knowledge and
belief, the
securities referred to above were not acquired and are held
in the ordinary
course of business and were not acquired and are not held for
the purpose
of or with the effect of changing or influencing the control
of the issuer
of the securities and were not acquired and are not held in
connection with
or as a participant in any transaction having that purpose or
effect.
Signature
After reasonable inquiry and to the best of my knowledge and
belief, I certify
that the information set forth in this statement is true, complete
and correct.
Spectrum Asset Management, Inc.
By /s/ Mark A. Lieb
Mark A. Lieb, Chief Financial Officer
Principal Financial Group, Inc.
By /s/ Joyce N. Hoffman
Joyce N. Hoffman, Senior Vice President and Corporate Secretary
Dated February 19, 2009
EXHIBIT 99.1
Spectrum Asset Management, Inc.
Item 3 Classification:
(a) Broker or dealer registered under Section 15 of the Securities
Exchange Act of 1934
(e) Investment Adviser registered under Section 203 of the
Investment Advisers
Act of 1940
Principal Financial Group, Inc.
Item 3 Classification:
(g) A parent holding company or control person in accordance with
section 240.13d-1(b)(1)(ii)(G)