Company: BDJ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049575
Chunk: 32

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 32
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 performed well throughout the reporting period due to rising demand from e-commerce growth, the increased usage of eco-friendly packaging solutions, and significant technological advancements in the space. An overweight position in the mining company Wheaton Precious Metals Corp., which benefited from rising gold and silver prices, also contributed. The lack of a position in the U.S. agriculture equipment company Deere & Co. detracted from relative performance. The stock outpaced the broader natural resources sector due in part to better-than-expected earnings and investor optimism about the company’s technological innovations. A zero weighting in the Canadian gold producer Agnico Eagle Mines Ltd. also weighed on results. The company benefitted from the rally in gold prices, and it demonstrated strong production and cost controls relative to its peers. Among stocks the Trust held, Marathon Petroleum Corp. and Glencore PLC were notable detractors. The Trust used an options overlay strategy in which calls were written on a portion of the portfolio’s holdings. This strategy contributed to results during the period. The Trust ’ s practice of maintaining a speciﬁed level of monthly distributions to shareholders did not have a material impact on the Trust ’ s investment strategy. The distribution policy resulted in return of capital for the period. Refer to the financial highlights and income tax information sections in this report for further information about the distributions. Describe recent portfolio activity. The Trust reduced its allocation to the energy sector from overweight to neutral, based on the view that the supply growth of oil was likely to match or exceed demand growth. The Trust moved to an overweight in the mining sector, partly on the view that sentiment toward China had likely bottomed. Describe portfolio positioning at period end. The portfolio had weightings of 37.5% in the mining sector, 33.5% in energy, and 25.1% in agriculture. The remaining 3.9% was held in cash. As of December 31, 2024, the Trust had in place an option overwriting program whereby 29.3% of the underlying equities were overwritten with call options on individual stocks. These call options were typically written at prices above the prevailing market prices (estimated to be 4.8% out of the money) and for maturities averaging 55 days. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.