Company: BSTZ
Filing Date: 2025-09-04
Form Type: N-CSRS
Source: 0001193125-25-196080
Chunk: 23

Company: BlackRock Science & Technology Term Trust
Filing Date: 2025-09-04
Form: N-CSRS
Chunk 23
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 performance. On the other hand, selection in healthcare equipment detracted. An underweight position in UnitedHealth Group, Inc. was the top contributor to performance at the individual holding level. The stock dropped as investors reacted to ongoing uncertainty about Medicare Advantage margin pressures and rising care utilization. An overweight in Boston Scientific Corp. was also a notable contributor. The medical device company’s stock rose on optimism driven by analyst upgrades, strong recent earnings, and higher full-year growth forecasts. An underweight in the pharmaceutical and biotechnology stock Merck & Co., Inc. further helped results.

18 2025 BlackRock Semi-Annual Report to Shareholders

Trust Summary as of June 30, 2025 (continued) BlackRock Health Sciences Trust (BME) At the individual security level, an underweight in CVS Corp. was the largest detractor. The company continued to benefit from better-than-expected prescription volumes and positive developments in its pharmacy benefit manager segment. Underweights in Johnson & Johnson, which rose on the strength of robust sales in its pharmaceutical division and easing litigation risk, and Eli Lilly & Co., which benefited from further encouraging data and demand for its weight-loss and diabetes drugs, also detracted. The Trust made use of options, principally writing call options on individual stocks, to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The option overlay strategy contributed to relative performance. 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. Describe recent portfolio activity. The Trust’s allocations to the healthcare providers and services and pharmaceuticals sub-sectors increased, while its weightings in the biotechnology and medical devices and supplies sub-sectors decreased. The Trust made an additional investment in a private technology company. Describe portfolio positioning at period end. The Trust held 38% of net asset value in the medical devices and supplies industry, 24% in biotechnology, 20% in pharmaceuticals, and 16% in healthcare providers and services. These industry weightings were a result of bottom-up stock selection. As of June 30, 2025, the Trust had in place an option overwriting program whereby 34.7% 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 6.5% out of the money) and for maturities averaging 53 days. The views expressed reflect