Company: BDJ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049575
Chunk: 39

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 39
---
4, was an additional detractor. The shares rose due to a series of earnings beats and expectations that the company will be a top beneficiary of the growth in AI. An overweight position in MongoDB, Inc. was an additional detractor of note. The infrastructure software company reported weak earnings and lowered its guidance due to a lack of momentum in enterprise IT spending. The Trust used an options overlay strategy in which calls were written on a portion of the portfolio’s holdings. The Trust’s options overlay strategy detracted from 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. 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 rotated its position in the semiconductors sub-sector throughout the course of the year. It added to companies that stood to benefit from increased AI-related capital expenditures, and it reduced holdings in those vulnerable to weakness in their end markets, including autos. The Trust also added to the software sub-sector to position the portfolio for a broadening of the AI rally beyond companies benefiting from demand from AI data centers. It trimmed select holdings in the internet sector, as advertising demand remained muted. From a regional perspective, the Trust further reduced its allocation to China based on caution about the pace of the country’s economic recovery. The Trust added to Japanese stocks where it identified both attractive fundamentals and near-term catalysts. The Trust also added two new investments in private technology companies. Describe portfolio positioning at period end. The Trust held 33% of net asset value in semiconductors, 29% in software, 15% in hardware, 14% in internet, 6% in services, 2% in content & infrastructure, and 1% in new industries. These industry weightings were the result of bottom-up stock selection. As of December 31, 2024, the Trust had in place an option overwriting program whereby 26.9% 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 5.9% out of the money) and for maturities averaging 50 days.

38 2024 BlackRock Annual Report to Shareholders

Trust Summary as of December 31, 2024 (continued) BlackRock Science and Technology Trust