Company: BSTZ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049659
Chunk: 17

Company: BlackRock Science & Technology Term Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 17
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 pullback after recent strong performance as clinical trial results for weight loss drug CagriSema failed to represent an advance over Eli Lilly’s existing entry. While this outcome has hurt the optics around Novo Nordisk’s competitive position versus Eli-Lilly, the two companies are expected to dominate the obesity treatment market for the foreseeable future, and additional CagriSema data is expected early in 2025. LVMH Moët Hennessy Louis Vuitton SE, the luxury brand company, faced a difficult year due to macroeconomic headwinds, shifts in consumer behavior, and indirect exposure to China. The global luxury consumer market remains weak, and given LVMH’s dependence on China the weakness of that economy has impacted the company ’ s performance. Despite uncertainty around when consumer confidence will improve, LVMH is a fundamentally strong business poised for long-term growth. Walmart de Mexico y Centroamérica (“Walmex”) encountered operational challenges during the period, including rising costs, sales performance issues and unfavorable market conditions. The company’s transition to an omni-channel player has progressed more slowly than anticipated, diminishing the valuation upside that had been part of the investment thesis. In addition, Walmex faces regulatory risks under Mexico’s antitrust laws. Due to the stock’s poor performance and a subsequent reevaluation of the position, the Trust exited the position. The Trust utilized an options overlay strategy in which calls are written on a portion of the portfolio’s holdings. The Trust’s options overlay strategy detracted from relative performance for the reporting period. The Trust’s practice of maintaining a specified level of monthly distributions did not have a material impact on the Trust’s investment strategy. Describe recent portfolio activity. During the period, the Trust reduced its exposure to the energy, healthcare, financials and materials sectors, while adding to communication services, information technology and consumer discretionary. Describe portfolio positioning at period end. At the end of the period, the Trust’s largest sector overweights were in industrials, information technology and communication services. Regionally, the majority of portfolio assets comprised securities listed in Europe, with particularly significant exposure in Europe excluding the United Kingdom.

16 2024 BlackRock Annual Report to Shareholders

Trust Summary as of December 31, 2024 (continued) BlackRock Enhanced International Dividend Trust (BGY) As of December 31, 2024, the Trust had in place an option overwriting program whereby 42% of the underlying equities were overwritten with call options on individual stocks. These call