Company: BDJ
Filing Date: 2025-09-04
Form Type: N-CSRS
Source: 0001193125-25-196068
Chunk: 26

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-09-04
Form: N-CSRS
Chunk 26
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 of the media services provider continued to rise due to rapid subscriber growth, strong revenue gains, sustained cost control, and bullish investor sentiment on its long-term profitability. An out-of-benchmark holding in SK Hynix Co. Ltd. was also a key contributor. The semiconductor stock traded up thanks to a favorable industry outlook and surging demand for high-bandwidth memory chips powered by AI infrastructure buildouts. An out-of-benchmark position in NVIDIA, Inc. further contributed. The stock rallied to an all-time high on the strength of record demand for AI chips. On the other hand, an out-of-benchmark position in the semiconductor manufacturing company Astera Labs, Inc. was the largest detractor. The stock’s valuation contracted as profit-taking and volatility in recent initial public offerings led to a pullback. An out-of-benchmark position in Tesla, Inc., which came under pressure from slowing sales, was an additional contributor. The Trust was also hurt by its underweight position in the cloud services provider Cloudflare, Inc. The stock rose on the strength of robust financial performance that included accelerated revenue and customer growth, major enterprise contract wins, and upbeat forward guidance. 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 contributed to relative performance. 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. The investment adviser increased the Trust’s allocation to the internet sub-sector. It reduced the portfolio’s weightings in the hardware, services, software, semiconductors, and content and infrastructure sub-sectors. Describe portfolio positioning at period end. As capacity increased, the investment adviser sought opportunities to harvest the illiquidity premium by adding holdings in private investments. As of June 30, 2025, the Trust held 35 private investments, comprising 34.2% of total assets for a total commitment of approximately $526 million. The Trust held 32% of net asset value in semiconductors, 28% in software, 11% in hardware, 10% in services, 11% in internet, 9% in other areas of the technology sector. These industry weightings were the result of bottom-up stock selection. As of June 30, 2025, the Trust had in place an option overwriting program whereby 10.4% of the underlying equities were overwritten with call options on individual stocks. These call options