Company: BDJ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049575
Chunk: 7

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 7
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 TechnipFMC PLC, which reported better-than-expected earnings driven by strong demand, and Saipem SpA , which benefited from continued contract wins. The Trust was also helped by its underweight position in the underperforming refining subsector. At the stock level, overweights in the pipeline operators Williams Companies, Targa Resources Corp. and TC Energy Corp. were notable contributors. The stocks rose strongly based on higher natural gas prices and expectations for increased power demand in the United States. 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 contributed negatively to relative performance for the 12-month period. An overweight position in the exploration and production company Kosmos Energy Ltd., which reported lower production growth expectations for a key asset, was a notable detractor. An overweight in France-based TotalEnergies SE also detracted, as European integrated companies lagged their U.S. peers. In addition, zero weightings in the U.S. midstream companies Kinder Morgan, Inc. and Oneok Inc. hurt results given the sector’s relative strength. 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 refining companies given lower margins in the sector. It also closed positions in Canadian integrated oil company Cenovus Energy INC, European integrated oil company BP PLC, and U.S. oilfield service company Schlumberger NV. On the other hand, added a position in Gaztransport & Technigaz SA, a specialist manufacturer of lining for LNG ships. It also added exposure to U.S. shale producers and pipeline distribution companies. Describe portfolio positioning at period end. The investment adviser continued to look for opportunities across the global energy sector. Key themes included a bias towards select North American energy companies and those poised to capitalize on higher natural gas volumes and growth in U.S. energy infrastructure and. The investment adviser maintained a cautious view toward the refining sub-sector, and it retained select holdings in oilfield services and integrated energy companies. As of December 31, 2024, the Trust had in place an option overwriting program whereby 31.6% of the underlying equities were overwritten with call options on individual stocks. These call