Company: BDJ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049575
Chunk: 42

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 42
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 about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com . The following discussion relates to the Trust’s relative performance based on NAV: What factors influenced performance? The energy equipment manufacturer GE Vernova, Inc. was the top contributor to the Trust’s relative performance in 2024. The company reported record financial results behind improved profitability, strategic capital allocation initiatives, and strong demand for its energy transition technologies. The American midstream energy firm Williams Companies also contributed. The company’s status as a leading natural gas infrastructure operator in North America positioned it to capitalize on growing energy demand. In addition, Williams ’ fee-based business model insulated it from commodity price fluctuations during the reporting period. Another midstream energy infrastructure provider, Targa Resources Corp., also performed well due to rising natural gas demand. Trane Technologies PLC, a manufacturer of heating and ventilation products, was another top contributor. The company benefitted from increasing global demand for energy-efficient HVAC systems, as well as decarbonization efforts supported by government policies in the United States and Europe. On the negative side, the multinational energy company RWE AG was the largest detractor from relative performance. A significant drop in European wholesale electricity prices, driven by lower natural gas costs and increased renewable energy output, negatively impacted RWE ’ s revenue. A position in the European wind turbine manufacturer Vestas Wind Systems A/S also hindered performance. The wind energy sector faced challenges from geopolitical uncertainty, trade volatility, and competition from Chinese manufacturers offering lower-cost turbines. These factors created headwinds for Vestas as it navigated an increasingly competitive market. EDP Renováveis SA, a European renewable energy company, was another detractor of note. Weak financial performance, valuation concerns, and broader challenges in the renewable energy sector overshadowed the company’s long-term growth prospects and led to a sharp decrease in investor confidence. 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 in the 12-month period. 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 initiated positions in companies that offer energy-efficient solutions for reshoring and grid-related projects, as well as those involved in enhancing energy efficiency in the