Company: BSTZ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049659
Chunk: 32

Company: BlackRock Science & Technology Term Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 32
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. The Trust’s options overlay strategy detracted from 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. 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 added to companies that are critical in the AI supply chain, including those in the semiconductors and software sub-sectors. It trimmed positions in select internet stocks in response to slowing demand. From a geographic perspective, the Trust further reduced its allocation to Asia due to the slow pace of the region’s economic recovery. On the other hand, it added to U.S. and European equities where it identified both attractive fundamentals and near-term catalysts. Describe portfolio positioning at period end. As of December 31, 2024, the Trust held 22 private investments, comprising 31.3% of total assets for a total commitment of approximately $527 million. The investment adviser continued to seek opportunities to harvest the illiquidity premium by taking advantage of the Trust’s closed-end structure to add holdings in private investments as capacity increased.

34 2024 BlackRock Annual Report to Shareholders

Trust Summary as of December 31, 2024 (continued)

BlackRock Science and Technology Term Trust (BSTZ)

The Trust held 32% of net asset value in semiconductors, 30% in software, 13% in hardware, 12% in services, 9% in internet, 3% in content & infrastructure, and 2% 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 19.1% 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 7.0% out of the money) and for maturities averaging 53 days. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Summary 35

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