BlackRock Enhanced Global Dividend Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-21729

Name of Fund:  BlackRock Enhanced Global Dividend Trust (BOE)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Enhanced

             Global Dividend Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2017

Date of reporting period: 12/31/2017


Item 1 – Report to Stockholders


DECEMBER 31, 2017

 

ANNUAL REPORT

  LOGO

 

BlackRock Energy and Resources Trust (BGR)

BlackRock Enhanced Capital and Income Fund, Inc. (CII)

BlackRock Enhanced Equity Dividend Trust (BDJ)

BlackRock Enhanced Global Dividend Trust (BOE)

BlackRock Enhanced International Dividend Trust (BGY)

BlackRock Health Sciences Trust (BME)

BlackRock Resources & Commodities Strategy Trust (BCX)

BlackRock Science and Technology Trust (BST)

BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended December 31, 2017, risk assets, such as stocks and high-yield bonds, continued to deliver strong performance. The equity market advanced, month after month, despite geopolitical uncertainty and relatively high valuations, while bond returns were constrained by higher interest rates.

Rising interest rates worked against high-quality assets with more interest rate sensitivity. Consequently, longer-term U.S. Treasuries posted modest returns, as rising energy prices, modest wage increases, and steady job growth led to expectations of higher inflation and interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries throughout the world experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together.

The Fed responded to these positive developments by increasing short-term interest rates three times and setting expectations for additional interest rate increases. The Fed also began reducing the vast balance sheet reserves that had accumulated in the wake of the financial crisis. In October 2017, the Fed reduced its $4.5 trillion balance sheet by only $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) both continued to expand their balance sheets despite nascent signs of sustained economic growth. The Eurozone and Japan are both approaching the limits of central banks’ ownership share of national debt, which is a structural pressure point that limits their capacity to deliver additional monetary stimulus. In October 2017, the ECB announced plans to cut the amount of its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus until the inflation rate rises to its target of 2%.

Emerging market growth also stabilized, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

While escalating tensions between the United States and North Korea and our nation’s divided politics are concerning, benign credit conditions, modest inflation, solid corporate earnings, and the positive outlook for growth in the world’s largest economies have kept markets relatively tranquil.

Rising consumer confidence and improving business sentiment are driving momentum for the U.S. economy. If the Fed maintains a measured pace of stimulus reduction, to the extent that inflation rises, it’s likely to be accompanied by rising real growth and higher wages. That could lead to a favorable combination of moderately higher inflation, steadily rising interest rates, and improving growth in 2018.

Further fueling optimism, Congress passed a sweeping tax reform bill in December 2017. The U.S. tax overhaul is likely to accentuate the reflationary themes already in place, including faster growth and rising interest rates. Changing the corporate tax rate to a flat 21% will create many winners and losers among high-and-low tax companies, while the windfall from lower taxes could boost business and consumer spending.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of December 31, 2017
     6-month   12-month

U.S. large cap equities
(S&P 500® Index)

  11.42%   21.83%

U.S. small cap equities
(Russell 2000® Index)

  9.20   14.65

International equities
(MSCI Europe, Australasia,
Far East Index)

  9.86   25.03

Emerging market equities
(MSCI Emerging Markets Index)

  15.92   37.28

3-month Treasury bills
(ICE BofAML 3-Month U.S. Treasury Bill Index)

  0.55   0.86

U.S. Treasury securities
(ICE BofAML 10-Year U.S. Treasury Index)

  (0.01)   2.07

U.S. investment grade bonds
(Bloomberg Barclays U.S.
Aggregate Bond Index)

  1.24   3.54

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  1.64   4.95

U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer
Capped Index)

  2.46   7.50
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Supplemental Information  (unaudited)

 

Section 19(a) Notices

BlackRock Energy and Resources Trust’s (BGR), BlackRock Enhanced Capital and Income Fund, Inc.’s (CII), BlackRock Enhanced Equity Dividend Trust’s (BDJ), BlackRock Global Dividend Trust’s (BOE), BlackRock Enhanced International Dividend Trust’s (BGY), BlackRock Health Sciences Trust’s (BME), BlackRock Resources & Commodities Strategy Trust’s (BCX), BlackRock Science and Technology Trust’s (BST) and BlackRock Utilities, Infrastructure & Power Opportunities Trust’s (BUI) (each, a “Trust” and collectively, the “Trusts”), amounts and sources of distributions reported are estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Trust’s investment experience during the fiscal year and may be subject to changes based on tax regulations. Each Trust will provide a Form 1099-DIV each calendar year that will tell you how to report these distributions for U.S. federal income tax purposes.

December 31, 2017

 

     Total Cumulative Distributions
for the Fiscal Period
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Period
 
    

Net

Investment

Income

   

Net Realized

Capital Gains

Short-Term

   

Net Realized

Capital Gains

Long-Term

    Return of
Capital
   

Total Per

Common
Share

   

Net

Investment

Income

   

Net Realized
Capital Gains

Short-Term

   

Net Realized

Capital Gains

Long-Term

    Return of
Capital
    Total Per
Common
Share
 

BGR*

  $ 0.404129     $     $     $ 0.527071     $ 0.931200       43             57     100

CII*

    0.148793                   0.844807       0.993600       15                   85       100  

BDJ

    0.163613             0.396787             0.560400       29             71             100  

BOE

    0.144688       0.649691       1.491621             2.286000       6       29       65             100  

BME*

    0.025870             1.468233       0.905897       2.400000       1             61       38       100  

BGY*

    0.077022                   0.378978       0.456000       17                   83       100  

BCX*

    0.197497                   0.407703       0.605200       33                   67       100  

BST*

                0.195212       1.084788       1.280000                   15       85       100  

BUI

    0.543259             0.908741             1.452000       37             63             100  

 

  * Certain Trusts estimate that they have distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Trust is returned to the shareholder. A return of capital does not necessarily reflect a Trust’s investment performance and should not be confused with “yield” or “income.” When distributions exceed total return performance, the difference will reduce the Trust’s net asset value per share.  

Section 19(a) notices for the Trusts, as applicable, are available on the BlackRock website at http://www.blackrock.com.

Section 19(b) Disclosure

The Trusts, acting pursuant to a U.S. Securities and Exchange Commission (“SEC”) exemptive order and with the approval of each Trust’s Board of Trustees/Directors (the “Board”), each have adopted a plan, consistent with its investment objectives and policies to support a level distribution of income, capital gains and/or return of capital (the “Plan”). In accordance with the Plans, the Trusts distribute the following fixed amounts per share on a monthly basis as of December 31, 2017:

 

Exchange Symbol   Amount Per
Common Share
 

BGR

  $ 0.0776  

CII

    0.0828  

BDJ

    0.0467  

BOE

    0.0780  

BME

    0.2000  

BGY

    0.0380  

BCX

    0.0516  

BST

    0.1300  

BUI

    0.1210  

The fixed amounts distributed per share are subject to change at the discretion of each Trust’s Board. Under its Plan, each Trust will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a monthly basis, the Trusts will distribute long-term capital gains and/or return of capital to shareholders in order to maintain a level distribution. Each monthly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential distribution rate increases or decreases to enable the Trusts to comply with the distribution requirements imposed by the Code.

Shareholders should not draw any conclusions about each Trust’s investment performance from the amount of these distributions or from the terms of the Plan. Each Trust’s total return performance on net asset value is presented in its financial highlights table.

The Board may amend, suspend or terminate a Trust’s Plan at any time without prior notice to the Trust’s shareholders if it deems such actions to be in the best interests of the Trust or its shareholders. The suspension or termination of the Plan could have the effect of creating a trading discount (if the Trust’s stock is trading at or above net asset value) or widening an existing trading discount. The Trusts are subject to risks that could have an adverse impact on their ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, decreased market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to BME’s prospectus for a more complete description of its risks.

 

 

SUPPLEMENTAL INFORMATION      3  


Table of Contents

 

      Page   

The Markets in Review

     2  

Section 19(a) Notices

     3  

Section 19(b) Disclosure

     3  

Annual Report:

  

The Benefits and Risks of Option Over-Writing

     5  

Trust Information

     6  

Derivative Financial Instruments

     24  

Financial Statements:

  

Schedules of Investments

     25  

Statements of Assets and Liabilities

     89  

Statements of Operations

     91  

Statements of Changes in Net Assets

     93  

Statements of Cash Flows

     98  

Financial Highlights

     100  

Notes to Financial Statements

     109  

Report of Independent Registered Public Accounting Firm

     122  

Important Tax Information

     123  

Automatic Dividend Reinvestment Plans

     124  

Trustee and Officer Information

     125  

Additional Information

     128  

Glossary of Terms Used in this Report

     131  

 

 

4   


The Benefits and Risks of Option Over-Writing

 

In general, the goal of each of the Trusts is to provide total return through a combination of current income and realized and unrealized gains (capital appreciation). The Trusts seek to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to enhance the Trusts’ distribution rate and total return performance. However, these objectives cannot be achieved in all market conditions.

The Trusts primarily write single stock covered call options, and may also from time to time write single stock put options. When writing (selling) a covered call option, the Trust holds an underlying equity security and enters into an option transaction which allows the counterparty to purchase the equity security at an agreed-upon price (“strike price”) within an agreed-upon time period. The Trusts receive cash premiums from the counterparties upon writing (selling) the option, which along with net investment income and net realized gains, if any, are generally available to support current or future distributions paid by the Trusts. During the option term, the counterparty may elect to exercise the option if the market value of the equity security rises above the strike price, and the Trust is obligated to sell the equity security to the counterparty at the strike price, realizing a gain or loss. Premiums received increase gains or reduce losses realized on the sale of the equity security. If the option remains unexercised upon its expiration, the Trusts realize gains equal to the premiums received. Alternatively, an option may be closed out by an offsetting purchase or sale of an option prior to expiration. The Trust realizes a capital gain from a closing purchase or sale transaction if the premium paid is less than the premium received from writing the option. The Trust realizes a capital loss from a closing purchase or sale transaction if the premium received is less than the premium paid to purchase the option.

Writing covered call options entails certain risks, which include, but are not limited to, the following: an increase in the value of the underlying equity security above the strike price can result in the exercise of a written option (sale by the Trust to the counterparty) when the Trust might not otherwise have sold the security; exercise of the option by the counterparty may result in a sale below the current market value and a gain or loss being realized by the Trust; and limiting the potential appreciation that could be realized on the underlying equity security to the extent of the strike price of the option. As such, an option over-writing strategy may outperform the general equity market in flat or falling markets but underperform in rising markets.

Each Trust employs a plan to support a level distribution of income, capital gains and/or return of capital. The goal of the plan is to provide shareholders with consistent and predictable cash flows by setting distribution rates based on expected long-term returns of the Trusts. Such distributions, under certain circumstances, may exceed a Trust’s total return performance. When total distributions exceed total return performance for the period, the difference reduces the Trust’s total assets and net asset value per share (“NAV”) and, therefore, could have the effect of increasing the Trust’s expense ratio and reducing the amount of assets, the Trust has available for long term investment. In order to make these distributions, a Trust may have to sell portfolio securities at less than opportune times.

The final tax characterization of distributions is determined after the fiscal year and is reported in the Trust’s annual report to shareholders. Distributions can be characterized as ordinary income, capital gains and/or return of capital. The Trust’s taxable net investment income or net realized capital gains (“taxable income”) may not be sufficient to support the level of distributions paid. To the extent that distributions exceed the Trust’s current and accumulated earnings and profits, the excess may be treated as a non-taxable return of capital. Distributions that exceed a Trust’s taxable income but do not exceed the Trust’s current and accumulated earnings and profits, may be classified as ordinary income which are taxable to shareholders. Such distributions are reported as distributions in excess of net investment income.

A return of capital distribution does not necessarily reflect a Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’ A return of capital is a return of a portion of an investor’s original investment. A return of capital is not taxable, but it reduces a shareholder’s tax basis in his or her shares, thus reducing any loss or increasing any gain on a subsequent disposition by the shareholder of his or her shares. It is possible that a substantial portion of the distributions paid during a calendar year may ultimately be classified as return of capital or as distributions in excess of net investment income for U.S. federal income tax purposes when the final determination of the source and character of the distributions is made.

To illustrate these concepts, assume the following: (1) a common stock purchased at and currently trading at $37.15 per share; (2) a three-month call option is written by a Trust with a strike price of $40 (i.e., 7.7% higher than the current market price); and (3) the Trust receives $2.45, or 6.6% of the common stock’s value, as a premium. If the stock price remains unchanged, the option expires and there would be a 6.6% return for the three-month period. If the stock were to decline in price by 6.6% (i.e., decline to $34.70 per share), the option strategy would “break-even” from an economic perspective resulting in neither a gain nor a loss. If the stock were to climb to a price of $40 or above, the option would be exercised and the stock would return 7.7% coupled with the option premium received of 6.6% for a total return of 14.3%. Under this scenario, the Trust loses the benefit of any appreciation of the stock above $40, and thus is limited to a 14.3% total return. The premium from writing the call option serves to offset some of the unrealized loss on the stock in the event that the price of the stock declines, but if the stock were to decline more than 6.6% under this scenario, the Trust’s downside protection is eliminated and the stock could eventually become worthless.

Each Trust intends to write covered call options to varying degrees depending upon market conditions. Please refer to each Trust’s Schedule of Investments and the Notes to Financial Statements for details of written options.

 

 

THE BENEFITS AND RISKS OF OPTION OVER-WRITING      5  


Trust Information  as of December 31, 2017    BlackRock Energy and Resources Trust

 

Investment Objective

BlackRock Energy and Resources Trust’s (BGR) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities of energy and natural resources companies and equity derivatives with exposure to the energy and natural resources industry. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information

 

Symbol on New York Stock Exchange (“NYSE”)

  BGR

Initial Offering Date

  December 29, 2004

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($14.18)(a)

  6.57%

Current Monthly Distribution per Common Share(b)

  $0.0776

Current Annualized Distribution per Common Share(b)

  $0.9312

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BGR(a)(b)

    5.11      3.49

Lipper Natural Resources Funds(c)

    7.33        1.06  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

Oil prices, after declining in the first half of the year, staged a strong recovery once signs emerged that the oil market was tighter than many believed. Global inventories declined at a time of the year when they typically rise, suggesting limited availability of near-term supply. However, energy stocks — after falling sharply when oil prices were weak in the first half — did not stage a rebound of equal magnitude in oil’s subsequent rally. In this environment, the Trust’s positions in more leveraged exploration and production (E&P) stocks, such as Anadarko Petroleum Corp. and Hess Corp., detracted from absolute performance.

There was a distinct performance differential between integrated energy companies and E&Ps during the year, with the former outperforming. In addition, international integrated companies outpaced their U.S. counterparts. With this as the backdrop, the Trust’s holdings in Royal Dutch Shell PLC and BP PLC were the largest contributors to absolute performance.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The option overlay strategy had a positive impact on results.

Describe recent portfolio activity.

Early in the period, the investment adviser increased the Trust’s exposure to U.S. onshore energy services companies and funded the purchases by taking profits in certain E&P holdings. Later in the period, the investment adviser increased the Trust’s exposure to the integrated energy industry while reducing its allocation to certain U.S.-based E&P stocks. The latter shift included exiting the Trust’s position in Hess Corp. and reducing its weighting in EOG Resources, Inc.

Describe portfolio positioning at period end.

The E&P sector represented the Trust’s largest allocation, followed by the integrated, oil services, distribution, and refining & marketing industries, respectively. The investment adviser positioned the Trust with a higher-quality bias, focusing on companies with robust balance sheets and low costs of production.

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.

 

 

6    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Energy and Resources Trust

 

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 14.18      $ 14.44        (1.80 )%     $ 14.87      $ 12.32  

Net Asset Value

    15.79        16.33        (3.31      16.57        13.61  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

Chevron Corp.

    10

Royal Dutch Shell PLC — ADR, Class A

    10  

Exxon Mobil Corp.

    9  

BP PLC

    7  

ConocoPhillips

    5  

EOG Resources, Inc.

    4  

Halliburton Co.

    4  

Pioneer Natural Resources Co.

    4  

TransCanada Corp.

    3  

Devon Energy Corp.

    3  

 

  * Excludes option positions and money market funds.  

INDUSTRY ALLOCATION

 

Industry  

12/31/17

   

12/31/16

 

Oil, Gas & Consumable Fuels

    90     91

Energy Equipment & Services

    10       9  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      7  


Trust Information  as of December 31, 2017    BlackRock Enhanced Capital and Income Fund, Inc.

 

Investment Objective

BlackRock Enhanced Capital and Income Fund, Inc.’s (CII) (the “Trust”) investment objective is to provide investors with a combination of current income and capital appreciation. The Trust seeks to achieve its investment objective by investing in a portfolio of equity securities of U.S. and foreign issuers. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust also seeks to achieve its investment policy by employing a strategy of writing (selling) call and put options.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information

 

Symbol on NYSE

  CII

Initial Offering Date

  April 30, 2004

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($16.38)(a)

  6.07%

Current Monthly Distribution per Common Share(b)

  $0.0828

Current Annualized Distribution per Common Share(b)

  $0.9936

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

CII(a)(b)

    27.54      21.69

S&P 500® Index

    N/A        21.83  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

N/A — Not applicable as the index does not have a market price.

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

In sector terms, consumer discretionary was the prime contributor to relative performance, led by household durables and specialty retail holdings. Stock selection in energy and materials also added considerable value, as did holdings within the information technology (“IT”) sector. Conversely, utilities and financials detracted from performance.

In stock specifics, Lam Research Corp. and D.R. Horton, Inc. were top individual contributors. Lam performed very well, notably in the first half of the year, on the back of strong execution and growing demand for its products, driven by the build-out of 3D NAND capacity, for which the company is a key supplier. The stock was sold by the end of the reporting period as, in the investment adviser’s view, semiconductor capital expenditures are nearing peak levels and Lam’s valuation reflected the sustainability of above-normal demand trends. Homebuilders, including D.R. Horton, outperformed during the year on continued strength in single family housing demand, particularly among first-time, entry-level homebuyers. The investment adviser thinks that cyclical and secular drivers (particularly the return of the entry-level homebuyer) should support continued growth in housing markets for the foreseeable future and, hence, sustainable earnings per share growth that is not reflected in current homebuilder share prices.

Additional contributions came from an underweight to General Electric Co., as well as the position in Activision Blizzard, Inc.

Among the largest individual detractors in the period was Walgreens Boots Alliance. Early in the reporting period, sentiment for Walgreens’ shares was negatively affected by delays in the closing of its highly anticipated merger with peer Rite-Aid. Later, the stock underperformed on press reports that Amazon is evaluating entering the retail pharmacy market. The investment adviser ultimately sold the position on the view that the company’s over-reliance on front-of-the-store sales exposes it to potential ongoing sales and margin pressure.

Elsewhere, zero exposure to Amazon.com, Inc. and Facebook, Inc. proved disadvantageous.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy had a negative impact on performance during the reporting period.

 

 

8    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Enhanced Capital and Income Fund, Inc.

 

Describe recent portfolio activity.

Due to a combination of portfolio trading activity and market movement during the 12-month period, the Trust’s exposure to the health care sector increased, with additions in utilities and materials as well. The largest reductions were in consumer staples and energy.

Describe portfolio positioning at period end.

From a positioning standpoint, as of period end, the investment adviser continues to favor financials, particularly banks, and is also focusing on stock-specific opportunities to capture growth tied to healthy U.S. consumers. These cyclical positions are balanced with strategic allocations to more stable growers in the health care and IT sectors. The investment adviser continues to underweight defensive stocks, as well as industrials.

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 16.38      $ 13.71        19.47    $ 16.46      $ 13.63  

Net Asset Value

    17.19        15.08        13.99        17.26        15.08  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

Apple, Inc.

    5

Alphabet, Inc., Class A

    4  

Microsoft Corp.

    4  

JPMorgan Chase & Co.

    4  

Bank of America Corp.

    3  

Comcast Corp., Class A

    3  

Pfizer, Inc.

    3  

Altria Group, Inc.

    2  

Home Depot, Inc.

    2  

Wal-Mart Stores, Inc.

    2  

 

  * Excludes option positions and money market funds.  

SECTOR ALLOCATION

 

Sector  

12/31/17

   

12/31/16

 

Information Technology

    26     26

Financials

    17       17  

Health Care

    16       14  

Consumer Discretionary

    14       15  

Industrials

    7       6  

Consumer Staples

    6       9  

Energy

    6       8  

Materials

    5       4  

Utilities

    3       1  

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      9  


Trust Information  as of December 31, 2017    BlackRock Enhanced Equity Dividend Trust

 

Investment Objective

BlackRock Enhanced Equity Dividend Trust’s (BDJ) (the “Trust”) primary investment objective is to provide current income and current gains, with a secondary investment objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing in common stocks that pay dividends and have the potential for capital appreciation and by utilizing an option writing (selling) strategy to seek total return performance and enhance distributions. The Trust invests, under normal market conditions, at least 80% of its total assets in dividend paying equities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.

Trust Information

 

Symbol on NYSE

  BDJ

Initial Offering Date

  August 31, 2005

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($9.23)(a)

  6.07%

Current Monthly Distribution per Common Share(b)

  $0.0467

Current Annualized Distribution per Common Share(b)

  $0.5604

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BDJ(a)(b)

    20.63      15.06

Russell 1000® Value Index

    N/A        13.66  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

N/A — Not applicable as the index does not have a market price.

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

The largest contribution to performance for the 12-month period came from a combination of stock selection and allocation decisions within the health care sector. Notably, stock selection and an overweight to the health care providers & services industry and stock selection in pharmaceuticals added to relative performance. In energy, an underweight to U.S. integrated oil & gas operators and an overweight to their non-U.S.-domiciled peers proved beneficial within the oil, gas & consumable fuels industry. An underweight to the energy equipment & services industry also contributed. Lastly, a combination of stock selection within and an underweight to telecommunication services (“telecom”) contributed to relative performance, as did an underweight to the real estate sector.

The largest detractor from relative return derived from the portfolio’s cash position, as the period saw rising U.S. stock prices. Within utilities, a combination of stock selection within and an underweight to the electric utilities industry negatively impacted returns. In financials, stock selection in the insurance segment and an underweight to the diversified financial services industry detracted. At the industry level, stock selection within food & staples retailing was unfavorable.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy had a negative effect on performance.

Describe recent portfolio activity.

During the 12-month period, the Trust significantly boosted exposure to the health care sector. Holdings within telecom and utilities also were increased. Conversely, the Trust significantly reduced its holdings in the industrials sector. The Trust also reduced exposure to information technology (“IT”) and consumer discretionary.

Describe portfolio positioning at period end.

The Trust’s largest allocations were in the financials, health care and energy sectors. Relative to the benchmark, the Trust’s largest overweight positions were in the health care, IT and financials sectors. The Trust’s largest relative underweights were in the real estate, consumer discretionary and consumer staples segments.

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.

 

 

10    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Enhanced Equity Dividend Trust

 

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 9.23      $ 8.15        13.25    $ 9.31      $ 8.13  

Net Asset Value

    9.96        9.22        8.03        10.02        9.16  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security  

12/31/17

 

JPMorgan Chase & Co.

    4

Bank of America Corp.

    4  

Citigroup, Inc.

    4  

Pfizer, Inc.

    4  

Wells Fargo & Co.

    3  

Oracle Corp.

    3  

Anthem, Inc.

    3  

Royal Dutch Shell PLC — ADR

    3  

Microsoft Corp.

    2  

Suncor Energy, Inc.

    2  

 

  * Excludes option positions and money market funds.  

SECTOR ALLOCATION

 

Sector  

12/31/17

   

12/31/16

 

Financials

    29     30

Health Care

    19       14  

Energy

    12       12  

Information Technology

    10       9  

Industrials

    8       12  

Consumer Staples

    7       7  

Utilities

    5       5  

Consumer Discretionary

    4       6  

Materials

    3       3  

Telecommunication Services

    3       2  

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      11  


Trust Information  as of December 31, 2017    BlackRock Enhanced Global Dividend Trust

 

Investment Objective

BlackRock Enhanced Global Dividend Trust’s (BOE) (the “Trust”) primary investment objective is to provide current income and current gains, with a secondary investment objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy to seek total return performance and enhance distributions. Under normal circumstances, the Trust invests at least 80% of its net assets in dividend-paying equity securities and at least 40% of its assets outside of the U.S. (unless market conditions are not deemed favorable by Trust management, in which case the Trust would invest at least 30% of its assets outside of the U.S.). The Trust may invest in securities of companies of any market capitalization, but intends to invest primarily in securities of large capitalization companies. The Trust may invest directly in such securities or synthetically through the use of derivatives.

On March 22, 2017, the Trust’s Board approved a change to the Trust’s name from “BlackRock Global Opportunities Equity Trust” to “BlackRock Enhanced Global Dividend Trust.” The Board also approved changes to certain of the Trust’s non-fundamental investment policies. Please refer to the Additional Information section. These changes became effective on June 12, 2017.

No assurance can be given that the Trust’s investment objectives will be achieved.

Trust Information

 

Symbol on NYSE

  BOE

Initial Offering Date

  May 31, 2005

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($12.51)(a)

  7.48%

Current Monthly Distribution per Common Share(b)

  $0.0780

Current Annualized Distribution per Common Share(b)

  $0.9360

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BOE(a)(b).

    28.28      17.22

MSCI All Country World Index

    N/A        23.97  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

N/A — Not applicable as the index does not have a market price.

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

The Trust’s overweight to consumer staples detracted from returns, as did stock selection in the sector. In particular, exposure to tobacco stocks Imperial Brands PLC, Altria Group, Inc. and Philip Morris International, Inc. held back performance. Stock selection within materials and consumer discretionary also weighed on returns.

The leading contributor to relative performance during the period was stock selection in telecommunication services (“telecom”), notably within the diversified telecom services sub-industry, where a lack of exposure to AT&T, Inc. added to results. Positive stock selection within the financials sector contributed to returns, notably bank holdings Federal Bank Ltd. and Unicredit SpA. An underweight to utilities also boosted performance.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s options writing strategy detracted from returns.

Describe recent portfolio activity.

The Trust significantly increased exposure to consumer staples, with a focus on the tobacco industry, as well as to health care, where pharmaceuticals were favored. In contrast, the Trust eliminated exposure to energy and significantly reduced its holdings in financials, mainly banks.

 

 

12    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Enhanced Global Dividend Trust

 

Describe portfolio positioning at period end.

At period end, the Trust’s largest sector overweights were in the consumer staples and health care sectors, with an emphasis on the tobacco and pharmaceuticals industries, respectively. The largest underweights were to information technology and financials. The Trust had no exposure to real estate, utilities or energy at the end of the period. From a regional perspective, a majority of portfolio assets was invested either within the United States or Europe, with significant exposure in the United Kingdom and Switzerland.

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 12.51      $ 11.57        8.12    $ 13.94      $ 11.57  

Net Asset Value

    13.22        13.38        (1.20      14.61        13.10  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security  

12/31/17

 

British American Tobacco PLC

    4

Altria Group, Inc.

    4  

Imperial Brands PLC

    4  

Johnson & Johnson

    3  

Sanofi

    3  

Cisco Systems, Inc.

    3  

Novartis AG, Registered Shares

    3  

Philip Morris International, Inc.

    3  

Rogers Communications, Inc., Class B

    3  

Genuine Parts Co.

    3  

 

  * Excludes option positions and money market funds.  

GEOGRAPHIC ALLOCATION

 

Country   12/31/17    

12/31/16

 

United States

    42     59

United Kingdom

    16       6  

Switzerland

    10       2  

Canada

    6       1  

Australia

    4        

France

    3       2  

Taiwan

    3        

Germany

    3       2  

Belgium

    2       2  

Japan

    2       6  

Finland

    2        

Sweden

    2       (a) 

China

    (a)      3  

India

    (a)      3  

Italy

    (a)      2  

Spain

    (a)      1  

Other

    5 (b)      11 (c) 

 

  (a)  Representing less than 1% of the Trust’s total investments.  
  (b)  Other includes a 1% holding or less in each of the following countries: Denmark, Hong Kong, India and Netherlands.  
  (c)  Other includes a 1% holding or less in each of the following countries: Australia, Denmark, Hong Kong, Indonesia, Ireland, Israel, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Portugal, South Africa, South Korea, Sweden, Taiwan and Thailand.  
 

 

 

TRUST INFORMATION      13  


Trust Information  as of December 31, 2017    BlackRock Enhanced International Dividend Trust

 

Investment Objective

BlackRock Enhanced International Dividend Trust’s (BGY) (the “Trust”) primary investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies of any market capitalization located in countries throughout the world and utilizing an option writing (selling) strategy to seek total return performance and enhance distributions. The Trust invests, under normal circumstances, at least 80% of its net assets in dividend-paying equity securities issued by non-U.S. companies of any market capitalization, but intends to invest primarily in securities of large capitalization companies. The Trust may invest directly in such securities or synthetically through the use of derivatives.

On March 22, 2017, the Trust’s Board approved a change to the Trust’s name from “BlackRock International Growth & Income Trust” to “BlackRock Enhanced International Dividend Trust.” The Board also approved changes to certain of the Trust’s non-fundamental investment policies. Please refer to the Additional Information section. These changes became effective on June 12, 2017.

No assurance can be given that the Trust’s investment objectives will be achieved.

Trust Information

 

Symbol on NYSE

  BGY

Initial Offering Date

  May 30, 2007

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($6.52)(a)

  6.99%

Current Monthly Distribution per Common Share(b)

  $0.0380

Current Annualized Distribution per Common Share(b)

  $0.4560

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BGY(a)(b).

    27.23      20.88

MSCI All Country World Index ex-USA

    N/A        27.19  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

N/A — Not applicable as the index does not have a market price.

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

An overweight to and stock selection in health care detracted from relative performance, mainly driven by pharmaceuticals exposure. In addition, stock selection in consumer discretionary weighed on relative return, due largely to holdings within the internet and direct retail marketing industry. An overweight and stock selection in consumer staples also detracted, with tobacco holdings lagging the most. Lastly, an overweight to the materials sector constrained returns.

The leading contributor to relative performance during the period was positive stock selection within the financials sector, largely due to the Trust’s position in HDFC Bank Ltd., India’s second largest private bank. Favorable stock selection in information technology, notably within the software sector, also contributed to returns. Finally, stock selection in industrials and telecommunication services was additive.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s options writing strategy detracted from relative returns.

Describe recent portfolio activity.

The Trust significantly increased exposure to consumer staples, with a focus on the tobacco industry, as well as to health care, where pharmaceuticals were favored. In contrast, the Trust eliminated exposure to energy and significantly reduced its holdings in financials, mainly banks.

Describe portfolio positioning at period end.

At period end, the Trust’s largest sector overweights were in the consumer staples and health care sectors, with an emphasis on the tobacco and pharmaceuticals industries, respectively. The largest underweight exposure was to financials, particularly banks. The Trust had no exposure to real estate, utilities or energy. In regional terms, the majority of portfolio assets was invested in European equities, with significant exposure to the United Kingdom and Switzerland.

 

 

14    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Enhanced International Dividend Trust

 

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 6.52      $ 5.51        18.33    $ 6.71      $ 5.45  

Net Asset Value

    7.06        6.28        12.42        7.10        6.28  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

British American Tobacco PLC

    5

Imperial Brands PLC

    4  

Sanofi

    4  

Novartis AG, Registered Shares

    3  

Rogers Communications, Inc., Class B

    3  

TELUS Corp.

    3  

Nestle SA

    3  

WisdomTree Japan Hedged Equity Fund

    3  

Deutsche Post AG, Registered Shares

    3  

Japan Tobacco, Inc.

    3  

 

  * Excludes option positions and money market funds.  

GEOGRAPHIC ALLOCATION

 

Country   12/31/17    

12/31/16

 

United Kingdom

    19     16

Switzerland

    12       5  

Canada

    7       5  

United States

    6       8  

France

    6       9  

Netherlands

    6       6  

China

    6       5  

Australia

    5        

Japan

    5       8  

Germany

    5       6  

Taiwan

    3        

Belgium

    3       2  

Sweden

    3       1  

Finland

    2        

Hong Kong

    2       2  

India

    2       4  

South Korea

    2       3  

South Africa

    2        

Denmark

    2        

Ireland

    (a)      2  

Italy

          6  

Spain

          1  

Mexico

          1  

Other

    2 (b)      10 (c) 

 

  (a)  Representing less than 1% of the Trust’s total investments.  
  (b)  Other includes a 1% holding or less in each of the following countries: Ireland and Portugal.  
  (c)  Other includes a 1% holding or less in each of the following countries: Australia, Denmark, Indonesia, Israel, New Zealand, Norway, Peru, Philippines, Portugal, South Africa, Taiwan and Thailand.  
 

 

 

TRUST INFORMATION      15  


Trust Information  as of December 31, 2017    BlackRock Health Sciences Trust

 

Investment Objective

BlackRock Health Sciences Trust’s (BME) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities of companies engaged in the health sciences and related industries and equity derivatives with exposure to the health sciences industry. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information

 

Symbol on NYSE

  BME

Initial Offering Date

  March 31, 2005

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($36.50)(a)

  6.58%

Current Monthly Distribution per Common Share(b)

  $0.2000

Current Annualized Distribution per Common Share(b)

  $2.4000

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BME(a)(b)

    23.17      22.17

Russell 3000® Healthcare Index

    N/A        23.13  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s premium to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

Health care stocks produced strong absolute returns in 2017 amid the steady rally in the broader market. However, the sector lagged the headline indices somewhat due to investors’ preference for economically sensitive stocks.

The medical devices & supplies subsector was the sole detractor from relative performance due to underweights in the life sciences tools and health care supplies industries. However, positions in the health care equipment industry, including C.R. Bard, Inc. (which was acquired), Baxter International, Inc., Intuitive Surgical, Inc. and Stryker Corp., aided results.

The Trust generated outperformance in three out of four subsectors (health care providers & services, biotechnology and pharmaceuticals). The health care providers & services subsector had the largest positive effect on performance, largely due to the Trust’s overweight allocation to the managed care industry. Some of the key contributors in this area were UnitedHealth Group, Inc., Cigna Corp., Centene Corp., Aetna, Inc. and Anthem, Inc., all of which were bolstered by their of solid business results.

The biotechnology subsector also was a meaningful contributor to relative performance due to the investment adviser’s effective stock selection. Vertex Pharmaceuticals, Inc., which reported favorable results in its cystic fibrosis franchise earlier in the year, was a key contributor. Similarly, positions in Sarepta Therapeutics, Inc., AveXis, Inc. and Alnylam Pharmaceuticals, Inc., were notable contributors due to positive clinical developments. The Trust also benefited from an overweight position in Celgene Corp. for most of the year and then scaling back to an underweight stance before the company reported disappointing financial results in October.

In pharmaceuticals, underweight positions in Merck & Co., Inc. and Pfizer, Inc., combined with an out-of-benchmark position in AstraZeneca PLC, were the key drivers of the Trust’s positive performance.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. This strategy detracted from performance given the double-digit absolute return for health care stocks in 2017.

 

 

16    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Health Sciences Trust

 

Describe recent portfolio activity.

The Trust increased its allocation to the medical devices & supplies subsector and reduced its weightings in the health care providers & services area. The Trust’s allocations in biotechnology and pharmaceuticals were largely unchanged.

Describe portfolio positioning at period end.

The Trust continued to employ a bottom-up, fundamental investment process in an effort to construct a balanced, diversified portfolio of health care stocks. The investment adviser continued to look for companies that can benefit from the aging demographics in both developed and developing countries, as well as those participating in the innovation occurring in the medical technology.

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 36.50      $ 31.75        14.96    $ 38.00      $ 31.75  

Net Asset Value

    35.69        31.30        14.03        36.12        31.30  

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security  

12/31/17

 

UnitedHealth Group, Inc.

    9

Pfizer, Inc.

    4  

Medtronic PLC

    4  

Stryker Corp.

    4  

Abbott Laboratories

    4  

Amgen, Inc.

    3  

Cigna Corp.

    3  

Johnson & Johnson

    3  

Biogen, Inc.

    2  

Quest Diagnostics, Inc.

    2  

 

  * Excludes option positions and money market funds.  

INDUSTRY ALLOCATION

 

Industry   12/31/17    

12/31/16

 

Health Care Providers & Services

    25     30

Biotechnology

    25       24  

Pharmaceuticals

    24       23  

Health Care Equipment & Supplies

    23       21  

Life Sciences Tools & Services

    2       1  

Diversified Consumer Services

    1       1  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      17  


Trust Information  as of December 31, 2017    BlackRock Resources & Commodities Strategy Trust

 

Investment Objective

BlackRock Resources & Commodities Strategy Trust’s (BCX) (the “Trust”) primary investment objective is to seek high current income and current gains, with a secondary objective of capital appreciation. The Trust will seek to achieve its investment objectives, under normal market conditions, by investing at least 80% of its total assets in equity securities issued by commodity or natural resources companies, derivatives with exposure to commodity or natural resources companies or investments in securities and derivatives linked to the underlying price movement of commodities or natural resources. While permitted, the Trust does not currently expect to invest in securities and derivatives linked to the underlying price movement of commodities or natural resources. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option overwriting strategy in an effort to seek total return performance and enhance distributions.

No assurance can be given that the Trust’s investment objectives will be achieved.

Trust Information

 

Symbol on NYSE

  BCX

Initial Offering Date

  March 30, 2011

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($9.77)(a)

  6.34%

Current Monthly Distribution per Common Share(b)

  $0.0516

Current Annualized Distribution per Common Share(b)

  $0.6192

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BCX(a)(b)

    26.55      15.60

Lipper Natural Resources Funds(c)

    7.33        1.06  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

The Trust’s allocation to the mining sector made a positive contribution to absolute returns in 2017. Economic data from China was better than expected, and the country’s measures to remove excess capacity in a number of industries was supportive for commodity prices such as zinc, where Chinese production fell year-over-year. Capacity rationalization, combined with solid demand and supply constraints stemming from the underinvestment in new mines in recent years, provided a highly favorable backdrop for the market. Base metals experienced the best performance, with copper and zinc moving to four- and ten-year highs, respectively. Precious metals prices also posted positive returns amid U.S. dollar weakness. While the price of iron ore declined, it remained meaningfully above analysts’ consensus and considerably higher than the lows of December 2015. The iron ore price, at these levels, supported healthy profit margins for mining companies. In this environment, the Trust’s holdings in Glencore PLC, Rio Tinto PLC and Vale SA all contributed to absolute returns.

The sandalwood producer Quintis Ltd. was the largest detractor from absolute performance. The company was the focus of a short seller report in March 2017, and in May it announced that it had lost a contract. While the contract was for a relatively small amount of product, the loss highlighted an internal control issue and raised concerns about the company’s management practices. Quintis later entered a voluntary trading halt and announced it was in discussions with multiple parties regarding debt and equity options.

The exploration & production company (“E&P”) Anadarko Petroleum Corp., which was negatively affected by the broader sell-off in energy stocks during the first half of the period, also detracted from returns. In addition, the company was linked to two operational incidents with fatalities. The Trust exited the position in November.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The option overlay strategy had an adverse effect on results at a time of positive performance for the overall sector.

Describe recent portfolio activity.

The investment adviser increased the Trust’s weighting in the mining industry while taking profits in certain agriculture stocks that had performed well earlier in the year. It also rotated its energy holdings by exiting the E&P stocks Anadarko Petroleum Corp. and Hess Corp. and adding to positions in the integrated energy companies Chevron Corp. and Exxon Corp.

 

 

18    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Resources & Commodities Strategy Trust

 

The battery-materials space (lithium and cobalt, and to a lesser extent, nickel and copper) grew in prominence in 2017. Investors’ excitement about the transition to electric vehicles mounted as countries stepped up their regulatory support efforts. China, for example, announced plans to introduce a ban on vehicles powered by fossil fuels. The shift toward electric vehicles led to an improving demand outlook for the related commodities. Accordingly, the investment adviser continued to seek opportunities in this area.

Describe portfolio positioning at period end.

The energy sector represented the Trust’s largest allocation, followed by mining and agriculture, respectively.

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 9.77      $ 8.27        18.14    $ 9.82      $ 7.76  

Net Asset Value

    10.64        9.86        7.91        10.65        9.00  

Market Price and Net Asset Value History For Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

Royal Dutch Shell PLC — ADR, Class A

    6

BP PLC — ADR

    6  

Chevron Corp.

    6  

Glencore PLC

    5  

Agrium, Inc.

    4  

Vale SA — ADR

    4  

Rio Tinto PLC — ADR

    3  

First Quantum Minerals Ltd.

    3  

Teck Resources Ltd.

    3  

Packaging Corp. of America

    3  

 

  * Excludes option positions and money market funds.  

INDUSTRY ALLOCATION

 

Industry   12/31/17    

12/31/16

 

Oil, Gas & Consumable Fuels

    34     34

Metals & Mining

    34       30  

Chemicals

    13       18  

Food Products

    11       5  

Energy Equipment & Services

    3       3  

Containers & Packaging

    3       6  

Paper & Forest Products

    1       1  

Machinery

    1        

Food & Staples Retailing

          2  

Other

    (a)      1 (b) 

 

  (a)  Other includes less than 1% in each of the following industries: Advertising Agencies.  
  (b)  Other includes less than 1% in each of the following industries: Building Products, Electric Utilities, Electrical Equipment, Electronic Equipment, Independent Power and Renewable Electricity Producers, Instruments & Components, Machinery, Multi-Utilities, Real Estate Investment Trusts (REITs), Semiconductors & Semiconductor Equipment and Water Utilities.  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      19  


Trust Information  as of December 31, 2017    BlackRock Science and Technology Trust

 

Investment Objective

BlackRock Science and Technology Trust’s (BST) (the “Trust”) investment objective is to provide income and total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities of science and technology companies. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information

 

Symbol on NYSE

  BST

Initial Offering Date

  October 30, 2014

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($26.69)(a)

  5.84%

Current Monthly Distribution per Common Share(b)

  $0.1300

Current Annualized Distribution per Common Share(b)

  $1.5600

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BST(a)(b).

    57.15      45.73

MSCI World Information Technology Index

    N/A        38.23  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  

N/A — Not applicable as the index does not have a market price.

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s relative performance based on the index cited above:

What factors influenced performance?

Positive contributions to the Trust’s relative performance were led by positions within the software & services group. These included mobile payment company Square Inc., video game publishers Take-Two Interactive Software, Inc., Activision Blizzard, Inc. and Nintendo Co. Ltd., and software engineering firm Altair Engineering. E-commerce holdings within the internet software & services industry also added to performance, including Chinese ecommerce giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd., as well as Shopify, Inc. (Canada) and MercadoLibre, Inc. (Argentina). Positioning within semiconductor & semiconductor equipment boosted performance as well, led by SOITEC, STMicroelectronics NV, Ulvac, Inc. and LAM Research Corp.

Conversely, within the technology hardware & equipment industry group, the Trust’s underweights to consumer product firms Apple, Inc. and Samsung Electronics Co. Ltd., combined with overweight positions in handset component provider Sunny Optical Technology Co. Ltd. and chipmaker Advanced Micro Devices, Inc., detracted from performance. Other detractors included Tesla, Inc. in the automobile industry, RYB Education within consumer services and Jainpu Technology, Inc. in diversified financials.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s options writing strategy detracted from returns.

Describe recent portfolio activity.

The Trust added to positions in software & services, largely within the internet software & services sub-industry, while holdings in semiconductor & semiconductor equipment and technology hardware & equipment were slightly decreased.

Describe portfolio positioning at period end.

The Trust held its largest allocation within the software & services industry group, particularly idiosyncratic opportunities within the internet software & services and application software sub-industries. The portfolio also held large allocations in more stable cash flow businesses within the semiconductor & semiconductor equipment and technology hardware & equipment industries segments. Regionally, the Trust maintained most of its exposure in North America, followed by notable weights to the emerging markets and Europe.

 

 

20    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)    BlackRock Science and Technology Trust

 

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 26.69      $ 17.94        48.77    $ 27.45      $ 17.94  

Net Asset Value

    27.73        20.10        37.96        28.93        20.10  

Market Price and Net Asset Value History Since Inception

 

LOGO

 

(a)  Commencement of operations.

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

Tencent Holdings Ltd.

    6

Alphabet, Inc.

    6  

Apple, Inc.

    6  

Microsoft Corp.

    5  

Amazon.com, Inc.

    5  

Alibaba Group Holding Ltd. — ADR

    4  

Facebook, Inc.

    3  

Visa, Inc.

    2  

Broadcom Ltd.

    2  

Mastercard, Inc.

    2  

 

  * Excludes option positions and money market funds.  

INDUSTRY ALLOCATION

 

Industry

  12/31/17    

12/31/16

 

Internet Software & Services

    28     23

Software

    22       21  

Semiconductors & Semiconductor Equipment

    18       19  

IT Services

    10       11  

Technology Hardware, Storage & Peripherals

    7       7  

Internet & Direct Marketing Retail

    6       7  

Electronic Equipment, Instruments & Components

    2       2  

Media

    1       2  

Equity Real Estate Investment Trusts (REITs)

          4  

Diversified Telecommunication Services

          1  

Other

    6 (a)      3 (b) 

 

  (a)  Other includes a 1% holding or less in each of the following industries: Automobiles, Chemicals, Consumer Finance, Electrical Equipment, Household Durables and Real Estate Investment Trusts (REITs).  
  (b)  Other includes a 1% holding or less in each of the following industries; Communications Equipment, Hotels, Restaurants & Leisure, Professional Services, Household Durables and Wireless Telecommunication Services.  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      21  


Trust Information  as of December 31, 2017   

BlackRock Utilities, Infrastructure & Power Opportunities Trust

 

Investment Objective

BlackRock Utilities, Infrastructure & Power Opportunities Trust’s (BUI) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing primarily in equity securities issued by companies that are engaged in the Utilities, Infrastructure and Power Opportunities business segments anywhere in the world and by utilizing an option writing (selling) strategy in an effort to seek total return performance and enhance distributions. The Trust considers the “Utilities” business segment to include products, technologies and services connected to the management, ownership, operation, construction, development or financing of facilities used to generate, transmit or distribute electricity, water, natural resources or telecommunications, the “Infrastructure” business segment to include companies that own or operate infrastructure assets or that are involved in the development, construction, distribution or financing of infrastructure assets and the “Power Opportunities” business segment to include companies with a significant involvement in, supporting, or necessary to renewable energy technology and development, alternative fuels, energy efficiency, automotive and sustainable mobility and technologies that enable or support the growth and adoption of new power and energy sources. Under normal circumstances, the Trust invests a substantial amount of its total assets in foreign issuers, issuers that primarily trade in a market located outside the United States or issuers that do a substantial amount of business outside the United States. The Trust may invest directly in such securities or synthetically through the use of derivatives.

On September 6, 2017, the Trust’s Board approved a proposal to change the name of BlackRock Utility and Infrastructure Trust to BlackRock Utilities, Infrastructure & Power Opportunities Trust. The Board also approved changes to certain of the Trust’s non-fundamental investment policies. Please refer to the Additional Information section. These changes became effective on November 27, 2017.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information

 

Symbol on NYSE

  BUI

Initial Offering Date

  November 25, 2011

Current Distribution Rate on Closing Market Price as of December 31, 2017 ($21.62)(a)

  6.72%

Current Monthly Distribution per Common Share(b)

  $0.1210

Current Annualized Distribution per Common Share(b)

  $1.4520

 

  (a)  Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a return of capital. See the Financial Highlights for the actual sources and character of distributions. Past performance does not guarantee future results.  
  (b)  The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.  

Performance and Portfolio Management Commentary

Returns for the 12 months ended December 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      Net Asset Value  

BUI(a)(b)

    25.93      16.62

Lipper Utility Funds(c)

    21.54        14.34  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

The largest contributor to performance was the Trust’s exposure to utilities. Utilities performed strongly during the period, as investors continued to seek higher-yielding equities. From an industry standpoint, stock selection in electric utilities and independent power & renewable electricity producers were the most noteworthy contributors to performance. Within the electric utilities industry, the Trust’s performance benefited from positions in Florida-based NextEra Energy, Inc. and Italian utility operator Enel SpA.

The largest detractor from performance was the Trust’s position in the energy sector, which has been negatively impacted by weak investor sentiment toward the sector. Specifically, the Trust’s position in the oil, gas, & consumable fuels industry notably detracted from performance, especially among midstream master limited partnerships Plains All American Pipeline, LP, Energy Transfer Partners, LP and Genesis Energy, LP.

The Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy detracted from performance during the period.

Describe recent portfolio activity.

During the period, the Trust targeted companies that will benefit from the transition to a low carbon economy, both in the utilities sector and in other industries. The investment adviser believes that we have entered a period of significant disruption during which those companies that have embraced the transition to a lower carbon

 

 

22    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Information  as of December 31, 2017 (continued)   

BlackRock Utilities, Infrastructure & Power Opportunities Trust

 

world and begun to integrate renewable energy will outperform, while those that have been slow to make that transition will suffer from pressure on their business models. This has already begun in Europe, where renewable energy adoption is more advanced, but the trend is likely to affect the sector globally. The Trust’s evolution in its portfolio positioning addressed these structural shifts.

Describe portfolio positioning at period end.

The utilities sector accounted for approximately 62% of the Trust’s assets. The Trust had approximately 21% and 12% of its assets invested in the industrials and energy sectors, respectively, while the remainder was invested in other infrastructure- and power-related sectors.

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.

Market Price and Net Asset Value Per Share Summary

 

    

12/31/17

    

12/31/16

     Change      High      Low  

Market Price

  $ 21.62      $ 18.41        17.44    $ 21.72      $ 18.36  

Net Asset Value

    21.12        19.42        8.75        21.73        19.42  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Trust’s Total Investments *

 

TEN LARGEST HOLDINGS

 

Security   12/31/17  

NextEra Energy, Inc.

    10

Enel SpA

    5  

EDP Renovaveis SA

    4  

Dominion Energy, Inc.

    4  

National Grid PLC

    4  

Atlantia SpA

    4  

Public Service Enterprise Group, Inc.

    3  

Duke Energy Corp.

    3  

Transurban Group

    3  

Exelon Corp.

    3  

 

  * Excludes option positions and money market funds.  

INDUSTRY ALLOCATION

 

Industry  

12/31/17

   

12/31/16

 

Electric Utilities

    33     28

Multi-Utilities

    20       22  

Transportation Infrastructure

    15       14  

Oil, Gas & Consumable Fuels

    12       20  

Independent Power and Renewable Electricity Producers

    8       4  

Construction & Engineering

    3       3  

Electrical Equipment

    3    

Chemicals

    3    

Gas Utilities

    1       1  

Water Utilities

    1       2  

Real Estate Investment Trusts (REITs)

          3  

Diversified Telecommunication Services

          2  

Other

    1 (a)      1 (b) 

 

  (a)  Other includes a 1% holding or less in each of the following industries: Auto Components.  
  (b)  Other includes a 1% holding or less in each of the following industries: Road & Rail and Wireless Telecommunication Services.  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

 

TRUST INFORMATION      23  


Derivative Financial Instruments

 

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

24    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  

December 31, 2017

  

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 101.0%

 

Energy Equipment & Services — 9.7%  

Baker Hughes(a)

    254,900     $ 8,065,036  

Halliburton Co.(a)

    403,500       19,719,045  

Patterson-UTI Energy, Inc.(a)

    219,557       5,052,007  

Precision Drilling Corp.(b)

    821,480       2,489,927  

Schlumberger Ltd.(a)

    156,724       10,561,630  
   

 

 

 
      45,887,645  
Oil, Gas & Consumable Fuels — 91.3%  

Anadarko Petroleum Corp.(a)

    234,233       12,564,258  

Andeavor(a)

    82,550       9,438,767  

BP PLC

    4,681,100       32,839,270  

Cabot Oil & Gas Corp.(a)

    295,800       8,459,880  

Cairn Energy PLC(b)

    1,581,945       4,558,586  

Canadian Natural Resources Ltd.

    400,140       14,299,355  

Chevron Corp.(a)

    396,935       49,692,293  

Cimarex Energy Co.(a)

    114,050       13,915,240  

Concho Resources, Inc.(a)(b)

    33,600       5,047,392  

ConocoPhillips(a)

    442,050       24,264,124  

Devon Energy Corp.(a)

    348,200       14,415,480  

Enbridge, Inc.

    199,200       7,790,511  

Encana Corp.

    1,067,300       14,239,158  

Eni SpA

    272,839       4,514,922  

EOG Resources, Inc.(a)

    185,700       20,038,887  

EQT Corp.(a)

    138,500       7,883,420  

Exxon Mobil Corp.(a)(c)

    491,202       41,084,135  

Kosmos Energy Ltd.(b)

    554,713       3,799,784  

Marathon Oil Corp.(a)

    598,224       10,127,932  

Noble Energy, Inc.(a)(c)

    288,992       8,421,227  

Oil Search Ltd.

    1,063,613       6,439,761  

Phillips 66(a)

    50,150       5,072,672  

Pioneer Natural Resources Co.(a)

    99,976       17,280,852  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Royal Dutch Shell PLC — ADR, Class A(a)

    698,200     $ 46,576,922  

Royal Dutch Shell PLC, Class A

    353,298       11,794,213  

TOTAL SA

    119,603       6,602,071  

TransCanada Corp.

    296,200       14,416,481  

Valero Energy Corp.(a)

    155,900       14,328,769  
   

 

 

 
      429,906,362  
   

 

 

 

Total Long-Term Investments — 101.0%
(Cost — $426,013,729)

 

    475,794,007  
   

 

 

 

Short-Term Securities — 0.8%

 

BlackRock Liquidity Funds, T-Fund, Institutional Class,

   

1.18%(d)(e)

    3,870,844       3,870,844  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost — $3,870,844)

 

    3,870,844  
   

 

 

 

Total Investments Before Options Written — 101.8%
(Cost — $429,884,573)

 

    479,664,851  
   

 

 

 

Options Written — (1.7)%
(Premiums Received — $3,469,397)

 

    (7,819,321
   

 

 

 

Total Investments, Net of Options Written — 100.1%
(Cost — $426,415,176)

 

    471,845,530  

Liabilities in Excess of Other Assets — (0.1)%

 

    (783,604
   

 

 

 

Net Assets — 100.0%

 

  $ 471,061,926  
   

 

 

 

 

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(b) Non-income producing security.
(c)  All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives.
(d) Annualized 7-day yield as of period end.
 
(e) During the year ended December 31, 2017, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
12/ 31/16
     Net
Activity
     Shares
Held at
12/31/17
     Value at
12/31/17
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, T-Fund, Institutional Class

     3,936,617        (65,773      3,870,844      $ 3,870,844      $ 47,600      $ 20      $  

SL Liquidity Series, LLC, Money Market Series

                                 22,641 (b)               
               

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,870,844      $ 70,241      $ 20      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  
  (b)  Represents securities lending income earned from the reinvestments of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.  

For Trust compliance purposes, the Trust’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call

                          

Anadarko Petroleum Corp.

     136          01/05/18        USD     50.00        USD     730        $ (48,620

Andeavor

     90          01/05/18        USD     109.00        USD     1,029          (51,750

Cabot Oil & Gas Corp.

     255          01/05/18        USD     30.00        USD     729          (2,550

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Energy and Resources Trust (BGR)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call (continued)

                          

Devon Energy Corp.

     274          01/05/18        USD     38.00        USD     1,134        $ (91,105

Exxon Mobil Corp.

     273          01/05/18        USD     81.50        USD     2,283          (64,155

Exxon Mobil Corp.

     166          01/05/18        USD     83.50        USD     1,388          (10,209

Halliburton Co.

     326          01/05/18        USD     42.00        USD     1,593          (235,535

Royal Dutch Shell PLC — ADR, Class A

     85          01/05/18        USD     65.01        USD     567          (14,747

Royal Dutch Shell PLC — ADR, Class A

     171          01/10/18        USD     63.80        USD     1,141          (48,852

Exxon Mobil Corp.

     242          01/11/18        USD     83.00        USD     2,024          (28,168

Anadarko Petroleum Corp.

     177          01/12/18        USD     50.50        USD     949          (58,852

Chevron Corp.

     204          01/12/18        USD     121.00        USD     2,554          (95,880

ConocoPhillips

     328          01/12/18        USD     53.00        USD     1,800          (72,816

Devon Energy Corp.

     212          01/12/18        USD     38.00        USD     878          (75,260

EOG Resources, Inc.

     525          01/12/18        USD     104.00        USD     5,665          (233,625

Exxon Mobil Corp.

     121          01/12/18        USD     84.00        USD     1,012          (7,139

Exxon Mobil Corp.

     165          01/12/18        USD     83.50        USD     1,380          (14,272

Halliburton Co.

     380          01/12/18        USD     44.50        USD     1,857          (171,950

Royal Dutch Shell PLC — ADR, Class A

     514          01/12/18        USD     64.00        USD     3,429          (146,490

Schlumberger Ltd.

     206          01/12/18        USD     65.50        USD     1,388          (48,307

Anadarko Petroleum Corp.

     361          01/19/18        USD     50.00        USD     1,936          (139,888

Andeavor

     85          01/19/18        USD     113.00        USD     972          (25,287

Baker Hughes

     209          01/19/18        USD     35.00        USD     661          (1,567

Cabot Oil & Gas Corp.

     250          01/19/18        USD     29.00        USD     715          (13,750

Chevron Corp.

     201          01/19/18        USD     115.00        USD     2,516          (214,065

Cimarex Energy Co.

     162          01/19/18        USD     115.00        USD     1,977          (126,360

Concho Resources, Inc.

     58          01/19/18        USD     145.00        USD     871          (38,570

ConocoPhillips

     307          01/19/18        USD     52.50        USD     1,685          (84,579

Devon Energy Corp.

     273          01/19/18        USD     39.00        USD     1,130          (75,894

EQT Corp.

     241          01/19/18        USD     62.50        USD     1,372          (4,217

Enbridge, Inc.

     85          01/19/18        CAD     48.00        CAD     418          (9,873

Enbridge, Inc.

     220          01/19/18        CAD     50.00        CAD     1,082          (5,688

Encana Corp.

     242          01/19/18        CAD     17.00        CAD     406          (6,931

Encana Corp.

     259          01/19/18        CAD     16.00        CAD     434          (20,089

Exxon Mobil Corp.

     176          01/19/18        USD     82.50        USD     1,472          (30,712

Halliburton Co.

     380          01/19/18        USD     45.00        USD     1,857          (154,850

Halliburton Co.

     327          01/19/18        USD     42.80        USD     1,598          (204,482

Marathon Oil Corp.

     603          01/19/18        USD     15.00        USD     1,021          (120,902

Noble Energy, Inc.

     506          01/19/18        USD     27.50        USD     1,474          (98,670

Patterson — UTI Energy, Inc.

     400          01/19/18        USD     21.00        USD     920          (88,000

Pioneer Natural Resources Co.

     230          01/19/18        USD     160.00        USD     3,976          (315,100

Schlumberger Ltd.

     206          01/19/18        USD     65.00        USD     1,388          (63,757

TransCanada Corp.

     759          01/19/18        CAD     64.00        CAD     4,644          (2,415

Valero Energy Corp.

     230          01/19/18        USD     77.50        USD     2,114          (337,525

Valero Energy Corp.

     195          01/19/18        USD     82.50        USD     1,792          (188,663

Chevron Corp.

     114          01/23/18        USD     118.00        USD     1,427          (84,417

Royal Dutch Shell PLC — ADR, Class A

     172          01/25/18        USD     62.51        USD     1,147          (69,863

Anadarko Petroleum Corp.

     145          01/26/18        USD     48.50        USD     778          (79,025

Andeavor

     113          01/26/18        USD     113.00        USD     1,292          (38,137

Cabot Oil & Gas Corp.

     280          01/26/18        USD     28.00        USD     801          (34,300

Chevron Corp.

     361          01/26/18        USD     120.00        USD     4,519          (212,990

ConocoPhillips

     371          01/26/18        USD     53.00        USD     2,036          (117,236

ConocoPhillips

     104          01/26/18        USD     54.00        USD     571          (18,616

Devon Energy Corp.

     407          01/26/18        USD     39.00        USD     1,685          (118,234

EOG Resources, Inc.

     62          01/26/18        USD     104.00        USD     669          (31,000

Exxon Mobil Corp.

     576          01/26/18        USD     83.50        USD     4,818          (73,152

Marathon Oil Corp.

     698          01/26/18        USD     15.00        USD     1,182          (142,043

Phillips 66

     175          01/26/18        USD     101.00        USD     1,770          (33,250

Pioneer Natural Resources Co.

     29          01/26/18        USD     155.00        USD     501          (53,215

Pioneer Natural Resources Co.

     91          01/26/18        USD     162.50        USD     1,573          (108,745

Royal Dutch Shell PLC — ADR, Class A

     86          01/31/18        USD     64.97        USD     574          (18,244

Marathon Oil Corp.

     81          02/02/18        USD     17.50        USD     137          (3,726

Concho Resources, Inc.

     59          02/05/18        USD     141.00        USD     886          (60,813

Cabot Oil & Gas Corp.

     250          02/16/18        USD     29.00        USD     715          (25,000

Canadian Natural Resources Ltd.

     89          02/16/18        CAD     46.00        CAD     400          (5,912

 

 

26    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Energy and Resources Trust (BGR)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call (continued)

                          

Chevron Corp.

     309          02/16/18        USD     125.00        USD     3,868        $ (96,563

ConocoPhillips

     437          02/16/18        USD     55.00        USD     2,399          (77,786

Noble Energy, Inc.

     505          02/16/18        USD     27.50        USD     1,472          (116,150

Patterson — UTI Energy, Inc.

     184          02/16/18        USD     23.00        USD     423          (24,840

Precision Drilling Corp.

     700          02/16/18        CAD     4.00        CAD     267          (11,973

TransCanada Corp.

     277          02/16/18        CAD     64.00        CAD     1,695          (5,950

Valero Energy Corp.

     120          02/16/18        USD     92.50        USD     1,103          (32,400
                          

 

 

 
                           $ (5,585,696
                          

 

 

 

OTC Options Written

 

Description    Counterparty    Number of
Contracts
    

Expiration

Date

    

Exercise

Price

     Notional
Amount (000)
     Value  

Call

                     

Canadian Natural Resources Ltd.

   Deutsche Bank AG      95,700        01/03/18        CAD       44.40        CAD       4,299      $ (54,471

Chevron Corp.

   Bank of America N.A.      20,000        01/04/18        USD       116.22        USD       2,504        (180,012

Marathon Oil Corp.

   Bank of America N.A.      13,700        01/08/18        USD       16.00        USD       232        (13,704

Encana Corp.

   Royal Bank of Canada      43,500        01/09/18        CAD       13.70        CAD       729        (106,409

BP PLC

   Goldman Sachs International      494,200        01/10/18        GBP       5.00        GBP       2,570        (136,445

Royal Dutch Shell PLC — ADR, Class A

   Goldman Sachs International      7,000        01/10/18        GBP       24.26        GBP       173        (5,318

Total SA

   Goldman Sachs International      42,000        01/10/18        EUR       47.78        EUR       1,932        (944

Enbridge, Inc.

   Morgan Stanley & Co. International PLC      39,200        01/11/18        CAD       49.78        CAD       1,927        (8,269

Encana Corp.

   Deutsche Bank AG      26,000        01/11/18        CAD       15.82        CAD       436        (21,471

Oil Search Ltd.

   Morgan Stanley & Co. International PLC      207,000        01/12/18        AUD       7.58        AUD       1,606        (39,810

Cimarex Energy Co.

   Morgan Stanley & Co. International PLC      9,400        01/16/18        USD       116.60        USD       1,147        (57,328

Eni SpA

   UBS AG      65,500        01/23/18        EUR       13.89        EUR       903        (12,770

BP PLC

   Morgan Stanley & Co. International PLC      384,000        01/25/18        GBP       5.08        GBP       1,997        (82,829

Royal Dutch Shell PLC — ADR, Class A

   Goldman Sachs International      116,700        01/25/18        GBP       24.17        GBP       2,886        (114,652

Baker Hughes

   UBS AG      31,000        01/29/18        USD       32.37        USD       981        (21,616

Devon Energy Corp.

   UBS AG      5,200        01/29/18        USD       38.25        USD       215        (18,125

Cimarex Energy Co.

   Deutsche Bank AG      14,300        01/30/18        USD       114.82        USD       1,745        (116,238

BP PLC

   Goldman Sachs International      301,000        01/31/18        GBP       4.96        GBP       1,565        (106,724

Marathon Oil Corp.

   UBS AG      57,400        01/31/18        USD       15.62        USD       972        (86,042

Patterson-UTI Energy, Inc.

   UBS AG      18,400        01/31/18        USD       21.49        USD       423        (36,586

Oil Search Ltd.

   Citibank N.A.      165,200        02/01/18        AUD       7.44        AUD       1,282        (53,638

Encana Corp.

   Deutsche Bank AG      101,000        02/05/18        CAD       15.25        CAD       1,694        (138,546

BP PLC

   Goldman Sachs International      230,000        02/09/18        GBP       5.13        GBP       1,196        (49,691

Royal Dutch Shell PLC — ADR, Class A

   UBS AG      141,500        02/09/18        USD       64.85        USD       9,439        (338,793

EQT Corp.

   Citibank N.A.      24,300        02/12/18        USD       57.89        USD       1,383        (42,009

Baker Hughes

   Credit Suisse International      37,300        02/13/18        USD       31.66        USD       1,180        (48,767

Encana Corp.

   Deutsche Bank AG      153,000        02/21/18        CAD       14.65        CAD       2,566        (291,851

Eni SpA

   Goldman Sachs International      30,000        02/21/18        EUR       14.23        EUR       414        (4,639

BP PLC

   Goldman Sachs International      230,000        02/27/18        GBP       5.13        GBP       1,196        (45,928
                     

 

 

 
   $ (2,233,625
  

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

                    

Options written

                    

Options written at value

   $      $      $ 7,819,321      $ –—      $ –—      $ –—      $ 7,819,321  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Energy and Resources Trust (BGR)

 

For the year ended December 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Options purchased(a)

   $      $      $ (1,574    $      $      $      $ (1,574

Options written

                   4,664,828                             4,664,828  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $      $      $ 4,663,254      $      $      $      $ 4,663,254  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(a) Options purchased are included in net realized gain (loss) from investments.

  

Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Options written

   $      $      $ (3,002,178    $      $      $      $ (3,002,178
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Options:

 

Average value of option contracts purchased

   $ 2,583 (a) 

Average value of option contracts written

   $ 5,242,482  

 

  (a)  Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter end.  

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Trust’s derivative assets and liabilities (by type) were as follows:

 

      Assets        Liabilities  

Derivative Financial Instruments:

       

Options

   $        $ 7,819,321  
  

 

 

      

 

 

 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

              (5,585,696
  

 

 

      

 

 

 

Total derivative assets and liabilities subject to an MNA

   $        $ 2,233,625  
  

 

 

      

 

 

 

The following table presents the Trust’s derivative assets (and liabilities) by counterparty net of amounts available for offset under an MNA and net of the related collateral received (and pledged) by the Trust:

 

Counterparty   

Derivative
Liabilities
Subject to

an MNA by
Counterparty

       Derivatives
Available
for Offset
       Non-cash
Collateral
Pledged 
(a)
       Cash
Collateral
Pledged
       Net Amount
of Derivative
Liabilities
 (b)
 

Bank of America N.A.

   $ 193,716        $        $        $        $ 193,716  

Citibank N.A.

     95,647                                     95,647  

Credit Suisse International

     48,767                                     48,767  

Deutsche Bank AG

     622,577                   (622,577                  

Goldman Sachs International

     464,341                   (464,341                  

Morgan Stanley & Co. International PLC

     188,236                   (188,236                  

Royal Bank of Canada

     106,409                                     106,409  

UBS AG

     513,932                   (513,932                  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,233,625        $        $ (1,789,086      $        $ 444,539  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes  
  (b)  Net amount represents the net amount payable due to counterparty in the event of default. Net amount may be offset further by the options written receivable/payable on the Statements of Assets and Liabilities.  

 

 

28    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Energy and Resources Trust (BGR)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Common Stocks:

                 

Energy Equipment & Services

   $ 45,887,645        $        $        $ 45,887,645  

Oil, Gas & Consumable Fuels

     363,157,539          66,748,823                   429,906,362  

Short-Term Securities

     3,870,844                            3,870,844  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 412,916,028        $ 66,748,823        $        $ 479,664,851  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities:

                 

Equity contracts

   $ (5,056,110      $ (2,763,211      $        $ (7,819,321
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  Derivative financial instruments are options written, which are shown at value.  

During the year ended December 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  

December 31, 2017

  

BlackRock Enhanced Capital and Income Fund (CII)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 101.0%

 

Airlines — 1.6%  

Delta Air Lines, Inc.(a)

    214,585     $ 12,016,760  
   

 

 

 
Auto Components — 1.1%  

Goodyear Tire & Rubber Co.(a)

    248,901       8,041,991  
   

 

 

 
Banks — 12.8%  

Bank of America Corp.(a)(b)

    776,321       22,916,996  

Citigroup, Inc.(a)

    152,613       11,355,933  

JPMorgan Chase & Co.(a)(b)

    265,036       28,342,950  

Regions Financial Corp.(a)

    340,055       5,876,150  

SunTrust Banks, Inc.(a)

    216,915       14,010,540  

U.S. Bancorp(a)

    275,802       14,777,471  
   

 

 

 
      97,280,040  
Biotechnology — 3.9%  

Biogen, Inc.(a)(c)

    49,466       15,758,384  

Gilead Sciences, Inc.(a)

    195,253       13,987,925  
   

 

 

 
      29,746,309  
Capital Markets — 2.5%  

E*Trade Financial Corp.(a)(c)

    162,426       8,051,457  

Goldman Sachs Group, Inc.(a)

    41,642       10,608,716  
   

 

 

 
      18,660,173  
Chemicals — 2.4%  

DowDuPont, Inc.(a)

    256,230       18,248,701  
   

 

 

 
Communications Equipment — 2.1%  

Cisco Systems, Inc.(a)

    423,773       16,230,506  
   

 

 

 
Consumer Finance — 1.0%  

SLM Corp.(a)(c)

    674,907       7,626,449  
   

 

 

 
Containers & Packaging — 1.8%  

Avery Dennison Corp.

    45,452       5,220,617  

Packaging Corp. of America(a)

    72,448       8,733,606  
   

 

 

 
      13,954,223  
Electric Utilities — 2.4%  

FirstEnergy Corp.(a)

    319,060       9,769,617  

PG&E Corp.

    195,063       8,744,674  
   

 

 

 
      18,514,291  
Electronic Equipment, Instruments & Components — 2.5%  

CDW Corp.(a)

    165,537       11,503,166  

Flex Ltd.(a)(c)

    419,525       7,547,255  
   

 

 

 
      19,050,421  
Food & Staples Retailing — 3.7%  

CVS Health Corp.(a)

    131,135       9,507,288  

Wal-Mart Stores, Inc.(a)

    184,954       18,264,207  
   

 

 

 
      27,771,495  
Health Care Equipment & Supplies — 1.4%  

Baxter International, Inc.(a)

    159,748       10,326,111  
   

 

 

 
Health Care Providers & Services — 6.9%  

Centene Corp.(a)(c)

    84,167       8,490,767  

DaVita, Inc.(a)(c)

    32,140       2,322,115  

Humana, Inc.(a)

    60,029       14,891,394  

Laboratory Corp. of America Holdings(a)(c)

    54,736       8,730,939  

UnitedHealth Group, Inc.(a)

    80,945       17,845,135  
   

 

 

 
      52,280,350  
Hotels, Restaurants & Leisure — 1.4%  

Carnival Corp.(a)

    156,949       10,416,705  
   

 

 

 
Household Durables — 3.0%  

D.R. Horton, Inc.(a)

    293,732       15,000,893  

Lennar Corp., Class A(a)

    56,198       3,553,962  
Security   Shares     Value  
Household Durables (continued)  

NVR, Inc.(c)

    1,191     $ 4,178,290  
   

 

 

 
      22,733,145  
Household Products — 0.2%  

Energizer Holdings, Inc.

    36,579       1,755,060  
   

 

 

 
Industrial Conglomerates — 0.8%  

General Electric Co.(a)

    346,750       6,050,788  
   

 

 

 
Insurance — 1.2%  

Assured Guaranty Ltd.

    22,075       747,680  

Hartford Financial Services Group, Inc.(a)

    143,480       8,075,055  
   

 

 

 
      8,822,735  
Internet Software & Services — 4.5%  

Alphabet, Inc., Class A(a)(c)

    32,477       34,211,272  
   

 

 

 
IT Services — 2.4%  

Amdocs Ltd.(a)

    87,430       5,724,916  

Cognizant Technology Solutions Corp., Class A(a)

    175,242       12,445,687  
   

 

 

 
      18,170,603  
Machinery — 1.4%  

Fortive Corp.(a)

    112,008       8,103,779  

WABCO Holdings, Inc.(a)(c)

    18,276       2,622,606  
   

 

 

 
      10,726,385  
Media — 2.8%  

Comcast Corp., Class A(a)

    520,970       20,864,848  
   

 

 

 
Metals & Mining — 1.0%  

Rio Tinto PLC — ADR(a)

    144,836       7,666,169  
   

 

 

 
Multi-Utilities — 0.6%  

Public Service Enterprise Group, Inc.

    84,331       4,343,047  
   

 

 

 
Oil, Gas & Consumable Fuels — 5.7%  

BP PLC — ADR(a)

    193,710       8,141,631  

Chevron Corp.(a)

    126,467       15,832,404  

Marathon Oil Corp.(a)

    123,939       2,098,287  

Suncor Energy, Inc.(a)

    344,958       12,666,858  

TOTAL SA — ADR(a)

    82,804       4,577,405  
   

 

 

 
      43,316,585  
Pharmaceuticals — 3.8%  

Novo Nordisk A/S — ADR(a)

    148,045       7,945,575  

Pfizer, Inc.(a)

    573,486       20,771,663  
   

 

 

 
      28,717,238  
Professional Services — 0.7%            

Robert Half International, Inc.(a)

    99,881       5,547,391  
   

 

 

 
Road & Rail — 2.1%            

Norfolk Southern Corp.(a)

    107,869       15,630,218  
   

 

 

 
Software — 9.3%            

Activision Blizzard, Inc.(a)

    182,800       11,574,896  

Dell Technologies, Inc., Class V(a)(c)

    111,063       9,027,201  

Microsoft Corp.(a)

    388,649       33,245,035  

Oracle Corp.(a)

    356,269       16,844,398  
   

 

 

 
      70,691,530  
Specialty Retail — 6.0%            

Home Depot, Inc.(a)

    98,936       18,751,340  

Lowe’s Cos., Inc.(a)

    176,344       16,389,411  

Urban Outfitters, Inc.(a)(c)

    303,473       10,639,764  
 

 

 

 
    45,780,515  
Technology Hardware, Storage & Peripherals — 5.5%        

Apple, Inc.(a)(b)

    243,966       41,286,366  
   

 

 

 
Tobacco — 2.5%        

Altria Group, Inc.(a)

    267,235       19,083,251  
 

 

 

 

Total Long-Term Investments — 101.0%
(Cost — $580,255,041)

 

    765,561,671  
 

 

 

 
 

 

 

30    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Enhanced Capital and Income Fund (CII)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities — 0.4%

 

 

BlackRock Liquidity Funds, T-Fund, Institutional Class,
1.18%(d)(e)

    3,142,974     $ 3,142,974  
   

 

 

 

Total Short-Term Securities — 0.4%
(Cost — $3,142,974)

 

    3,142,974  
 

 

 

 

Total Investments Before Options Written — 101.4%
(Cost — $583,398,015)

 

    768,704,645  
 

 

 

 

Options Written — (1.3)%
(Premiums Received — $7,775,720)

 

    (9,801,813
 

 

 

 

Total Investments, Net of Options Written — 100.1%
(Cost — $575,622,295)

 

    758,902,832  

Liabilities in Excess of Other Assets — (0.1)%

 

    (502,563
 

 

 

 

Net Assets — 100.0%

 

  $ 758,400,269  
 

 

 

 

 

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(b)  All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives.
(c) Non-income producing security.
(d) Annualized 7-day yield as of period end.
 
(e) During the year ended December 31, 2017, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
12/31/16
     Net
Activity
     Shares
Held at
12/31/17
     Value at
12/31/17
     Income      Net
Realized

Gain (Loss) (a)
     Change in
Unrealized

Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, T-Fund, Institutional Class

     24,715,046        (21,572,072      3,142,974      $ 3,142,974      $ 70,831      $ 15      $  

SL Liquidity Series, LLC, Money Market Series

     695,518        (695,518                    1,191 (b)              (54
              

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,142,974      $ 72,022      $ 15      $ (54
              

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes net capital gain distributions, if applicable.  
  (b) Represents securities lending income earned from the reinvestments of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.  

For Trust compliance purposes, the Trust’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call

                          

SunTrust Banks, Inc.

     419          01/03/18        USD     60.51        USD     2,706        $ (172,238

Comcast Corp., Class A

     118          01/04/18        USD     37.00        USD     473          (34,271

Activision Blizzard, Inc.

     150          01/05/18        USD     65.50        USD     950          (1,050

Apple, Inc.

     68          01/05/18        USD     175.00        USD     1,151          (850

Apple, Inc.

     69          01/05/18        USD     177.50        USD     1,168          (586

Bank of America Corp.

     585          01/05/18        USD     28.50        USD     1,727          (62,595

Baxter International, Inc.

     104          01/05/18        USD     66.00        USD     672          (624

Cognizant Technology Solutions Corp., Class A

     302          01/05/18        USD     74.00        USD     2,145          (1,510

Comcast Corp., Class A

     114          01/05/18        USD     39.50        USD     457          (8,037

Delta Air Lines, Inc.

     291          01/05/18        USD     55.00        USD     1,630          (38,412

E*Trade Financial Corp.

     507          01/05/18        USD     48.50        USD     2,513          (76,304

General Electric Co.

     72          01/05/18        USD     19.00        USD     126          (144

General Electric Co.

     124          01/05/18        USD     18.50        USD     216          (186

Goodyear Tire & Rubber Co.

     372          01/05/18        USD     32.50        USD     1,202          (8,370

Home Depot, Inc.

     360          01/05/18        USD     177.50        USD     6,823          (440,100

Microsoft Corp.

     121          01/05/18        USD     84.00        USD     1,035          (20,993

Oracle Corp.

     518          01/05/18        USD     50.00        USD     2,449          (518

Suncor Energy, Inc.

     56          01/05/18        USD     35.50        USD     206          (7,224

Suncor Energy, Inc.

     216          01/05/18        USD     35.00        USD     793          (38,232

U.S. Bancorp

     206          01/05/18        USD     56.00        USD     1,104          (618

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Enhanced Capital and Income Fund (CII)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call (continued)

                          

U.S. Bancorp

     206          01/05/18        USD     55.00        USD     1,104        $ (927

UnitedHealth Group, Inc.

     70          01/05/18        USD     227.50        USD     1,543          (525

Urban Outfitters, Inc.

     334          01/05/18        USD     32.50        USD     1,171          (90,180

Pfizer, Inc.

     350          01/09/18        USD     35.51        USD     1,268          (30,046

Bank of America Corp.

     485          01/11/18        USD     27.82        USD     1,432          (86,243

CDW Corp.

     128          01/11/18        USD     67.25        USD     889          (35,675

JPMorgan Chase & Co.

     123          01/11/18        USD     99.51        USD     1,315          (85,340

Oracle Corp.

     72          01/11/18        USD     50.51        USD     340          (30

Activision Blizzard, Inc.

     82          01/12/18        USD     64.00        USD     519          (7,339

Activision Blizzard, Inc.

     150          01/12/18        USD     66.50        USD     950          (3,300

Alphabet, Inc., Class A

     18          01/12/18        USD     1,045.00        USD     1,896          (32,130

Apple, Inc.

     91          01/12/18        USD     180.00        USD     1,540          (955

BP PLC — ADR

     76          01/12/18        USD     40.00        USD     319          (16,036

Bank of America Corp.

     490          01/12/18        USD     29.00        USD     1,446          (38,955

Baxter International, Inc.

     142          01/12/18        USD     64.50        USD     918          (12,851

Biogen, Inc.

     56          01/12/18        USD     325.00        USD     1,784          (17,360

Chevron Corp.

     114          01/12/18        USD     121.00        USD     1,427          (53,580

Cisco Systems, Inc.

     361          01/12/18        USD     38.00        USD     1,383          (18,050

Citigroup, Inc.

     31          01/12/18        USD     77.00        USD     231          (589

Citigroup, Inc.

     315          01/12/18        USD     76.50        USD     2,344          (8,347

Comcast Corp., Class A

     114          01/12/18        USD     39.50        USD     457          (11,343

DowDuPont, Inc.

     369          01/12/18        USD     71.50        USD     2,628          (27,491

Flex Ltd.

     343          01/12/18        USD     18.50        USD     617          (3,601

Flex Ltd.

     343          01/12/18        USD     18.00        USD     617          (10,804

General Electric Co.

     87          01/12/18        USD     18.50        USD     152          (348

Gilead Sciences, Inc.

     63          01/12/18        USD     77.00        USD     451          (819

Gilead Sciences, Inc.

     248          01/12/18        USD     75.50        USD     1,777          (4,464

Hartford Financial Services Group

     142          01/12/18        USD     56.00        USD     799          (13,632

Humana, Inc.

     76          01/12/18        USD     260.00        USD     1,885          (4,560

Microsoft Corp.

     242          01/12/18        USD     84.50        USD     2,070          (41,866

Suncor Energy, Inc.

     56          01/12/18        USD     35.50        USD     206          (7,644

Suncor Energy, Inc.

     216          01/12/18        USD     35.00        USD     793          (40,068

U.S. Bancorp

     428          01/12/18        USD     56.00        USD     2,293          (2,996

Urban Outfitters, Inc.

     82          01/12/18        USD     32.50        USD     287          (24,190

Microsoft Corp.

     492          01/16/18        USD     83.95        USD     4,209          (113,127

Novo Nordisk A/S — ADR

     83          01/17/18        USD     52.01        USD     445          (16,126

Activision Blizzard, Inc.

     210          01/19/18        USD     65.00        USD     1,330          (15,750

Activision Blizzard, Inc.

     125          01/19/18        USD     67.50        USD     792          (2,937

Alphabet, Inc., Class A

     73          01/19/18        USD     1,060.00        USD     7,690          (91,250

Altria Group, Inc.

     478          01/19/18        USD     72.50        USD     3,413          (33,699

Amdocs Ltd.

     270          01/19/18        USD     65.00        USD     1,768          (32,400

Apple, Inc.

     46          01/19/18        USD     180.00        USD     778          (1,104

Apple, Inc.

     426          01/19/18        USD     175.00        USD     7,209          (34,080

BP PLC — ADR

     89          01/19/18        USD     41.00        USD     374          (11,214

Bank of America Corp.

     447          01/19/18        USD     28.00        USD     1,320          (76,661

Bank of America Corp.

     585          01/19/18        USD     29.00        USD     1,727          (55,283

Baxter International, Inc.

     122          01/19/18        USD     65.00        USD     789          (9,333

Biogen, Inc.

     119          01/19/18        USD     320.00        USD     3,791          (74,970

CDW Corp.

     231          01/19/18        USD     70.00        USD     1,605          (25,410

CVS Health Corp.

     351          01/19/18        USD     75.00        USD     2,545          (18,252

Carnival Corp.

     220          01/19/18        USD     67.00        USD     1,460          (17,050

Centene Corp.

     231          01/19/18        USD     110.00        USD     2,330          (5,775

Chevron Corp.

     157          01/19/18        USD     115.00        USD     1,965          (167,205

Cisco Systems, Inc.

     309          01/19/18        USD     37.00        USD     1,183          (42,488

Cisco Systems, Inc.

     343          01/19/18        USD     39.00        USD     1,314          (4,973

Citigroup, Inc.

     143          01/19/18        USD     80.00        USD     1,064          (1,859

Citigroup, Inc.

     131          01/19/18        USD     72.50        USD     975          (34,977

Cognizant Technology Solutions Corp., Class A

     182          01/19/18        USD     77.50        USD     1,293          (910

Comcast Corp., Class A

     114          01/19/18        USD     40.00        USD     457          (9,234

Comcast Corp., Class A

     382          01/19/18        USD     38.75        USD     1,530          (60,547

D.R. Horton, Inc.

     461          01/19/18        USD     50.60        USD     2,354          (65,060

 

 

32    2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Enhanced Capital and Income Fund (CII)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call (continued)

                          

D.R. Horton, Inc.

     110          01/19/18        USD     48.00        USD     562        $ (37,400

DaVita, Inc.

     177          01/19/18        USD     65.00        USD     1,279          (134,520

Dell Technologies, Inc., Class V

     388          01/19/18        USD     81.25        USD     3,154          (70,109

Delta Air Lines, Inc.

     407          01/19/18        USD     57.50        USD     2,279          (30,118

DowDuPont, Inc.

     386          01/19/18        USD     73.35        USD     2,749          (11,454

DowDuPont, Inc.

     151          01/19/18        USD     72.50        USD     1,075          (7,776

DowDuPont, Inc.

     155          01/19/18        USD     70.00        USD     1,104          (30,070

E*Trade Financial Corp.

     163          01/19/18        USD     51.00        USD     808          (7,987

FirstEnergy Corp.

     943          01/19/18        USD     35.00        USD     2,887          (4,715

Flex Ltd.

     1,257          01/19/18        USD     18.27        USD     2,261          (28,937

Flex Ltd.

     113          01/19/18        USD     19.00        USD     203          (565

Fortive Corp.

     504          01/19/18        USD     75.00        USD     3,646          (10,080

General Electric Co.

     202          01/19/18        USD     19.00        USD     352          (909

Gilead Sciences, Inc.

     539          01/19/18        USD     77.50        USD     3,861          (9,163

Goldman Sachs Group, Inc.

     83          01/19/18        USD     250.00        USD     2,115          (68,060

Goodyear Tire & Rubber Co.

     422          01/19/18        USD     30.00        USD     1,363          (104,445

Hartford Financial Services Group

     322          01/19/18        USD     57.85        USD     1,812          (14,923

Home Depot, Inc.

     185          01/19/18        USD     180.00        USD     3,506          (189,163

Humana, Inc.

     48          01/19/18        USD     250.00        USD     1,191          (16,800

JPMorgan Chase & Co.

     101          01/19/18        USD     100.95        USD     1,080          (56,876

JPMorgan Chase & Co.

     228          01/19/18        USD     110.00        USD     2,438          (14,934

Laboratory Corp. of America Holdings

     123          01/19/18        USD     160.00        USD     1,962          (30,750

Lennar Corp., Class A

     154          01/19/18        USD     60.00        USD     974          (58,520

Lowe’s Cos., Inc.

     561          01/19/18        USD     80.00        USD     5,214          (729,300

Marathon Oil Corp.

     166          01/19/18        USD     15.00        USD     281          (33,283

Microsoft Corp.

     308          01/19/18        USD     85.00        USD     2,635          (47,278

Norfolk Southern Corp.

     148          01/19/18        USD     145.00        USD     2,145          (40,700

Oracle Corp.

     620          01/19/18        USD     50.00        USD     2,931          (2,790

Packaging Corp. of America

     119          01/19/18        USD     115.00        USD     1,435          (74,375

Pfizer, Inc.

     350          01/19/18        USD     36.00        USD     1,268          (19,775

Regions Financial Corp.

     368          01/19/18        USD     16.00        USD     636          (51,704

Regions Financial Corp.

     400          01/19/18        USD     17.00        USD     691          (23,800

Rio Tinto PLC — ADR

     48          01/19/18        USD     50.00        USD     254          (15,600

Robert Half International, Inc.

     281          01/19/18        USD     55.00        USD     1,561          (41,448

SLM Corp.

     360          01/19/18        USD     11.00        USD     407          (20,340

SLM Corp.

     469          01/19/18        USD     12.00        USD     530          (7,035

SunTrust Banks, Inc.

     376          01/19/18        USD     60.00        USD     2,429          (185,180

SunTrust Banks, Inc.

     398          01/19/18        USD     65.00        USD     2,571          (49,352

Suncor Energy, Inc.

     158          01/19/18        USD     36.00        USD     580          (16,669

TOTAL SA — ADR

     312          01/19/18        USD     55.00        USD     1,725          (28,080

U.S. Bancorp

     155          01/19/18        USD     52.50        USD     830          (25,343

UnitedHealth Group, Inc.

     62          01/19/18        USD     220.00        USD     1,367          (33,170

Urban Outfitters, Inc.

     300          01/19/18        USD     26.00        USD     1,052          (283,500

Urban Outfitters, Inc.

     317          01/19/18        USD     31.00        USD     1,111          (141,065

WABCO Holdings, Inc.

     100          01/19/18        USD     145.00        USD     1,435          (18,250

Wal-Mart Stores, Inc.

     152          01/19/18        USD     97.50        USD     1,501          (37,088

Wal-Mart Stores, Inc.

     302          01/19/18        USD     100.00        USD     2,982          (32,012

Chevron Corp.

     54          01/23/18        USD     118.00        USD     676          (39,987

Activision Blizzard, Inc.

     143          01/26/18        USD     65.00        USD     905          (14,300

Altria Group, Inc.

     542          01/26/18        USD     72.50        USD     3,870          (50,677

Apple, Inc.

     228          01/26/18        USD     177.50        USD     3,858          (17,670

Apple, Inc.

     154          01/26/18        USD     180.00        USD     2,606          (7,084

Bank of America Corp.

     125          01/26/18        USD     29.50        USD     369          (9,625

Baxter International, Inc.

     95          01/26/18        USD     65.50        USD     614          (7,220

Carnival Corp.

     424          01/26/18        USD     66.50        USD     2,814          (55,120

Chevron Corp.

     154          01/26/18        USD     120.00        USD     1,928          (90,860

Cisco Systems, Inc.

     343          01/26/18        USD     38.50        USD     1,314          (12,862

Citigroup, Inc.

     219          01/26/18        USD     75.00        USD     1,630          (31,317

Cognizant Technology Solutions Corp., Class A

     255          01/26/18        USD     72.50        USD     1,811          (15,937

Delta Air Lines, Inc.

     500          01/26/18        USD     55.00        USD     2,800          (108,500

DowDuPont, Inc.

     70          01/26/18        USD     72.00        USD     499          (6,475

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments  (continued)

December 31, 2017

  

BlackRock Enhanced Capital and Income Fund (CII)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts
       Expiration
Date
       Exercise
Price
       Notional
Amount (000)
       Value  

Call (continued)

                          

DowDuPont, Inc.

     15          01/26/18        USD     71.50        USD     107        $ (1,702

E*Trade Financial Corp.

     81          01/26/18        USD     50.00        USD     402          (10,368

E*Trade Financial Corp.

     142          01/26/18        USD     49.00        USD     704          (24,566

General Electric Co.

     238          01/26/18        USD     18.50        USD     415          (4,403

General Electric Co.

     592          01/26/18        USD     18.00        USD     1,033          (18,648

Goldman Sachs Group, Inc.

     8          01/26/18        USD     260.00        USD     204          (3,060

Goodyear Tire & Rubber Co.

     600          01/26/18        USD     32.50        USD     1,939          (42,000

Hartford Financial Services Group

     183          01/26/18        USD     56.00        USD     1,030          (22,966

JPMorgan Chase & Co.

     91          01/26/18        USD     105.00        USD     973          (28,529

JPMorgan Chase & Co.

     228          01/26/18        USD     107.00        USD     2,438          (46,398

Lowe’s Cos., Inc.

     112          01/26/18        USD     84.00        USD     1,041          (104,720

Lowe’s Cos., Inc.

     296          01/26/18        USD     87.00        USD     2,751          (191,660

Marathon Oil Corp.

     181          01/26/18        USD     15.00        USD     306          (36,834

Norfolk Southern Corp.

     137          01/26/18        USD     142.00        USD     1,985          (78,775

Oracle Corp.

     157          01/26/18        USD     51.00        USD     742          (628

Oracle Corp.

     132          01/26/18        USD     48.00        USD     624          (4,752

Pfizer, Inc.

     114          01/26/18        USD     36.50        USD     413          (4,389

U.S. Bancorp

     372          01/26/18        USD     56.00        USD     1,993          (8,370

U.S. Bancorp

     72          01/26/18        USD     55.00        USD     386          (3,240

Urban Outfitters, Inc.

     330          01/26/18        USD     35.00        USD     1,157          (47,850

Urban Outfitters, Inc.

     329          01/26/18        USD     34.00        USD     1,153          (66,623

Microsoft Corp.

     492          01/29/18        USD     83.95        USD     4,209          (131,908

UnitedHealth Group, Inc.

     157          01/29/18        USD     222.00        USD     3,461          (57,158

Activision Blizzard, Inc.

     79          02/02/18        USD     65.50        USD     500          (7,307

Apple, Inc.

     52          02/02/18        USD     182.50        USD     880          (5,902

Comcast Corp., Class A

     1,000          02/02/18        USD     41.50        USD     4,005          (58,500

Marathon Oil Corp.

     77          02/02/18        USD     17.50        USD     130          (3,542

Norfolk Southern Corp.

     92          02/02/18        USD     145.00        USD     1,333          (39,100

Oracle Corp.

     230          02/02/18    &n