N-Q 1 d592855dnq.htm BLACKROCK HEALTH SCIENCES TRUST BlackRock Health Sciences Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21702

Name of Fund:    BlackRock Health Sciences Trust (BME)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Health Sciences 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: 10/31/2013

Date of reporting period: 07/31/2013

Item 1 – Schedule of Investments

Schedule of Investments July 31, 2013 (Unaudited)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   
  

 

Common Stocks    Shares      Value  

Biotechnology — 29.4%

      

ACADIA Pharmaceuticals, Inc. (a)(b)

      74,495       $ 1,467,552   

Acorda Therapeutics, Inc. (a)(b)

      57,500         2,183,275   

Aegerion Pharmaceuticals, Inc. (a)(b)

      14,400         1,318,896   

Agios Pharmaceuticals, Inc. (a)

      5,400         157,464   

Alexion Pharmaceuticals, Inc. (a)(b)

      20,460         2,378,066   

Alkermes PLC (a)(b)

      60,700         2,038,306   

Alnylam Pharmaceuticals, Inc. (a)(b)

      54,436         2,513,310   

Amgen, Inc. (b)

      85,900         9,302,111   

Biogen Idec, Inc. (a)(b)

      14,700         3,206,511   

BioMarin Pharmaceutical, Inc. (a)(b)

      44,500         2,876,925   

Biota Pharmaceuticals, Inc.

      38,100         154,305   

Bluebird Bio, Inc. (a)

      9,300         289,509   

Celgene Corp. (a)(b)

      89,743         13,179,657   

Celldex Therapeutics, Inc. (a)(b)

      64,700         1,325,056   

Clovis Oncology, Inc. (a)

      14,900         1,160,412   

Conatus Pharmaceuticals, Inc. (a)

      18,200         165,984   

Dyax Corp. (a)

      42,284         170,404   

Esperion Therapeutics, Inc. (a)

      13,300         237,272   

Exelixis, Inc. (a)(b)

      68,300         346,281   

Gilead Sciences, Inc. (a)(b)

      152,521         9,372,415   

Infinity Pharmaceuticals, Inc. (a)

      72,800         1,541,904   

InterMune, Inc. (a)(b)

      81,300         1,260,963   

Isis Pharmaceuticals, Inc. (a)(b)

      57,850         1,668,973   

Medivation, Inc. (a)(b)

      14,600         844,902   

Momenta Pharmaceuticals, Inc. (a)(b)

      26,300         453,938   

Pharmacyclics, Inc. (a)(b)

      12,800         1,390,464   

Prosensa Holding NV (a)

      9,700         298,760   

Protalix BioTherapeutics, Inc. (a)

      122,100         653,235   

PTC Therapeutics, Inc. (a)

      10,300         161,298   

Puma Biotechnology, Inc. (a)

      22,800         1,165,308   

Quintiles Transnational Holdings, Inc. (a)

      11,900         533,715   

Regeneron Pharmaceuticals, Inc. (a)(b)

      18,858         5,092,792   

Seattle Genetics, Inc. (a)(b)

      85,267         3,455,019   

Synageva BioPharma Corp. (a)(b)

      8,897         427,946   

Ultragenyx Pharmaceutical, Inc.
(Acquired 12/18/12, cost $384,116) (a)(c)

      138,700         384,116   

Verastem, Inc. (a)

      21,800         333,104   

Vertex Pharmaceuticals, Inc. (a)(b)

      42,105         3,359,979   
     

 

 

  
                76,870,127   

Diversified Consumer Services — 1.0%

      

Service Corp. International

      134,600         2,553,362   

Food & Staples Retailing — 1.7%

      

Brazil Pharma SA (a)

      58,000         252,456   

CVS Caremark Corp. (b)

      69,200         4,255,108   
     

 

 

  
                4,507,564   

Health Care Equipment & Supplies — 17.2%

      

Baxter International, Inc. (b)

      60,800         4,440,832   

Becton Dickinson and Co. (b)

      25,300         2,624,116   

Boston Scientific Corp. (a)

      299,500         3,270,540   

CareFusion Corp. (a)(b)

      57,800         2,229,346   
Common Stocks    Shares      Value  

Health Care Equipment & Supplies (concluded)

  

   

Coloplast A/S, Class B

      29,341       $ 1,715,147   

The Cooper Cos., Inc. (b)

      36,200         4,610,070   

Covidien PLC (b)

      41,000         2,526,830   

DENTSPLY International, Inc. (b)

      50,400         2,161,152   

Edwards Lifesciences Corp. (a)(b)

      19,400         1,384,772   

Given Imaging Ltd. (a)

      15,229         236,354   

Intuitive Surgical, Inc. (a)

      2,800         1,086,400   

Medtronic, Inc. (b)

      117,200         6,474,128   

Sirona Dental Systems, Inc. (a)

      41,100         2,901,660   

Stryker Corp. (b)

      86,200         6,073,652   

Teleflex, Inc. (b)

      25,200         2,001,636   

Zimmer Holdings, Inc. (b)

      13,500         1,126,980   
     

 

 

  
                44,863,615   

Health Care Providers & Services — 11.6%

  

   

Aetna, Inc. (b)

      59,511         3,818,821   

AmerisourceBergen Corp. (b)

      18,500         1,077,995   

Capital Senior Living Corp. (a)(b)

      33,664         775,618   

Cardinal Health, Inc. (b)

      34,326         1,719,389   

Catamaran Corp. (a)(b)

      36,200         1,911,360   

Cigna Corp. (b)

      43,800         3,408,954   

Express Scripts Holding Co. (a)(b)

      35,776         2,345,117   

HCA Holdings, Inc. (b)

      60,200         2,347,800   

McKesson Corp. (b)

      27,600         3,385,416   

UnitedHealth Group, Inc. (b)

      84,734         6,172,872   

Universal Health Services, Inc., Class B

      49,100         3,434,545   
     

 

 

  
                30,397,887   

Health Care Technology — 0.9%

      

Cerner Corp. (a)(b)

      48,700         2,386,300   

Life Sciences Tools & Services — 4.7%

      

ICON PLC (a)

      46,831         1,836,712   

Illumina, Inc. (a)(b)

      45,100         3,599,882   

Life Technologies Corp. (a)

      5,200         387,920   

Morphosys AG (a)

      13,900         948,899   

Thermo Fisher Scientific, Inc. (b)

      28,700         2,614,857   

Waters Corp. (a)(b)

      27,615         2,787,458   
     

 

 

  
                12,175,728   

Pharmaceuticals — 33.8%

      

AbbVie, Inc. (b)

      162,984         7,412,512   

Actavis, Inc. (a)(b)

      14,600         1,960,342   

Allergan, Inc. (b)

      21,200         1,931,744   

Bayer AG

      41,900         4,870,258   

Bristol-Myers Squibb Co. (b)

      189,300         8,185,332   

Chugai Pharmaceutical Co. Ltd.

      53,200         1,054,856   

Eli Lilly & Co. (b)

      88,800         4,716,168   

Johnson & Johnson (b)

      143,770         13,442,495   

Merck & Co., Inc. (b)

      121,100         5,833,387   

Mylan, Inc. (a)(b)

      32,500         1,090,700   

Novartis AG

      122,000         8,770,193   

Ono Pharmaceutical Co. Ltd.

      23,100         1,480,539   
 
Portfolio Abbreviations        
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:  

ADR     American Depositary Receipt

  

EUR     Euro

 

BRL     Brazil Real

  

JPY      Japanese Yen

 

CHF     Swiss Franc

  

USD     US Dollar

 

DKK     Danish Krone

  

 

          JULY 31, 2013    1

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Pharmaceuticals (concluded)

      

Pfizer, Inc. (b)

      349,200       $ 10,207,116   

Roche Holding AG

      32,400         7,973,283   

Sanofi

      25,100         2,627,569   

Shire PLC — ADR (b)

      17,700         1,935,495   

Teva Pharmaceutical Industries Ltd. — ADR (b)

      35,800         1,421,260   

Valeant Pharmaceuticals International, Inc. (a)(b)

      29,800         2,789,280   

Zoetis, Inc. (b)

      25,600         763,136   
     

 

 

  
                88,465,665   

Total Long-Term Investments

(Cost — $194,248,509) — 100.3%

               262,220,248   
     
                  
Short-Term Securities    Shares      Value  

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.04% (d)(e)

      1,620,106       $ 1,620,106   

Total Short-Term Securities

(Cost — $1,620,106) — 0.6%

               1,620,106   

Total Investments Before Options Written

(Cost — $195,868,615*) — 100.9%

               263,840,354   
     
Options Written                

(Premiums Received — $2,496,604) — (1.5)%

  

      (3,923,942 ) 

Total Investments Net of Options Written — 99.4%

         259,916,412   

Other Assets Less Liabilities — 0.6%

         1,605,060   
     

 

 

  

Net Assets — 100.0%

       $ 261,521,472   
     

 

 

  
 
Notes to Schedule of Investments         

 

*   As of July 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

   

 

Tax cost

    $ 198,686,225   
  

 

 

  

Gross unrealized appreciation

    $ 68,756,323   

Gross unrealized depreciation

      (3,602,194 ) 
  

 

 

  

Net unrealized appreciation

    $ 65,154,129   
  

 

 

  

 

(a) Non-income producing security.

 

(b) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(c) Restricted security as to resale. As of July 31, 2013 the Trust held 0.15% of its net assets, with a current market value of $384,116 and an original cost of $384,116, in this security.

 

(d) Represents the current yield as of report date.

 

(e) Investments in issuers considered to be an affiliate of the Trust during the period ended July 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

Affiliate   

Shares/
Beneficial
Interest

Held at
October 31,
2012

     

Net

Activity

     Shares/
Beneficial
Interest
Held at
July 31,
2013		      Income      Realized
Gain		  

BlackRock Liquidity Funds, TempFund, Institutional Class

      4,024,895         (2,404,789 )      1,620,106       $ 5,651       $ 44   

BlackRock Liquidity Series, LLC Money Market Series

    $ 4,185,923       $ (4,185,923 )      —       $ 538         —   

 

Ÿ  

Foreign currency exchange contracts as of July 31, 2013 were as follows:

 

Currency
Purchased		        Currency
Sold		     Counterparty   Settlement
Date		       

Unrealized

Appreciation

  
USD        34,774           JPY           3,400,000      Citibank N.A.     8/02/13         $ 49   

 

Ÿ  

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 Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of July 31, 2013 were as follows:

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Teleflex, Inc.

      Call         USD         78.80       8/05/13      83       $ (11,086 ) 

Celgene Corp.

      Call         USD         124.00       8/17/13      125         (285,917 ) 

ACADIA Pharmaceuticals, Inc.

      Call         USD         19.00       8/19/13      315         (40,950 ) 

 

2         JULY 31, 2013     

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Exchange-traded options written as of July 31, 2013 were as follows: (continued)

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Acorda Therapeutics, Inc.

      Call         USD         38.00       8/19/13      200       $ (30,000 ) 

Actavis, Inc.

      Call         USD         130.00       8/19/13      45         (25,875 ) 

Aegerion Pharmaceuticals, Inc.

      Call         USD         85.00       8/19/13      50         (42,250 ) 

Aetna, Inc.

      Call         USD         65.00       8/19/13      120         (10,140 ) 

Alexion Pharmaceuticals, Inc.

      Call         USD         95.00       8/19/13      45         (96,975 ) 

Alexion Pharmaceuticals, Inc.

      Call         USD         100.00       8/19/13      9         (14,940 ) 

Alexion Pharmaceuticals, Inc.

      Call         USD         110.00       8/19/13      13         (10,140 ) 

Alkermes PLC

      Call         USD         34.00       8/19/13      176         (15,400 ) 

Alnylam Pharmaceuticals, Inc.

      Call         USD         35.00       8/19/13      215         (240,800 ) 

AmerisourceBergen Corp.

      Call         USD         60.00       8/19/13      69         (1,380 ) 

Amgen, Inc.

      Call         USD         105.00       8/19/13      300         (121,500 ) 

Biogen Idec, Inc.

      Call         USD         225.00       8/19/13      50         (18,500 ) 

CareFusion Corp.

      Call         USD         39.00       8/19/13      200         (22,500 ) 

Catamaran Corp.

      Call         USD         55.00       8/19/13      65         (6,825 ) 

Celgene Corp.

      Call         USD         140.00       8/19/13      165         (135,300 ) 

Cerner Corp.

      Call         USD         52.50       8/19/13      90         (675 ) 

Edwards Lifesciences Corp.

      Call         USD         72.50       8/19/13      35         (3,850 ) 

Eli Lilly & Co.

      Call         USD         52.50       8/19/13      157         (19,468 ) 

Gilead Sciences, Inc.

      Call         USD         50.00       8/19/13      205         (235,750 ) 

Gilead Sciences, Inc.

      Call         USD         52.50       8/19/13      205         (186,038 ) 

HCA Holdings, Inc.

      Call         USD         38.00       8/19/13      209         (32,918 ) 

HCA Holdings, Inc.

      Call         USD         39.00       8/19/13      94         (9,165 ) 

Illumina, Inc.

      Call         USD         75.00       8/19/13      125         (70,000 ) 

Illumina, Inc.

      Call         USD         77.50       8/19/13      30         (11,100 ) 

InterMune, Inc.

      Call         USD         13.00       8/19/13      220         (57,750 ) 

InterMune, Inc.

      Call         USD         14.00       8/19/13      56         (9,856 ) 

Isis Pharmaceuticals, Inc.

      Call         USD         35.00       8/19/13      190         (5,224 ) 

Johnson & Johnson

      Call         USD         92.50       8/19/13      134         (22,378 ) 

McKesson Corp.

      Call         USD         120.00       8/19/13      88         (31,240 ) 

Medivation, Inc.

      Call         USD         60.00       8/19/13      45         (9,630 ) 

Medtronic, Inc.

      Call         USD         52.50       8/19/13      85         (24,268 ) 

Merck & Co., Inc.

      Call         USD         47.00       8/19/13      93         (12,834 ) 

Merck & Co., Inc.

      Call         USD         48.00       8/19/13      40         (2,760 ) 

Momenta Pharmaceuticals, Inc.

      Call         USD         16.00       8/19/13      90         (14,625 ) 

Pharmacyclics, Inc.

      Call         USD         90.00       8/19/13      24         (46,440 ) 

Regeneron Pharmaceuticals, Inc.

      Call         USD         260.00       8/19/13      34         (57,630 ) 

Stryker Corp.

      Call         USD         70.00       8/19/13      285         (34,200 ) 

Synageva BioPharma Corp.

      Call         USD         45.00       8/19/13      28         (10,640 ) 

Synageva BioPharma Corp.

      Call         USD         50.00       8/19/13      34         (3,230 ) 

Valeant Pharmaceuticals International, Inc.

      Call         USD         92.50       8/19/13      100         (35,500 ) 

Vertex Pharmaceuticals, Inc.

      Call         USD         87.50       8/19/13      135         (7,088 ) 

Waters Corp.

      Call         USD         100.00       8/19/13      117         (26,617 ) 

Baxter International, Inc.

      Call         USD         73.50       8/22/13      210         (18,844 ) 

Seattle Genetics, Inc.

      Call         USD         39.00       8/22/13      365         (112,833 ) 

Capital Senior Living Corp.

      Call         USD         27.00       9/09/13      160         (1,813 ) 

Celldex Therapeutics, Inc.

      Call         USD         20.00       9/09/13      240         (53,495 ) 

The Cooper Cos., Inc.

      Call         USD         127.00       9/10/13      120         (56,085 ) 

BioMarin Pharmaceutical, Inc.

      Call         USD         67.50       9/16/13      139         (27,769 ) 

Bristol-Myers Squibb Co.

      Call         USD         45.00       9/16/13      36         (1,944 ) 

Cigna Corp.

      Call         USD         77.75       9/16/13      167         (43,782 ) 

 

          JULY 31, 2013    3

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Exchange-Traded options written as of July 31, 2013 were as follows: (concluded)

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Covidien PLC

      Call         USD         59.00       9/16/13      135       $ (51,826 ) 

Johnson & Johnson

      Call         USD         93.50       9/21/13      220         (35,327 ) 

Pfizer, Inc.

      Call         USD         29.55       9/21/13      250         (13,180 ) 

CVS Caremark Corp.

      Call         USD         61.50       9/22/13      230         (29,439 ) 

AbbVie, Inc.

      Call         USD         45.00       9/23/13      41         (7,278 ) 

Allergan, Inc.

      Call         USD         95.00       9/23/13      72         (9,720 ) 

Becton Dickinson and Co.

      Call         USD         105.00       9/23/13      66         (11,055 ) 

Cardinal Health, Inc.

      Call         USD         49.00       9/23/13      102         (20,145 ) 

Cerner Corp.

      Call         USD         50.00       9/23/13      140         (16,800 ) 

Eli Lilly & Co.

      Call         USD         52.50       9/23/13      157         (25,512 ) 

Express Scripts Holding Co.

      Call         USD         67.50       9/23/13      118         (10,915 ) 

Gilead Sciences, Inc.

      Call         USD         60.00       9/23/13      60         (20,550 ) 

Gilead Sciences, Inc.

      Call         USD         62.50       9/23/13      50         (10,525 ) 

Merck & Co., Inc.

      Call         USD         48.00       9/23/13      153         (16,754 ) 

Mylan, Inc.

      Call         USD         35.00       9/23/13      105         (6,982 ) 

Regeneron Pharmaceuticals, Inc.

      Call         USD         310.00       9/23/13      27         (14,985 ) 

Shire PLC - ADR

      Call         USD         110.00       9/23/13      22         (8,140 ) 

Shire PLC - ADR

      Call         USD         115.00       9/23/13      40         (7,600 ) 

Teva Pharmaceutical Industries Ltd. - ADR

      Call         USD         40.00       9/23/13      102         (8,262 ) 

Thermo Fisher Scientific, Inc.

      Call         USD         90.00       9/23/13      95         (33,250 ) 

UnitedHealth Group, Inc.

      Call         USD         70.00       9/23/13      239         (90,820 ) 

Zimmer Holdings, Inc.

      Call         USD         85.00       9/23/13      45         (6,862 ) 

DENTSPLY International, Inc.

      Call         USD         43.00       9/24/13      175         (21,159 ) 

Exelixis, Inc.

      Call         USD         5.50       9/26/13      239         (5,378 ) 

Johnson & Johnson

      Call         USD         91.00       9/26/13      122         (39,095 ) 

Medtronic, Inc.

      Call         USD         55.00       9/26/13      303         (52,960 ) 

Zoetis, Inc.

      Call         USD         32.00       9/26/13      85         (3,275 ) 

Catamaran Corp.

      Call         USD         55.00       10/21/13      55         (13,338 ) 

Celgene Corp.

      Put         USD         130.00       8/19/13      58         (957 ) 

Halozyme Therapeutics, Inc.

      Put         USD         7.50       8/19/13      81         (1,012 ) 

Total

                   $ (3,021,018 ) 
                 

 

 

  

 

Ÿ  

Over-the-counter options written as of July 31, 2013 were as follows:

 

Description    Counterparty    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Puma Biotechnology, Inc.

    Barclays Bank PLC      Call         USD         37.80       8/02/13      10,000       $ (133,102 ) 

Pfizer, Inc.

    Morgan Stanley & Co. International PLC      Call         USD         27.67       8/06/13      18,600         (29,163 ) 

Service Corp. International

    UBS AG      Call         USD         18.35       8/06/13      37,400         (24,057 ) 

Coloplast A/S, Class B

    Citibank N.A.      Call         DKK         335.00       8/07/13      8,200         (2,450 ) 

Morphosys AG

    Deutsche Bank AG      Call         EUR         36.50       8/07/13      2,900         (57,153 ) 

Novartis AG

    Citibank N.A.      Call         CHF         69.07       8/07/13      43,600         (1,264 ) 

Universal Health Services, Inc., Class B

    Goldman Sachs International      Call         USD         70.15       8/08/13      29,400         (27,680 ) 

Sirona Dental Systems, Inc.

    Goldman Sachs International      Call         USD         66.89       8/09/13      11,500         (49,053 ) 

Sanofi

    Morgan Stanley & Co. International PLC      Call         EUR         79.18       8/14/13      10,000         (17,430 ) 

Aetna, Inc.

    Morgan Stanley & Co. International PLC      Call         USD         63.63       8/22/13      10,000         (16,611 ) 

Brazil Pharma SA

    Credit Suisse International      Call         BRL         10.55       8/27/13      6,400         (510 ) 

Brazil Pharma SA

    UBS AG      Call         BRL         11.03       8/27/13      30,000         (1,148 ) 

Becton Dickinson and Co.

    Credit Suisse International      Call         USD         100.65       8/28/13      5,000         (21,405 ) 

Boston Scientific Corp.

    UBS AG      Call         USD         9.40       8/28/13      85,600         (131,361 ) 

AbbVie, Inc.

    Credit Suisse International      Call         USD         44.04       9/03/13      51,200         (119,980 ) 

 

4         JULY 31, 2013     

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Over-the-counter options written as of July 31, 2013 were as follows: (concluded)

 

Description    Counterparty      Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Bayer AG

      Citibank N.A.         Call         EUR         84.32       9/11/13      11,500       $ (71,290 ) 

Roche Holding AG

      Morgan Stanley & Co. International PLC         Call         CHF         247.72       9/11/13      10,000         (5,642 ) 

ICON PLC

      Goldman Sachs International         Call         USD         38.18       9/12/13      25,000         (46,567 ) 

Bristol-Myers Squibb Co.

      Morgan Stanley & Co. International PLC         Call         USD         44.96       9/16/13      59,100         (32,576 ) 

Pfizer, Inc.

      Citibank N.A.         Call         USD         28.96       9/16/13      60,400         (49,208 ) 

Pfizer, Inc.

      Goldman Sachs International         Call         USD         29.77       9/16/13      18,200         (7,317 ) 

UnitedHealth Group, Inc.

      Barclays Bank PLC         Call         USD         72.92       9/18/13      4,100         (7,815 ) 

Chugai Pharmaceutical Co. Ltd.

      Citibank N.A.         Call         JPY         1,957.78       9/25/13      18,600         (16,286 ) 

Ono Pharmaceutical Co. Ltd.

      Citibank N.A.         Call         JPY         6,505.52       9/25/13      8,000         (22,814 ) 

Merck & Co., Inc.

      Morgan Stanley & Co. International PLC         Call         USD         48.77       10/01/13      13,700         (11,042 ) 

Total

                      $ (902,924 ) 
                    

 

 

  

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, please refer the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments:

            

Common Stocks:

            

Biotechnology

    $ 76,486,011         —       $ 384,116       $ 76,870,127   

Diversified Consumer Services

      2,553,362         —         —         2,553,362   

Food & Staples Retailing

      4,507,564         —         —         4,507,564   

Health Care Equipment & Supplies

      44,863,615         —         —         44,863,615   

Health Care Providers & Services

      30,397,887         —         —         30,397,887   

Health Care Technology

      2,386,300         —         —         2,386,300   

Life Sciences Tools & Services

      11,226,829       $ 948,899         —         12,175,728   

Pharmaceuticals

      61,688,967         26,776,698         —         88,465,665   

Short-Term Securities.

      1,620,106         —         —         1,620,106   

Total

    $ 235,730,641       $ 27,725,597       $ 384,116       $ 263,840,354   
  

 

 

  

 

          JULY 31, 2013    5

Schedule of Investments (concluded)      BlackRock Health Sciences Trust (BME)   

 

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

          

Assets:

          

Foreign currency exchange contracts.

    $ 49        —        —       $ 49   

Liabilities:

          

Equity contracts

      (2,155,811 )    $ (1,768,131 )      —         (3,923,942 ) 

Total

    $ (2,155,762 )    $ (1,768,131 )      —       $ (3,923,893 ) 
  

 

 

  
1 Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2013, such assets are categorized within the disclosure hierarchy as follows:

           
      Level 1      Level 2      Level 3      Total  

Assets:

            

Cash

    $ 4,506,262         —         —       $ 4,506,262   

Foreign currency at value

      2,406         —         —         2,406   

Cash pledged as collateral for options written

      855,488         —         —         855,488   

Total

    $ 5,364,156         —         —       $ 5,364,156   
  

 

 

  

There were no transfers between levels during the period ended July 31, 2013.

 

6         JULY 31, 2013     

Item 2 –   Controls and Procedures
2(a) –   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 –   Exhibits
  Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock Health Sciences Trust
By:         /s/ John M. Perlowski
  John M. Perlowski
 

Chief Executive Officer (principal executive officer) of

BlackRock Health Sciences Trust

Date: September 24, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:         /s/ John M. Perlowski
  John M. Perlowski
 

Chief Executive Officer (principal executive officer) of

BlackRock Health Sciences Trust

Date: September 24, 2013
By:         /s/ Neal J. Andrews
  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock Health Sciences Trust

Date: September 24, 2013