N-Q 1 d96385dnq.htm BLACKROCK SCIENCE & TECHNOLOGY TRUST BlackRock Science & Technology 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: 811-22991

Name of Fund: BlackRock Science and Technology Trust (BST)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Science and Technology 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: 12/31/2015

Date of reporting period: 09/30/2015


Item 1 – Schedule of Investments


Schedule of Investments September 30, 2015 (Unaudited)      BlackRock Science and Technology Trust (BST)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Automobiles — 0.7%

     

Tesla Motors, Inc. (a)(b)

     11,900       $ 2,955,960   

Commercial Services & Supplies — 0.3%

     

Atento SA (a)

     109,400         1,154,170   

Communications Equipment — 1.0%

     

Cisco Systems, Inc. (b)

     164,300         4,312,875   

Diversified Telecommunication Services — 1.2%

     

Cellnex Telecom SAU (a)

     202,621         3,452,192   

Link Net Tbk PT (a)

     5,681,600         1,745,485   
     

 

 

 
                5,197,677   

Electronic Equipment, Instruments & Components — 2.8%

  

  

Alps Electric Co. Ltd.

     104,400         2,919,702   

CDW Corp.

     82,300         3,362,778   

Delta Electronics, Inc.

     441,000         2,062,531   

Largan Precision Co. Ltd.

     39,700         3,086,539   
     

 

 

 
                11,431,550   

Hotels, Restaurants & Leisure — 0.8%

  

  

Six Flags Entertainment Corp. (b)

     69,800         3,195,444   

Household Durables — 1.5%

     

Sony Corp.

     256,300         6,282,458   

Internet & Catalog Retail — 5.3%

  

  

Amazon.com, Inc. (a)(b)

     21,000         10,749,690   

Ensogo Ltd. (a)

     3,465,657         329,090   

Netflix Inc. (a)(b)

     57,600         5,947,776   

Qunar Cayman Islands Ltd. — ADR (a)

     68,700         2,065,809   

Vipshop Holdings Ltd. — ADR (a)(b)

     173,400         2,913,120   
     

 

 

 
                22,005,485   

Internet Software & Services — 20.9%

     

58.com, Inc. — ADR (a)(b)

     94,900         4,465,045   

Alibaba Group Holding Ltd. — ADR (a)(b)

     54,300         3,202,071   

Box, Inc., Class A (a)(b)

     162,000         2,037,960   

comScore, Inc. (a)

     55,000         2,538,250   

Cvent, Inc. (a)(b)

     84,700         2,851,002   

DeNA Co. Ltd.

     130,500         2,413,867   

Facebook, Inc., Class A (a)(b)

     221,500         19,912,850   

Google, Inc., Class A (a)(b)

     41,500         26,492,355   

Hortonworks, Inc. (a)(b)

     121,935         2,669,157   

LinkedIn Corp., Class A (a)(b)

     18,700         3,555,431   

NetEase, Inc. — ADR (b)

     25,500         3,063,060   

New Relic, Inc. (a)

     69,200         2,637,212   

Tencent Holdings Ltd.

     633,500         10,569,164   
     

 

 

 
                86,407,424   

IT Services — 11.6%

     

Alliance Data Systems Corp. (a)(b)

     13,400         3,470,332   

Cognizant Technology Solutions Corp., Class A (a)(b)

     102,000         6,386,220   

Euronet Worldwide, Inc. (a)(b)

     48,100         3,563,729   

Fidelity National Information Services, Inc. (b)

     69,700         4,675,476   

Global Payments, Inc. (b)

     35,300         4,049,969   
Common Stocks    Shares      Value  

IT Services (continued)

     

Luxoft Holding, Inc. (a)

     49,100       $ 3,107,539   

MasterCard, Inc., Class A (b)

     96,900         8,732,628   

Sabre Corp. (b)

     170,000         4,620,600   

Visa, Inc., A Shares (b)

     138,400         9,640,944   
     

 

 

 
                48,247,437   

Media — 5.5%

  

  

Eros International PLC (a)

     220,805         6,003,688   

Liberty Global PLC, Class A (a)

     67,500         2,898,450   

Naspers Ltd., N Shares

     43,800         5,489,331   

Rentrak Corp. (a)(b)

     37,000         2,000,590   

Sky PLC

     131,100         2,070,470   

Stroeer SE

     35,700         2,099,484   

Walt Disney Co. (b)

     20,400         2,084,880   
     

 

 

 
                22,646,893   

Professional Services — 2.7%

  

  

Experian PLC

     149,400         2,398,349   

ManpowerGroup, Inc. (b)

     33,800         2,767,882   

TechnoPro Holdings, Inc.

     137,300         3,616,622   

TransUnion (a)

     93,500         2,348,720   
     

 

 

 
                11,131,573   

Real Estate Investment Trusts (REITs) — 4.9%

  

  

Crown Castle International Corp. (b)

     88,400         6,972,108   

Digital Realty Trust, Inc. (b)

     106,300         6,943,516   

Equinix, Inc. (b)

     23,100         6,315,540   
     

 

 

 
                20,231,164   

Semiconductors & Semiconductor Equipment — 10.1%

     

ARM Holdings PLC

     177,200         2,545,864   

ASML Holding NV

     27,100         2,382,182   

Avago Technologies Ltd. (b)

     37,100         4,637,871   

Broadcom Corp., Class A

     70,700         3,636,101   

Cavium, Inc. (a)(b)

     33,200         2,037,484   

Hermes Microvision, Inc.

     50,000         1,905,950   

Intel Corp. (b)

     142,500         4,294,950   

Lam Research Corp. (b)

     45,200         2,952,916   

Maxim Integrated Products, Inc. (b)

     74,600         2,491,640   

Microsemi Corp. (a)

     81,100         2,661,702   

NVIDIA Corp. (b)

     91,700         2,260,405   

NXP Semiconductors NV (a)(b)

     41,000         3,569,870   

Silicon Motion Technology Corp. — ADR (b)

     74,900         2,045,519   

Siliconware Precision Industries Co. Ltd.

     829,862         1,029,530   

Taiwan Semiconductor Manufacturing Co. Ltd.

     803,000         3,218,165   
     

 

 

 
                41,670,149   

Software — 17.3%

  

  

Activision Blizzard, Inc. (b)

     193,000         5,961,770   

Adobe Systems, Inc. (a)(b)

     66,600         5,475,852   

Autodesk, Inc. (a)(b)

     96,800         4,272,752   

Electronic Arts, Inc. (a)(b)

     65,400         4,430,850   

Imperva, Inc. (a)(b)

     76,900         5,035,412   

Microsoft Corp. (b)

     321,700         14,238,442   
 
      Portfolio Abbreviations
ADR    American Depositary Receipt      HKD    Hong Kong Dollar    USD    U.S. Dollar
EUR    Euro      JPY    Japanese Yen    ZAR    South African Rand    South African Rand
GBP    British Pound      TWD    Taiwan Dollar      

 

 

          SEPTEMBER 30, 2015    1


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

Common Stocks    Shares      Value  

Software (continued)

     

Nintendo Co. Ltd.

     32,100       $ 5,410,511   

Oracle Corp. (b)

     121,000         4,370,520   

Proofpoint, Inc. (a)(b)

     50,400         3,040,128   

Rapid7, Inc. (a)(b)

     39,700         903,175   

RingCentral, Inc., Class A (a)

     145,200         2,635,380   

Salesforce.com, Inc. (a)(b)

     55,200         3,832,536   

ServiceNow, Inc. (a)(b)

     45,100         3,132,195   

Sophos Group PLC (a)

     827,500         2,922,945   

Tableau Software, Inc., Class A (a)(b)

     20,200         1,611,556   

Take-Two Interactive Software, Inc. (a)(b)

     63,600         1,827,228   

Zendesk, Inc. (a)(b)

     128,700         2,536,675   
     

 

 

 
                71,637,927   

Technology Hardware, Storage & Peripherals — 6.3%

  

  

Apple, Inc. (b)(c)

     196,700         21,696,010   

Pegatron Corp.

     1,756,000         4,297,444   
     

 

 

 
                25,993,454   

Wireless Telecommunication Services — 0.6%

     

Bharti Infratel Ltd.

     460,800         2,493,543   
     
Preferred Stocks                

Internet & Catalog Retail — 0.5%

     

Jasper Infotech Private Ltd., Series I (Acquired 8/18/15, Cost 1,998,435) (a)(d)

     1,054         1,920,830   

Internet Software & Services — 2.5%

     

Uber Technologies, Inc., Series E (Acquired 12/4/14, Cost $3,000,048), 0.00% (a)(d)

     90,044         3,424,094   

Xiaoju Kuaizhi, Inc., Series A-17 (Acquired 7/28/15, Cost $3,016,964) (a)(d)

     110,003         3,016,964   

Zuora, Inc. (Acquired 1/16/15, Cost $3,894,522), 0.00% (a)(d)

     1,025,063         3,881,504   
     

 

 

 
                10,322,562   

Software — 0.4%

     

Illumio, Inc., Series C (Acquired 3/11/15, Cost $1,500,001), 0.00% (a)(d)

     466,730         1,535,682   

Total Preferred Stocks — 3.4%

              13,779,074   

Total Long-Term Investments

(Cost — $375,160,419) — 96.9%

              400,774,257   
     
                  
Short-Term Securities    Shares      Value  

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.10% (e)(f)

     3,755,235       $ 3,755,235   

Total Short-Term Securities

(Cost — $3,755,235) — 0.9%

              3,755,235   

Total Investments Before Options Written

(Cost — $378,915,654*) — 97.8%

              404,529,492   
     
Options Written                

(Premiums Received — $3,858,028) — (0.7)%

              (2,936,707

Total Investments Net of Options Written — 97.1%

        401,592,785   

Other Assets Less Liabilities — 2.9%

        12,197,699   
     

 

 

 

Net Assets — 100.0%

      $ 413,790,484   
     

 

 

 
 

 

      Notes to Schedule of Investments

 

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

 

Tax cost

   $ 378,963,259   
  

 

 

 

Gross unrealized appreciation

   $ 40,962,320   

Gross unrealized depreciation

     (15,396,087
  

 

 

 

Net unrealized appreciation

   $ 25,566,233   
  

 

 

 

 

(a) Non-income producing security.

 

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

 

(c) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(d) Restricted security as to resale, excluding 144A securities. As of report date, the Trust held restricted securities with a current value of $13,779,074 and an original cost of $13,409,970 which was 3.3% of its net assets.

 

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

 

 

2         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

(f) During the period ended September 30, 2015, 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:

 

Affiliates   

Shares

Held at

December 31,

2014

    

Net

Activity

   

Shares

Held at
September 30,

2015

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     41,173,790         (37,418,555     3,755,235       $ 6,783   

BlackRock Liquidity Series, LLC, Money Market Series

                          $ 17,024 1 

 

1 

Represents securities lending income earned from the reinvestment 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 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 advisor. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

      Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Put/
Call
       Expiration
Date
    

Strike

Price

       Contracts        Value  

Activision Blizzard, Inc.

     Call         10/02/15        USD         29.50           338         $ (44,954

Alibaba Group Holding Ltd. — ADR

     Call         10/02/15        USD         73.00           45           (225

Amazon.com, Inc.

     Call         10/02/15        USD         535.00           74           (2,738

Apple, Inc.

     Call         10/02/15        USD         120.00           72           (72

Cognizant Technology Solutions Corp., Class A

     Call         10/02/15        USD         67.50           86           (2,150

Electronic Arts, Inc.

     Call         10/02/15        USD         70.50           53           (1,325

Facebook, Inc., Class A

     Call         10/02/15        USD         94.50           65           (130

MasterCard, Inc., Class A

     Call         10/02/15        USD         95.00           25           (375

Microsoft Corp.

     Call         10/02/15        USD         45.00           7           (46

Microsoft Corp.

     Call         10/02/15        USD         47.50           188           (188

Netflix Inc.

     Call         10/02/15        USD         101.00           15           (4,912

Oracle Corp.

     Call         10/02/15        USD         38.50           116           (116

Salesforce.com, Inc.

     Call         10/02/15        USD         74.00           13           (39

Tesla Motors, Inc.

     Call         10/02/15        USD         260.00           25           (1,862

Vipshop Holdings Ltd. — ADR

     Call         10/02/15        USD         21.50           203           (1,015

Visa, Inc., A Shares

     Call         10/02/15        USD         74.50           28           (448

Alibaba Group Holding Ltd. — ADR

     Call         10/09/15        USD         73.50           45           (270

Cognizant Technology Solutions Corp., Class A

     Call         10/09/15        USD         64.00           132           (6,930

Google, Inc., Class A

     Call         10/09/15        USD         665.00           8           (1,300

Google, Inc., Class A

     Call         10/09/15        USD         675.00           17           (1,062

Intel Corp.

     Call         10/09/15        USD         30.50           250           (9,250

LinkedIn Corp., Class A

     Call         10/09/15        USD         190.00           32           (13,760

Microsoft Corp.

     Call         10/09/15        USD         44.00           170           (13,940

Microsoft Corp.

     Call         10/09/15        USD         45.50           75           (1,313

Netflix Inc.

     Call         10/09/15        USD         109.00           152           (22,800

Oracle Corp.

     Call         10/09/15        USD         39.00           113           (904

Salesforce.com, Inc.

     Call         10/09/15        USD         71.50           121           (7,563

Vipshop Holdings Ltd. — ADR

     Call         10/09/15        USD         20.00           59           (885

Sabre Corp.

     Call         10/12/15        USD         29.00           83           (1,236

58.com, Inc. — ADR

     Call         10/16/15        USD         50.00           190           (22,800

Adobe Systems, Inc.

     Call         10/16/15        USD         82.50           116           (23,490

Adobe Systems, Inc.

     Call         10/16/15        USD         85.00           88           (9,064

Alibaba Group Holding Ltd. — ADR

     Call         10/16/15        USD         75.00           45           (90

Alliance Data Systems Corp.

     Call         10/16/15        USD         260.00           46           (25,300

Autodesk, Inc.

     Call         10/16/15        USD         50.00           98           (1,372

Autodesk, Inc.

     Call         10/16/15        USD         55.00           270           (1,080

Cavium, Inc.

     Call         10/16/15        USD         65.00           30           (3,900

Cavium, Inc.

     Call         10/16/15        USD         70.00           90           (4,050

Cognizant Technology Solutions Corp., Class A

     Call         10/16/15        USD         65.00           53           (2,650

Crown Castle International Corp.

     Call         10/16/15        USD         80.00           192           (14,880

Digital Realty Trust, Inc.

     Call         10/16/15        USD         65.00           365           (51,100

 

 

          SEPTEMBER 30, 2015    3


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

 

Description    Put/
Call
       Expiration
Date
    

Strike

Price

       Contracts        Value  

Electronic Arts, Inc.

     Call         10/16/15        USD         70.00           106         $ (10,494

Equinix, Inc.

     Call         10/16/15        USD         280.00           80           (23,800

Euronet Worldwide, Inc.

     Call         10/16/15        USD         70.00           18           (9,000

Euronet Worldwide, Inc.

     Call         10/16/15        USD         75.00           150           (28,125

Facebook, Inc., Class A

     Call         10/16/15        USD         94.50           100           (7,900

Fidelity National Information Services, Inc.

     Call         10/16/15        USD         70.00           240           (11,280

Global Payments, Inc.

     Call         10/16/15        USD         115.00           30           (10,200

Global Payments, Inc.

     Call         10/16/15        USD         120.00           30           (4,125

Google, Inc., Class A

     Call         10/16/15        USD         675.00           29           (18,705

Imperva, Inc.

     Call         10/16/15        USD         70.00           85           (10,625

Imperva, Inc.

     Call         10/16/15        USD         75.00           185           (8,325

Lam Research Corp.

     Call         10/16/15        USD         77.50           86           (860

LinkedIn Corp., Class A

     Call         10/16/15        USD         210.00           33           (1,386

ManpowerGroup, Inc.

     Call         10/16/15        USD         90.00           60           (900

Microsoft Corp.

     Call         10/16/15        USD         45.00           50           (2,600

Microsoft Corp.

     Call         10/16/15        USD         46.00           319           (6,380

NetEase, Inc. — ADR

     Call         10/16/15        USD         125.00           80           (17,600

Netflix Inc.

     Call         10/16/15        USD         102.00           35           (32,462

NXP Semiconductors NV

     Call         10/16/15        USD         95.00           73           (4,928

Proofpoint, Inc.

     Call         10/16/15        USD         60.00           177           (43,365

Rapid7, Inc.

     Call         10/16/15        USD         22.50           140           (70,000

ServiceNow, Inc.

     Call         10/16/15        USD         75.00           53           (2,650

ServiceNow, Inc.

     Call         10/16/15        USD         80.00           53           (2,385

Silicon Motion Technology Corp. — ADR

     Call         10/16/15        USD         30.00           175           (6,125

Six Flags Entertainment Corp.

     Call         10/16/15        USD         45.00           260           (37,050

Tableau Software, Inc., Class A

     Call         10/16/15        USD         100.00           47           (1,410

Tableau Software, Inc., Class A

     Call         10/16/15        USD         110.00           23           (345

Take-Two Interactive Software, Inc.

     Call         10/16/15        USD         31.00           222           (8,880

Tesla Motors, Inc.

     Call         10/16/15        USD         265.00           25           (6,475

Visa, Inc., A Shares

     Call         10/16/15        USD         72.50           104           (3,692

Zendesk, Inc.

     Call         10/16/15        USD         22.50           270           (8,100

Activision Blizzard, Inc.

     Call         10/23/15        USD         31.50           48           (3,456

Apple, Inc.

     Call         10/23/15        USD         115.00           161           (20,689

Cisco Systems, Inc.

     Call         10/23/15        USD         26.00           550           (36,575

Cisco Systems, Inc.

     Call         10/23/15        USD         26.50           130           (5,460

Electronic Arts, Inc.

     Call         10/23/15        USD         71.50           70           (5,880

Facebook, Inc., Class A

     Call         10/23/15        USD         95.00           407           (50,875

MasterCard, Inc., Class A

     Call         10/23/15        USD         91.50           148           (23,088

Microsoft Corp.

     Call         10/23/15        USD         45.50           83           (6,391

NVIDIA Corp.

     Call         10/23/15        USD         24.00           320           (41,600

Vipshop Holdings Ltd. — ADR

     Call         10/23/15        USD         19.50           180           (4,950

Visa, Inc., A Shares

     Call         10/23/15        USD         72.50           176           (10,384

Silicon Motion Technology Corp. — ADR

     Call         10/26/15        USD         26.25           87           (16,435

Alibaba Group Holding Ltd. — ADR

     Call         10/30/15        USD         67.00           55           (3,768

Apple, Inc.

     Call         10/30/15        USD         121.00           161           (16,342

Cisco Systems, Inc.

     Call         10/30/15        USD         26.50           2           (99

Cognizant Technology Solutions Corp., Class A

     Call         10/30/15        USD         64.50           50           (5,625

Facebook, Inc., Class A

     Call         10/30/15        USD         97.50           127           (18,415

Google, Inc., Class A

     Call         10/30/15        USD         670.00           29           (37,265

ManpowerGroup, Inc.

     Call         10/30/15        USD         90.00           60           (2,936

Microsoft Corp.

     Call         10/30/15        USD         45.50           84           (7,224

Microsoft Corp.

     Call         10/30/15        USD         46.00           150           (10,200

Tesla Motors, Inc.

     Call         10/30/15        USD         270.00           18           (6,885

Visa, Inc., A Shares

     Call         10/30/15        USD         72.50           176           (18,216

Walt Disney Co.

     Call         10/30/15        USD         103.00           35           (8,365

Cisco Systems, Inc.

     Call         11/06/15        USD         26.00           550           (45,375

Facebook, Inc., Class A

     Call         11/06/15        USD         94.00           76           (22,836

Intel Corp.

     Call         11/06/15        USD         30.00           124           (15,190

MasterCard, Inc., Class A

     Call         11/06/15        USD         92.00           167           (37,408

Salesforce.com, Inc.

     Call         11/06/15        USD         72.50           60           (9,810

Avago Technologies Ltd.

     Call         11/16/15        USD         131.25           130           (64,903

Adobe Systems, Inc.

     Call         11/20/15        USD         82.50           75           (25,125

Box, Inc., Class A

     Call         11/20/15        USD         15.00           134           (4,020

 

 

4         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

 

Description    Put/
Call
       Expiration
Date
    

Strike

Price

       Contracts        Value  

Cognizant Technology Solutions Corp., Class A

     Call         11/20/15        USD         65.00           36         $ (6,750

Crown Castle International Corp.

     Call         11/20/15        USD         82.50           120           (13,500

Cvent, Inc.

     Call         11/20/15        USD         35.00           300           (45,750

Global Payments, Inc.

     Call         11/20/15        USD         115.60           66           (29,393

Hortonworks, Inc.

     Call         11/20/15        USD         25.00           426           (36,210

Intel Corp.

     Call         11/20/15        USD         30.00           124           (16,492

Maxim Integrated Products, Inc.

     Call         11/20/15        USD         34.00           270           (35,100

NetEase, Inc. — ADR

     Call         11/20/15        USD         125.00           10           (6,550

NXP Semiconductors NV

     Call         11/20/15        USD         97.50           72           (16,740

Rentrak Corp.

     Call         11/20/15        USD         60.00           129           (31,605

ServiceNow, Inc.

     Call         11/20/15        USD         80.00           52           (4,940

Walt Disney Co.

     Call         11/20/15        USD         105.00           35           (9,625

MasterCard, Inc., Class A

     Put         10/02/15        USD         89.00           91           (3,640

Google, Inc., Class A

     Put         10/09/15        USD         637.50           13           (14,040

Sabre Corp.

     Put         10/12/15        USD         26.00           151           (6,459

Cavium, Inc.

     Put         10/16/15        USD         60.00           69           (18,113

Euronet Worldwide, Inc.

     Put         10/16/15        USD         60.00           64           (640

ServiceNow, Inc.

     Put         10/16/15        USD         65.00           59           (5,900

PayPal Holdings, Inc.

     Put         10/23/15        USD         32.50           250           (55,000

Apple, Inc.

     Put         10/30/15        USD         110.00           54           (26,730

Google, Inc., Class A

     Put         10/30/15        USD         630.00           33           (78,045

Intel Corp.

     Put         10/30/15        USD         27.00           296           (8,732

NVIDIA Corp.

     Put         10/30/15        USD         22.50           450           (16,650

Total

                          $ (1,774,150
                         

 

 

 

OTC Options Written

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

ASML Holding NV

     Call       Deutsche Bank AG    10/02/15      EUR         88.27         7,300       $ (9

TransUnion

     Call       Morgan Stanley & Co. International PLC    10/02/15      USD         26.14         21,000         (662

CDW Corp.

     Call       Citibank N.A.    10/05/15      USD         34.28         23,000         (151,381

Sky PLC

     Call       Deutsche Bank AG    10/06/15      GBP         10.68         21,400         (2,597

Stroeer SE

     Call       Bank of America N.A.    10/06/15      EUR         51.79         12,400         (28,138

Hermes Microvision, Inc.

     Call       BNP Paribas S.A.    10/07/15      TWD         1,285.74         19,000         (22,618

Nintendo Co. Ltd.

     Call       Goldman Sachs International    10/07/15      JPY         24,055.65         4,200         (9

Sony Corp.

     Call       Citibank N.A.    10/07/15      JPY         3,495.16         54,700         (405

TechnoPro Holdings, Inc.

     Call       Goldman Sachs International    10/07/15      JPY         3,417.75         15,600         (2,576

ARM Holdings PLC

     Call       Morgan Stanley & Co. International PLC    10/08/15      GBP         9.70         33,100         (6,240

Naspers Ltd., N Shares

     Call       Morgan Stanley & Co. International PLC    10/09/15      ZAR         1,785.01         8,000         (18,887

Sabre Corp.

     Call       Citibank N.A.    10/12/15      USD         27.66         13,000         (5,618

Alps Electric Co. Ltd.

     Call       Goldman Sachs International    10/13/15      JPY         4,089.75         20,000         (84

Eros International PLC

     Call       Citibank N.A.    10/13/15      USD         37.50         33,000         (295

Delta Electronics, Inc.

     Call       Deutsche Bank AG    10/14/15      TWD         177.98         169,000         (973

Liberty Global PLC, Class A

     Call       Citibank N.A.    10/14/15      USD         50.51         18,000         (3

CDW Corp.

     Call       Citibank N.A.    10/15/15      USD         41.52         23,000         (14,692

Luxoft Holding, Inc.

     Call       Deutsche Bank AG    10/15/15      USD         65.57         9,400         (13,120

Pegatron Corp.

     Call       Morgan Stanley & Co. International PLC    10/15/15      TWD         90.61         299,000         (2,054

New Relic, Inc.

     Call       Citibank N.A.    10/19/15      USD         35.58         1,700         (4,970

ASML Holding NV

     Call       UBS AG    10/22/15      EUR         88.39         7,300         (6,512

Naspers Ltd., N Shares

     Call       Morgan Stanley & Co. International PLC    10/22/15      ZAR         1,770.24         7,300         (34,866

Nintendo Co. Ltd.

     Call       Morgan Stanley & Co. International PLC    10/22/15      JPY         24,341.20         7,000         (3,221

Pegatron Corp.

     Call       Deutsche Bank AG    10/22/15      TWD         88.50         100,000         (2,216

RingCentral, Inc., Class A

     Call       Deutsche Bank AG    10/22/15      USD         18.47         25,000         (19,823

TransUnion

     Call       Morgan Stanley & Co. International PLC    10/22/15      USD         26.14         21,000         (12,109

Atento SA

     Call       Goldman Sachs International    10/26/15      USD         12.87         19,500         (5

TechnoPro Holdings, Inc.

     Call       BNP Paribas S.A.    10/27/15      JPY         3,374.80         12,400         (9,432

Alps Electric Co. Ltd.

     Call       BNP Paribas S.A.    10/28/15      JPY         3,816.30         20,000         (9,207

Alps Electric Co. Ltd.

     Call       Morgan Stanley & Co. International PLC    10/28/15      JPY         3,676.01         7,500         (5,348

Tencent Holdings Ltd.

     Call       Citibank N.A.    10/28/15      HKD         129.79         220,000         (126,098

Adobe Systems, Inc.

     Call       Credit Suisse International    10/30/15      USD         85.99         8,800         (12,656

Digital Realty Trust, Inc.

     Call       Deutsche Bank AG    10/30/15      USD         65.71         22,000         (23,670

Luxoft Holding, Inc.

     Call       Deutsche Bank AG    10/30/15      USD         62.79         10,000         (35,255

Microsemi Corp.

     Call       Citibank N.A.    10/30/15      USD         32.36         13,300         (22,898

 

 

          SEPTEMBER 30, 2015    5


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

Six Flags Entertainment Corp.

     Call       Morgan Stanley & Co. International PLC    10/30/15      USD         46.82         12,200       $ (11,256

Eros International PLC

     Call       Citibank N.A.    11/02/15      USD         34.38         10,000         (4,049

Sabre Corp.

     Call       Citibank N.A.    11/02/15      USD         28.76         20,400         (11,645

ARM Holdings PLC

     Call       Morgan Stanley & Co. International PLC    11/04/15      GBP         9.50         29,000         (18,389

Delta Electronics, Inc.

     Call       Morgan Stanley & Co. International PLC    11/04/15      TWD         163.28         74,000         (9,216

Experian PLC

     Call       Morgan Stanley & Co. International PLC    11/04/15      GBP         10.53         25,000         (14,526

Hermes Microvision, Inc.

     Call       Citibank N.A.    11/04/15      TWD         1,242.68         10,000         (38,328

Pegatron Corp.

     Call       UBS AG    11/04/15      TWD         87.67         220,000         (9,891

Siliconware Precision Industries Co. Ltd.

     Call       Morgan Stanley & Co. International PLC    11/04/15      TWD         40.46         445,000         (39,734

Sky PLC

     Call       Deutsche Bank AG    11/04/15      GBP         10.57         37,000         (12,174

Sky PLC

     Call       Goldman Sachs International    11/04/15      GBP         10.46         14,000         (6,613

Taiwan Semiconductor Manufacturing Co. Ltd.

     Call       Citibank N.A.    11/04/15      TWD         130.54         145,000         (22,678

Microsemi Corp.

     Call       Citibank N.A.    11/06/15      USD         33.65         15,000         (15,239

New Relic, Inc.

     Call       Deutsche Bank AG    11/06/15      USD         38.55         22,500         (35,291

Sony Corp.

     Call       BNP Paribas S.A.    11/10/15      JPY         2,957.49         35,000         (44,948

TransUnion

     Call       Deutsche Bank AG    11/10/15      USD         25.74         9,400         (10,933

Atento SA

     Call       Citibank N.A.    11/12/15      USD         11.34         15,000         (1,058

RingCentral, Inc., Class A

     Call       Deutsche Bank AG    11/12/15      USD         18.47         25,000         (29,139

DeNA Co. Ltd.

     Call       Citibank N.A.    11/13/15      JPY         2,281.45         46,000         (32,275

Largan Precision Co. Ltd.

     Call       BNP Paribas S.A.    11/13/15      TWD         2,655.93         14,000         (37,953

TechnoPro Holdings, Inc.

     Call       Citibank N.A.    11/13/15      JPY         3,262.21         20,000         (18,956

Liberty Global PLC, Class A

     Call       Citibank N.A.    11/17/15      USD         50.71         5,700         (2,341

Alps Electric Co. Ltd.

     Call       BNP Paribas S.A.    11/18/15      JPY         3,385.20         10,000         (19,110

Taiwan Semiconductor Manufacturing Co. Ltd.

     Call       Deutsche Bank AG    11/18/15      TWD         133.95         136,000         (17,048

Experian PLC

     Call       UBS AG    12/01/15      GBP         10.93         27,000         (13,846

Nintendo Co. Ltd.

     Put       BNP Paribas S.A.    10/22/15      JPY         19,889.27         5,000         (32,149

Eros International PLC

     Put       Barclays Bank PLC    10/30/15      USD         27.81         22,200         (55,125

Total

                                                 $ (1,162,557
                    

 

 

 

 

      Fair Value Hierarchy as of Period End

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

 

   

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

 

   

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)

 

   

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 hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value 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 investments and derivative financial instruments 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, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

 

 

6         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Science and Technology Trust (BST)   

 

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:

                 

Long-Term Investments:

                 

Common Stocks:

                 

Automobiles

     $ 2,955,960                        $ 2,955,960  

Commercial Services & Supplies

       1,154,170                          1,154,170  

Communications Equipment

       4,312,875                          4,312,875  

Diversified Telecommunication Services

             $ 5,197,677                  5,197,677  

Electronic Equipment, Instruments & Components

       11,431,550                          11,431,550  

Hotels, Restaurants & Leisure

       3,195,444                          3,195,444  

Household Durables

               6,282,458                  6,282,458  

Internet & Catalog Retail

       21,676,395         329,090                  22,005,485  

Internet Software & Services

       86,407,424                          86,407,424  

IT Services

       48,247,437                          48,247,437  

Media

       17,157,562         5,489,331                  22,646,893  

Professional Services

       8,733,224         2,398,349                  11,131,573  

Real Estate Investment Trusts (REITs)

       20,231,164                          20,231,164  

Semiconductors & Semiconductor Equipment

       31,617,988         10,052,161                  41,670,149  

Software

       66,227,416         5,410,511                  71,637,927  

Technology Hardware, Storage & Peripherals

       21,696,010         4,297,444                  25,993,454  

Wireless Telecommunication Services

       2,493,543                          2,493,543  

Preferred Stocks

                     $ 13,779,074          13,779,074  

Short-Term Securities

       3,755,235                          3,755,235  
    

 

 

 

Total

     $ 351,293,397       $ 39,457,021       $ 13,779,074        $ 404,529,492  
    

 

 

 
                 
      Level 1   Level 2   Level 3    Total

Derivative Financial Instruments1

                 

Liabilities:

                 

Equity contracts

     $ (1,652,788 )     $ (1,283,919 )              $ (2,936,707 )
    

 

 

 

1    Derivative financial instruments are options written, which are shown at value.

                 
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
                 
      Level 1   Level 2   Level 3    Total

Assets:

                 

Foreign currency at value

     $ 145,915                        $ 145,915  

Cash pledged as collateral for OTC derivatives

       590,000                          590,000  

Cash pledged as collateral for exchange-traded options written

       8,935,448                          8,935,448  

Liabilities:

                 

Bank overdraft

             $ (28,027 )              $ (28,027 )
    

 

 

 

Total

     $ 9,671,363       $ (28,027 )              $ 9,643,336  
    

 

 

 

During the period ended September 30, 2015, there were no transfers between levels.

 

 

          SEPTEMBER 30, 2015    7


Schedule of Investments (concluded)      BlackRock Science and Technology Trust (BST)   

 

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

     

Preferred

Stocks

 

Assets:

  

Opening Balance, as of December 31, 2014

   $ 3,000,048   

Transfers into Level 3

       

Transfers out of Level 3

       

Accrued discounts/premiums

       

Net realized gain (loss)

       

Net change in unrealized appreciation/depreciation

     369,105   

Purchases

     10,409,922   

Sales

       
  

 

 

 

Closing Balance, as of September 30, 2015

   $ 13,779,075   
  

 

 

 

Net change in unrealized appreciation/depreciation on investments still held at September 30, 2015

   $ 369,105   
  

 

 

 

The following table summarizes the valuation techniques used and unobservable inputs utilized by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) to determine the value of certain of the Trust’s Level 3 investments as of period end.

 

      Value      Valuation Techniques   

Unobservable

Inputs

   Range of
Unobservable Inputs
Utilized
 

Assets:

           

Preferred Stocks

   $ 13,779,075       Market Comparable Companies    2016 Projected Revenue Multiple1      5.41x   
         Compounded Annual Net Revenue Growth Rate1      884.00%   
         Net Revenue Multiple1      24.75x   
         Net Revenue Growth Rate1      372.80%   
     

Probability-Weighted Expected Return Model

   Discount Rate1      20.00% - 25.00%   
         Revenue Growth Rate1      86.44%   
         Projected Revenue Multiple1      1.43x - 3.28x   
         Years to IPO2      1 - 3   
         IPO Exit Probability1      70.00% - 80.00% 3 
         Projected Revenue Multiple1      4.50x - 97.50x 4 
                   Compounded Annual Revenue Growth  Rate1      81.07% - 766.00% 5 

 

  1   

Increase in unobservable input may result in a significant increase to value, while a decrease in the unobservable input may result in a significant decrease to value.

 

  2   

Decrease in unobservable input may result in a significant increase to value, while an increase in the unobservable input may result in a significant decrease to value.

 

  3   

Weighted Average input is 72.83%.

 

  4   

Weighted Average input is 26.72x

 

  5   

Weighted Average input is 275.24%.

 

 

8         SEPTEMBER 30, 2015     


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 Science and Technology Trust

 

By:      

    /s/ John M. Perlowski

 
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of  BlackRock Science and Technology Trust
Date: November 23, 2015

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 Science and Technology Trust
Date: November 23, 2015
By:  

    /s/ Neal J. Andrews

 
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of  BlackRock Science and Technology Trust
Date: November 23, 2015