N-Q 1 d257966dnq.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: 12/31/2016

Date of reporting period: 09/30/2016

Item 1 – Schedule of Investments

Schedule of Investments September 30, 2016 (Unaudited)      BlackRock Science and Technology Trust (BST)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks   Shares     Value  

Communications Equipment — 1.1%

    

Cisco Systems, Inc. (a)

     86,300      $ 2,737,436   

Oclaro, Inc. (a)(b)

     278,100        2,377,755   
   

 

 

  
              5,115,191   

Diversified Telecommunication Services — 0.4%

    

Zayo Group Holdings, Inc. (a)(b)

     62,600        1,859,846   

Electronic Equipment, Instruments & Components — 2.0%

  

Coherent, Inc. (a)(b)

     19,900        2,199,746   

Fabrinet (a)(b)

     41,200        1,837,108   

Flex Ltd. (a)(b)

     176,100        2,398,482   

Largan Precision Co. Ltd.

     26,000        3,168,789   
   

 

 

  
              9,604,125   

Equity Real Estate Investment Trusts (REITs) — 5.0%

    

Crown Castle International Corp. (a)

     85,300        8,036,113   

Digital Realty Trust, Inc. (a)

     71,900        6,982,928   

Equinix, Inc. (a)

     24,551        8,844,498   
   

 

 

  
              23,863,539   

Household Durables — 1.0%

    

Sony Corp.

     140,700        4,661,475   

Internet & Direct Marketing Retail — 7.6%

    

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

     29,200        24,449,452   

Ensogo Ltd. (b)

     173,282        86,204   

Expedia, Inc. (a)

     22,400        2,614,528   

Netflix, Inc. (a)(b)

     32,120        3,165,426   

Priceline Group, Inc. (a)(b)

     2,300        3,384,427   

Yoox Net-A-Porter Group SpA (b)

     67,900        2,104,398   
   

 

 

  
              35,804,435   

Internet Software & Services — 23.5%

    

58.com, Inc. — ADR (a)(b)

     53,300        2,540,278   

Akamai Technologies, Inc. (a)(b)

     45,800        2,426,942   

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

     135,300        14,313,387   

Alphabet, Inc., Class A (a)(b)

     37,100        29,830,626   

Apptio, Inc. — Class A (b)

     35,216        764,187   

DeNA Co. Ltd.

     80,400        2,923,402   

Facebook, Inc., Class A (a)(b)

     162,500        20,843,875   

GoDaddy, Inc., Class A (a)(b)

     56,000        1,933,680   

MercadoLibre, Inc. (a)

     23,400        4,328,298   

New Relic, Inc. (a)(b)

     44,300        1,697,576   

Nutanix, Inc. — A (b)

     81,320        3,008,840   

Scout24 AG (b)(c)

     54,048        1,820,503   

Shopify, Inc., Class A (a)(b)

     64,800        2,781,216   

Tencent Holdings Ltd.

     678,900        18,874,802   

Yandex NV, Class A (a)(b)

     142,700        3,003,835   
   

 

 

  
              111,091,447   

IT Services — 11.7%

    

Capgemini SA

     28,500        2,794,253   

Cielo SA

     249,200        2,504,145   

Computer Sciences Corp. (a)

     46,600        2,432,986   

Euronet Worldwide, Inc. (a)(b)

     37,900        3,101,357   
Common Stocks   Shares     Value  

IT Services (continued)

    

Fidelity National Information Services, Inc. (a)

     55,000      $ 4,236,650   

Global Payments, Inc. (a)

     49,200        3,776,592   

InterXion Holding NV (a)(b)

     79,600        2,883,112   

MasterCard, Inc., Class A (a)

     100,200        10,197,354   

PayPal Holdings, Inc. (a)(b)

     93,200        3,818,404   

Sabre Corp. (a)

     112,800        3,178,704   

Square, Inc., Class A (a)(b)

     284,700        3,319,602   

Visa, Inc., A Shares (a)

     154,800        12,801,960   
   

 

 

  
              55,045,119   

Media — 1.9%

    

Eros International PLC (a)(b)(d)

     147,605        2,261,309   

Naspers Ltd., N Shares

     38,400        6,646,000   
   

 

 

  
              8,907,309   

Professional Services — 0.4%

    

Equifax, Inc. (a)

     13,900        1,870,662   

Semiconductors & Semiconductor Equipment — 14.2%

    

Advanced Micro Devices (a)(b)

     326,000        2,252,660   

Applied Materials, Inc. (a)

     169,500        5,110,425   

ASML Holding NV

     57,700        6,323,429   

BE Semiconductor Industries NV

     59,300        2,023,060   

Broadcom Ltd. (a)

     64,196        11,075,094   

Lam Research Corp. (a)

     58,000        5,493,180   

Lattice Semiconductor Corp. (b)

     297,600        1,931,424   

MACOM Technology Solutions Holdings, Inc. (a)(b)

     55,400        2,345,636   

Marvell Technology Group Ltd. (a)

     163,100        2,164,337   

Micron Technology, Inc. (a)(b)

     108,900        1,936,242   

Microsemi Corp. (b)

     49,100        2,061,218   

Monolithic Power Systems, Inc. (a)

     23,700        1,907,850   

NVIDIA Corp. (a)

     80,100        5,488,452   

NXP Semiconductors NV (a)(b)

     56,600        5,773,766   

STMicroelectronics NV

     355,000        2,901,378   

Taiwan Semiconductor Manufacturing Co. Ltd.

     1,388,000        8,158,863   
   

 

 

  
              66,947,014   

Software — 20.1%

    

Activision Blizzard, Inc. (a)

     179,700        7,960,709   

Adobe Systems, Inc. (b)

     63,400        6,881,436   

Altium Ltd.

     291,300        2,063,063   

Atlassian Corp. PLC, Class A (a)(b)

     64,400        1,930,068   

Autodesk, Inc. (a)(b)

     39,200        2,835,336   

Electronic Arts, Inc. (a)(b)

     73,500        6,276,900   

Gridsum Holding Inc. — ADR (b)

     206,707        3,483,013   

LINE Corp. — ADR (a)(b)

     50,300        2,434,520   

Linx SA

     85,971        512,841   

Microsoft Corp. (a)

     403,600        23,247,360   

Nintendo Co. Ltd.

     42,400        11,352,714   

Proofpoint, Inc. (a)(b)

     47,200        3,532,920   

PTC, Inc. (a)(b)

     59,900        2,654,169   

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

     68,200        4,864,706   
 
      Portfolio Abbreviations
ADR    American Depositary Receipt      HKD    Hong Kong Dollar    REIT    Real Estate Investment Trust
AUD    Australian Dollar      JPY    Japanese Yen    TWD    Taiwan Dollar
BRL    Brazilian Real      KRW    Korean Won    USD    U.S. Dollar
EUR    Euro      NZD    New Zealand Dollar    ZAR    South African Rand

 

 

          SEPTEMBER 30, 2016    1

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

 

Common Stocks   Shares     Value  

Software (continued)

    

ServiceNow, Inc. (a)(b)

     37,800      $ 2,991,870   

Symantec Corp. (a)

     92,700        2,326,770   

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

     82,200        3,705,576   

Talend SA — ADR (b)

     41,042        1,073,659   

Xero Ltd. (b)

     123,900        1,749,557   

Zendesk, Inc. (b)

     90,000        2,763,900   
   

 

 

  
              94,641,087   

Technology Hardware, Storage & Peripherals — 6.4%

    

Apple, Inc. (a)

     225,200        25,458,860   

Samsung Electronics Co. Ltd.

     3,300        4,807,316   
   

 

 

  
              30,266,176   

Total Common Stocks — 95.3%

             449,677,425   
   
Preferred Stocks              

Internet & Direct Marketing Retail — 0.6%

    

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

     1,054        2,719,320   

Internet Software & Services — 2.6%

    

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

     90,044        4,458,979   

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

     110,003        4,205,415   

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

     1,025,063        3,454,462   
   

 

 

  
              12,118,856   

Software — 0.3%

    

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

     466,730        1,376,854   

Total Preferred Stocks — 3.5%

             16,215,030   

Total Long-Term Investments

(Cost — $347,037,115) — 98.8%

             465,892,455   
   
                
Short-Term Securities   Shares     Value  

BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.20% (f)(g)

     214,773      $ 214,773   
    

Beneficial

Interest

(000)

         

BlackRock Liquidity Series, LLC Money Market Series, 0.51% (f)(g)(h)

   $ 944        944,000   

Total Short-Term Securities

(Cost — $1,158,772) — 0.2%

             1,158,773   

Total Investments Before Options Written

(Cost — $348,195,887*) — 99.0%

             467,051,228   
   
Options Written              

(Premiums Received — $4,017,932) — (1.1)%

             (5,098,115 ) 

Total Investments Net of Options Written — 97.9%

       461,953,113   

Other Assets Less Liabilities — 2.1%

       9,834,768   
   

 

 

  

Net Assets — 100.0%

     $ 471,787,881   
   

 

 

  
 
      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

    $ 349,263,887   
  

 

 

  

Gross unrealized appreciation

    $ 119,761,348   

Gross unrealized depreciation

      (1,974,007 ) 
  

 

 

  

Net unrealized appreciation

    $ 117,787,341   
  

 

 

  

 

(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) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration to qualified institutional investors.

 

(d) Security, or a portion of security, is on loan.

 

(e) Restricted security as to resale, excluding 144A securities. As of report date, the Trust held restricted securities with a current value of $16,215,030 and an original cost of $13,409,970 which was 3.4% of its net assets.

 

(f) Current yield as of period end.

 

(g) During the period ended September 30, 2016, 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:

 

 

2         SEPTEMBER 30, 2016     

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

 

 

Affiliates   

Shares/

Beneficial Interest

Held at

December 31,

2015

     

Net

Activity

    

Shares/

Beneficial Interest
Held at
September 30,
2016

      Value at
September 30,
2016		      Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

      604,146         (604,146 )      —         —         $    5,708   

BlackRock Liquidity Funds, T-Fund, Institutional Class

      —         214,773        214,773         $   214,773         281   

BlackRock Liquidity Series, LLC, Money Market Series

      $119,000         $ 825,000        $944,000         944,000         109,726 1 

Total

                      $1,158,773         $115,715   
          

 

 

  

 

  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.

 

(h) Security was purchased with the cash collateral from loaned securities. The Trust may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series LLC, Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

 

•  

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 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  

Advanced Micro Devices

      Call         10/07/16        USD         6.50           285         $ (13,110 ) 

Akamai Technologies, Inc.

      Call         10/07/16        USD         54.50           100           (1,500 ) 

Alibaba Group Holding Ltd. — ADR

      Call         10/07/16        USD         94.00           92           (109,710 ) 

Alphabet, Inc., Class A

      Call         10/07/16        USD         810.00           22           (7,920 ) 

Amazon.com, Inc.

      Call         10/07/16        USD         777.50           8           (48,400 ) 

Apple, Inc.

      Call         10/07/16        USD         108.00           19           (9,690 ) 

Electronic Arts, Inc.

      Call         10/07/16        USD         83.00           50           (13,350 ) 

Facebook, Inc., Class A

      Call         10/07/16        USD         126.00           231           (59,829 ) 

MasterCard, Inc., Class A

      Call         10/07/16        USD         96.00           13           (7,442 ) 

Micron Technology, Inc.

      Call         10/07/16        USD         16.50           160           (23,840 ) 

Netflix, Inc.

      Call         10/07/16        USD         102.00           55           (2,338 ) 

NXP Semiconductors NV

      Call         10/07/16        USD         91.50           64           (70,720 ) 

Priceline Group, Inc.

      Call         10/07/16        USD         1,450.00           4           (11,780 ) 

salesforce.com, Inc.

      Call         10/07/16        USD         78.00           60           (360 ) 

Visa, Inc., A Shares

      Call         10/07/16        USD         83.00           104           (5,200 ) 

Zayo Group Holdings, Inc.

      Call         10/07/16        USD         30.01           112           (2,749 ) 

Sabre Corp.

      Call         10/12/16        USD         27.01           35           (5,924 ) 

Alibaba Group Holding Ltd. — ADR

      Call         10/14/16        USD         98.50           162           (123,120 ) 

Amazon.com, Inc.

      Call         10/14/16        USD         770.00           21           (143,850 ) 

Amazon.com, Inc.

      Call         10/14/16        USD         785.00           21           (113,295 ) 

Apple, Inc.

      Call         10/14/16        USD         106.00           38           (27,265 ) 

Apple, Inc.

      Call         10/14/16        USD         108.00           19           (10,118 ) 

Broadcom Ltd.

      Call         10/14/16        USD         177.50           125           (15,000 ) 

Cisco Systems, Inc.

      Call         10/14/16        USD         31.50           23           (770 ) 

Cisco Systems, Inc.

      Call         10/14/16        USD         32.00           24           (312 ) 

Facebook, Inc., Class A

      Call         10/14/16        USD         128.00           119           (20,528 ) 

MasterCard, Inc., Class A

      Call         10/14/16        USD         99.50           71           (18,460 ) 

Microsoft Corp.

      Call         10/14/16        USD         57.00           58           (5,771 ) 

Microsoft Corp.

      Call         10/14/16        USD         58.00           108           (4,482 ) 

NVIDIA Corp.

      Call         10/14/16        USD         62.50           121           (75,625 ) 

PayPal Holdings, Inc.

      Call         10/14/16        USD         38.00           96           (29,520 ) 

salesforce.com, Inc.

      Call         10/14/16        USD         76.00           97           (1,940 ) 

58.com, Inc. — ADR

      Call         10/21/16        USD         50.00           60           (4,050 ) 

58.com, Inc. — ADR

      Call         10/21/16        USD         55.00           80           (1,000 ) 

Activision Blizzard, Inc.

      Call         10/21/16        USD         45.00           10           (540 ) 

Activision Blizzard, Inc.

      Call         10/21/16        USD         45.50           250           (9,250 ) 

Advanced Micro Devices

      Call         10/21/16        USD         7.00           285           (11,400 ) 

Alibaba Group Holding Ltd. — ADR

      Call         10/21/16        USD         95.00           92           (102,350 ) 

Alphabet, Inc., Class A

      Call         10/21/16        USD         810.00           47           (38,540 ) 

Amazon.com, Inc.

      Call         10/21/16        USD         810.00           11           (38,665 ) 

Apple, Inc.

      Call         10/21/16        USD         105.00           23           (18,973 ) 

 

 

          SEPTEMBER 30, 2016    3

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

 

Description    Put/
Call		        Expiration
Date		     

Strike

Price

        Contracts        Value  

Apple, Inc.

      Call         10/21/16        USD         110.00           136         $ (52,700 ) 

Applied Materials, Inc.

      Call         10/21/16        USD         30.00           46           (3,565 ) 

Applied Materials, Inc.

      Call         10/21/16        USD         31.50           215           (4,730 ) 

Atlassian Corp. PLC, Class A

      Call         10/21/16        USD         30.00           142           (18,105 ) 

Autodesk, Inc.

      Call         10/21/16        USD         65.00           69           (53,992 ) 

Autodesk, Inc.

      Call         10/21/16        USD         67.50           69           (37,432 ) 

Cisco Systems, Inc.

      Call         10/21/16        USD         32.00           260           (5,200 ) 

Coherent, Inc.

      Call         10/21/16        USD         105.00           70           (43,750 ) 

Crown Castle International Corp.

      Call         10/21/16        USD         95.00           113           (16,385 ) 

Digital Realty Trust, Inc.

      Call         10/21/16        USD         100.00           95           (8,075 ) 

Equifax, Inc.

      Call         10/21/16        USD         135.00           48           (9,480 ) 

Equinix, Inc.

      Call         10/21/16        USD         370.00           88           (25,520 ) 

Eros International PLC

      Call         10/21/16        USD         17.50           510           (15,300 ) 

Euronet Worldwide, Inc.

      Call         10/21/16        USD         80.00           140           (44,450 ) 

Expedia, Inc.

      Call         10/21/16        USD         115.00           45           (20,025 ) 

Fabrinet

      Call         10/21/16        USD         40.00           123           (62,115 ) 

Fidelity National Information Services, Inc.

      Call         10/21/16        USD         80.00           194           (4,656 ) 

Flex Ltd.

      Call         10/21/16        USD         13.00           256           (17,536 ) 

Global Payments, Inc.

      Call         10/21/16        USD         80.00           87           (10,005 ) 

GoDaddy, Inc., Class A

      Call         10/21/16        USD         34.00           100           (12,750 ) 

InterXion Holding NV

      Call         10/21/16        USD         38.00           236           (7,670 ) 

Lam Research Corp.

      Call         10/21/16        USD         92.50           84           (34,440 ) 

LINE Corp. — ADR

      Call         10/21/16        USD         45.00           85           (36,975 ) 

LINE Corp. — ADR

      Call         10/21/16        USD         47.50           85           (23,588 ) 

MACOM Technology Solutions Holdings, Inc.

      Call         10/21/16        USD         40.00           91           (28,210 ) 

MACOM Technology Solutions Holdings, Inc.

      Call         10/21/16        USD         41.40           134           (29,671 ) 

Marvell Technology Group Ltd.

      Call         10/21/16        USD         13.00           333           (21,312 ) 

MasterCard, Inc., Class A

      Call         10/21/16        USD         100.00           153           (38,097 ) 

MercadoLibre, Inc.

      Call         10/21/16        USD         175.00           82           (95,530 ) 

Micron Technology, Inc.

      Call         10/21/16        USD         19.00           220           (9,020 ) 

Microsoft Corp.

      Call         10/21/16        USD         60.00           436           (19,620 ) 

Monolithic Power Systems, Inc.

      Call         10/21/16        USD         75.00           100           (59,000 ) 

Netflix, Inc.

      Call         10/21/16        USD         107.00           65           (13,325 ) 

Oclaro, Inc.

      Call         10/21/16        USD         9.00           915           (22,875 ) 

PayPal Holdings, Inc.

      Call         10/21/16        USD         40.00           40           (7,320 ) 

Proofpoint, Inc.

      Call         10/21/16        USD         80.00           84           (8,820 ) 

PTC, Inc.

      Call         10/21/16        USD         45.00           105           (7,612 ) 

Square, Inc., Class A

      Call         10/21/16        USD         12.00           440           (9,900 ) 

Square, Inc., Class A

      Call         10/21/16        USD         13.00           226           (2,260 ) 

Symantec Corp.

      Call         10/21/16        USD         26.00           320           (5,920 ) 

Take-Two Interactive Software, Inc.

      Call         10/21/16        USD         46.00           145           (10,875 ) 

Yandex NV, Class A

      Call         10/21/16        USD         22.00           104           (3,640 ) 

Zayo Group Holdings, Inc.

      Call         10/21/16        USD         30.00           112           (5,880 ) 

Advanced Micro Devices

      Call         10/28/16        USD         7.50           570           (16,530 ) 

Akamai Technologies, Inc.

      Call         10/28/16        USD         56.50           60           (8,280 ) 

Alphabet, Inc., Class A

      Call         10/28/16        USD         827.50           31           (38,440 ) 

Amazon.com, Inc.

      Call         10/28/16        USD         870.00           43           (73,960 ) 

Apple, Inc.

      Call         10/28/16        USD         110.00           23           (11,845 ) 

Apple, Inc.

      Call         10/28/16        USD         116.00           331           (69,345 ) 

Applied Materials, Inc.

      Call         10/28/16        USD         31.00           217           (9,982 ) 

Expedia, Inc.

      Call         10/28/16        USD         127.00           31           (6,122 ) 

Facebook, Inc., Class A

      Call         10/28/16        USD         132.00           123           (20,726 ) 

Marvell Technology Group Ltd.

      Call         10/28/16        USD         13.50           235           (10,692 ) 

MasterCard, Inc., Class A

      Call         10/28/16        USD         103.00           72           (11,376 ) 

Microsoft Corp.

      Call         10/28/16        USD         58.00           166           (21,580 ) 

Netflix, Inc.

      Call         10/28/16        USD         106.00           57           (14,991 ) 

NXP Semiconductors NV

      Call         10/28/16        USD         89.00           100           (142,500 ) 

PayPal Holdings, Inc.

      Call         10/28/16        USD         39.50           70           (16,030 ) 

PayPal Holdings, Inc.

      Call         10/28/16        USD         40.50           31           (5,162 ) 

Priceline Group, Inc.

      Call         10/28/16        USD         1,470.00           4           (13,680 ) 

salesforce.com, Inc.

      Call         10/28/16        USD         76.50           80           (3,200 ) 

ServiceNow, Inc.

      Call         10/28/16        USD         83.50           67           (15,578 ) 

Visa, Inc., A Shares

      Call         10/28/16        USD         83.00           177           (30,090 ) 

Yandex NV, Class A

      Call         10/28/16        USD         23.50           180           (5,400 ) 

Alibaba Group Holding Ltd. — ADR

      Call         11/04/16        USD         109.00           71           (23,430 ) 

 

 

4         SEPTEMBER 30, 2016     

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

 

Description    Put/
Call		        Expiration
Date		       

Strike

Price

        Contracts        Value  

Alphabet, Inc., Class A

      Call           11/04/16           USD         822.50           31         $ (48,825 ) 

Apple, Inc.

      Call           11/04/16           USD         114.00           76           (23,370 ) 

Applied Materials, Inc.

      Call           11/04/16           USD         30.50           115           (8,568 ) 

Broadcom Ltd.

      Call           11/04/16           USD         175.00           100           (42,500 ) 

Electronic Arts, Inc.

      Call           11/04/16           USD         84.00           100           (42,000 ) 

Facebook, Inc., Class A

      Call           11/04/16           USD         132.00           117           (32,350 ) 

MasterCard, Inc., Class A

      Call           11/04/16           USD         103.00           43           (7,632 ) 

Microsoft Corp.

      Call           11/04/16           USD         58.50           108           (12,312 ) 

Microsoft Corp.

      Call           11/04/16           USD         59.00           108           (10,098 ) 

PayPal Holdings, Inc.

      Call           11/04/16           USD         40.50           31           (5,487 ) 

Visa, Inc., A Shares

      Call           11/04/16           USD         83.50           84           (13,734 ) 

Yandex NV, Class A

      Call           11/04/16           USD         23.00           110           (4,675 ) 

Visa, Inc., A Shares

      Call           11/11/16           USD         83.00           177           (38,320 ) 

Yandex NV, Class A

      Call           11/11/16           USD         23.00           110           (6,325 ) 

Activision Blizzard, Inc.

      Call           11/18/16           USD         45.00           368           (54,464 ) 

Alibaba Group Holding Ltd. — ADR

      Call           11/18/16           USD         105.00           56           (33,040 ) 

Apple, Inc.

      Call           11/18/16           USD         120.00           123           (16,912 ) 

Atlassian Corp. PLC, Class A

      Call           11/18/16           USD         30.00           60           (12,600 ) 

Computer Sciences Corp.

      Call           11/18/16           USD         50.00           147           (52,185 ) 

Digital Realty Trust, Inc.

      Call           11/18/16           USD         100.00           160           (34,400 ) 

Electronic Arts, Inc.

      Call           11/18/16           USD         85.00           107           (41,998 ) 

Flex Ltd.

      Call           11/18/16           USD         14.00           360           (11,700 ) 

Microsoft Corp.

      Call           11/18/16           USD         60.00           428           (30,816 ) 

New Relic, Inc.

      Call           11/18/16           USD         40.00           155           (22,088 ) 

NVIDIA Corp.

      Call           11/18/16           USD         70.00           159           (58,035 ) 

PayPal Holdings, Inc.

      Call           11/18/16           USD         41.00           70           (11,795 ) 

Proofpoint, Inc.

      Call           11/18/16           USD         80.00           84           (22,050 ) 

PTC, Inc.

      Call           11/18/16           USD         45.00           105           (16,012 ) 

ServiceNow, Inc.

      Call           11/18/16           USD         80.00           65           (29,900 ) 

Shopify, Inc., Class A

      Call           11/18/16           USD         45.00           230           (54,625 ) 

Take-Two Interactive Software, Inc.

      Call           11/18/16           USD         46.00           145           (26,462 ) 

Alibaba Group Holding Ltd. — ADR

      Put           10/07/16           USD         90.00           73           (292 ) 

Crown Castle International Corp.

      Put           10/12/16           USD         88.50           94           (1,692 ) 

Apple, Inc.

      Put           10/21/16           USD         109.00           121           (7,502 ) 

Baidu, Inc. — ADR

      Put           10/21/16           USD         175.00           65           (14,722 ) 

Square, Inc., Class A

      Put           10/21/16           USD         11.00           405           (6,075 ) 

Computer Sciences Corp.

      Put           11/18/16           USD         48.00           182           (11,375 ) 

Total

                           $ (3,611,892 ) 
                         

 

 

  

OTC Options Written

 

Description    Put/
Call		      Counterparty    Expiration
Date		   

Strike

Price

      Contracts      Value  

Cielo SA

      Call       Credit Suisse International    10/05/16    BRL      34.25         89,000       $ (871 ) 

Sabre Corp.

      Call       Barclays Bank PLC    10/05/16    USD      27.59         23,000         (22,562 ) 

Xero Ltd.

      Call       Deutsche Bank AG    10/06/16    NZD      20.10         3,600         (222 ) 

Shopify, Inc., Class A

      Call       UBS AG    10/07/16    USD      40.72         13,200         (33,781 ) 

Capgemini SA

      Call       Credit Suisse International    10/11/16    EUR      88.69         9,900         (10,852 ) 

Largan Precision Co. Ltd.

      Call       Morgan Stanley & Co. International PLC    10/11/16    TWD      3,926.00         11,000         (18,107 ) 

Naspers Ltd., N Shares

      Call       UBS AG    10/11/16    ZAR      2,258.99         2,800         (23,697 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

      Call       Morgan Stanley & Co. International PLC    10/11/16    TWD      178.77         96,000         (17,849 ) 

Zendesk, Inc.

      Call       Deutsche Bank AG    10/11/16    USD      31.42         15,500         (7,524 ) 

Sabre Corp.

      Call       Barclays Bank PLC    10/12/16    USD      28.38         21,200         (9,610 ) 

Sony Corp.

      Call       JPMorgan Chase Bank N.A.    10/12/16    JPY      3,475.22         43,500         (14,264 ) 

Yoox Net-A-Porter Group SpA

      Call       Morgan Stanley & Co. International PLC    10/12/16    EUR      29.48         25,000         (1,605 ) 

Lam Research Corp.

      Call       Morgan Stanley & Co. International PLC    10/13/16    USD      93.83         11,500         (31,634 ) 

Altium Ltd.

      Call       Citibank N.A.    10/14/16    AUD      7.56         27,700         (36,142 ) 

Altium Ltd.

      Call       Deutsche Bank AG    10/14/16    AUD      7.40         56,000         (79,461 ) 

Lattice Semiconductor Corp.

      Call       UBS AG    10/14/16    USD      6.59         52,000         (17,691 ) 

Atlassian Corp. PLC, Class A

      Call       Barclays Bank PLC    10/18/16    USD      31.66         6,000         (3,463 ) 

Atlassian Corp. PLC, Class A

      Call       UBS AG    10/18/16    USD      30.25         9,200         (9,909 ) 

Samsung Electronics Co. Ltd.

      Call       Deutsche Bank AG    10/19/16    KRW      1,668,600.00         1,100         (18,326 ) 

Sony Corp.

      Call       Goldman Sachs International    10/19/16    JPY      3,424.75         6,000         (3,894 ) 

 

 

          SEPTEMBER 30, 2016    5

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

 

Description    Put/
Call		      Counterparty      Expiration
Date		     

Strike

Price

      Contracts      Value  

Taiwan Semiconductor Manufacturing Co. Ltd.

      Call         JPMorgan Chase Bank N.A.         10/19/16         TWD         187.68         291,000       $ (25,413 ) 

Tencent Holdings Ltd.

      Call         Citibank N.A.         10/19/16         HKD         207.85         185,000         (220,103 ) 

Xero Ltd.

      Call         UBS AG         10/19/16         NZD         20.39         3,600         (490 ) 

Scout24 AG

      Call         Goldman Sachs International         10/20/16         EUR         34.21         7,000         (173 ) 

ASML Holding NV

      Call         UBS AG         10/25/16         EUR         99.21         19,000         (40,326 ) 

DeNA Co. Ltd.

      Call         JPMorgan Chase Bank N.A.         10/27/16         JPY         3,936.60         28,000         (23,990 ) 

STMicroelectronics NV

      Call         Morgan Stanley & Co. International PLC         10/27/16         EUR         7.11         126,000         (42,382 ) 

Global Payments, Inc.

      Call         Bank of America N.A.         10/28/16         USD         76.69         11,200         (29,007 ) 

GoDaddy, Inc., Class A

      Call         Deutsche Bank AG         10/28/16         USD         34.23         9,600         (12,478 ) 

InterXion Holding NV

      Call         UBS AG         10/28/16         USD         38.14         4,200         (1,758 ) 

Square, Inc., Class A

      Call         UBS AG         10/28/16         USD         11.68         34,000         (15,080 ) 

Talend SA — ADR

      Call         Goldman Sachs International         10/28/16         USD         26.99         15,000         (27,929 ) 

Zendesk, Inc.

      Call         UBS AG         10/31/16         USD         30.75         16,000         (20,788 ) 

Nintendo Co. Ltd.

      Call         JPMorgan Chase Bank N.A.         11/02/16         JPY         28,514.10         1,400         (13,214 ) 

Nintendo Co. Ltd.

      Call         Morgan Stanley & Co. International PLC         11/02/16         JPY         26,541.07         4,600         (83,291 ) 

Scout24 AG

      Call         Credit Suisse International         11/02/16         EUR         30.28         6,000         (6,349 ) 

Xero Ltd.

      Call         Bank of America N.A.         11/02/16         NZD         20.29         3,600         (960 ) 

Naspers Ltd., N Shares

      Call         Deutsche Bank AG         11/03/16         ZAR         2,516.46         8,500         (16,696 ) 

Adobe Systems, Inc.

      Call         Barclays Bank PLC         11/04/16         USD         100.94         11,000         (92,292 ) 

Crown Castle International Corp.

      Call         Citibank N.A.         11/07/16         USD         96.50         18,200         (26,641 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

      Call         Bank of America N.A.         11/08/16         TWD         179.12         102,000         (28,613 ) 

ASML Holding NV

      Call         UBS AG         11/09/16         EUR         97.17         3,000         (11,176 ) 

Nintendo Co. Ltd.

      Call         Bank of America N.A.         11/09/16         JPY         28,927.45         9,000         (87,734 ) 

Xero Ltd.

      Call         Deutsche Bank AG         11/09/16         NZD         19.52         4,000         (2,125 ) 

Microsemi Corp.

      Call         Morgan Stanley & Co. International PLC         11/15/16         USD         41.00         17,000         (50,627 ) 

Scout24 AG

      Call         Credit Suisse International         11/15/16         EUR         30.45         5,500         (6,661 ) 

Naspers Ltd., N Shares

      Call         Bank of America N.A.         11/16/16         ZAR         2,435.40         2,200         (10,311 ) 

Tencent Holdings Ltd.

      Call         Citibank N.A.         11/18/16         HKD         220.93         55,000         (43,141 ) 

BE Semiconductor Industries NV

      Call         Credit Suisse International         11/22/16         EUR         29.40         20,700         (43,236 ) 

Xero Ltd.

      Call         Deutsche Bank AG         11/22/16         NZD         19.45         5,000         (3,256 ) 

Adobe Systems, Inc.

      Call         Barclays Bank PLC         11/29/16         USD         100.94         11,000         (99,971 ) 

Lattice Semiconductor Corp.

      Call         UBS AG         11/29/16         USD         6.81         52,000         (18,346 ) 

Altium Ltd.

      Call         Bank of America N.A.         11/30/16         AUD         9.27         76,600         (20,202 ) 

Total

                      $ (1,486,223 ) 
                    

 

 

  

 

 

6         SEPTEMBER 30, 2016     

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

 

      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 methodologies 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3.

Changes in valuation methodologies 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.

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:

                  

Communications Equipment

      $ 5,115,191         —         —        $ 5,115,191  

Diversified Telecommunication Services

        1,859,846         —         —          1,859,846  

Electronic Equipment, Instruments & Components

        6,435,336       $ 3,168,789         —          9,604,125  

Equity Real Estate Investment Trusts (REITs)

        23,863,539         —         —          23,863,539  

Household Durables

        —         4,661,475         —          4,661,475  

Internet & Direct Marketing Retail

        33,613,833         2,104,398       $ 86,204          35,804,435  

Internet Software & Services

        87,472,740         23,618,707         —          111,091,447  

IT Services

        52,250,866         2,794,253         —          55,045,119  

Media

        2,261,309         6,646,000         —          8,907,309  

Professional Services

        1,870,662         —         —          1,870,662  

Semiconductors & Semiconductor Equipment

        47,540,284         19,406,730         —          66,947,014  

Software

        79,475,753         15,165,334         —          94,641,087  

Technology Hardware, Storage & Peripherals

        25,458,860         4,807,316         —          30,266,176  

Preferred Stocks

        —         —         16,215,030          16,215,030  

Short-Term Securities

        214,773         944,000         —          1,158,773  
    

 

 

  

Total

      $                     367,432,992       $                     83,317,002       $                     16,301,234        $                     467,051,228  
    

 

 

  
                 

Derivative Financial Instruments1

                                          

Liabilities:

                  

Equity contracts

       $ (3,571,856 )      $ (1,526,259 )       —         $ (5,098,115 )
    

 

 

  

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

       

         

 

 

          SEPTEMBER 30, 2016    7

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

 

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

      $ 102,156          —         —        $ 102,156  

Cash pledged as collateral for exchange-traded options written

        5,527,620          —         —          5,527,620  

Cash pledged as collateral for OTC derivatives

        2,370,000          —         —          2,370,000  

Liabilities:

                   

Bank overdraft

        —        $ (96,248 )       —          (96,248 )

Collateral on securities loaned at value

        —          (944,000 )       —          (944,000 )
    

 

 

  

Total

      $                     7,999,776        $                     (1,040,248 )        —        $                     6,959,528  
    

 

 

  

 

Transfers between Level 1 and Level 2 were as follows:

 

  

     

Transfers into

Level 1

   

Transfers out of

Level 1 1

  

Transfers into

Level 2 1

   

Transfers out of

Level 2

Assets:

                   

Long-Term Investments:

                   

Common Stocks

        —          $ (6,171,379 )     $                     6,171,379          —  
    

 

 

  

 

  1   

External pricing service used to reflect any significant market movements between the time the Trust valued such foreign securities and the earlier closing of foreign markets.

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:

 

      Common
Stocks		   Preferred
Stocks		    Total

Assets:

              

Opening Balance, as of December 31, 2015

        —       $ 15,696,540        $ 15,696,540  

Transfers into Level 3

              $ 265,268         —          265,268  

Transfers out of Level 3

        —         —          —  

Accrued discounts/premiums

        —         —          —  

Net realized gain (loss)

        —         —          —  

Net change in unrealized appreciation/depreciation1,2

        (178,964 )       518,490          339,526  

Purchases

        —         —          —  

Sales

        —         —          —  
    

 

 

  

Closing Balance, as of September 30, 2016

              $ 86,304       $ 16,215,030        $ 16,301,334  
    

 

 

  

Net change in unrealized appreciation/depreciation on investments still held at September 30, 20162

              $ (178,964 )     $ 518,490        $ 339,526  
    

 

 

  

 

  1   

Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

 

  2   

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at September 30, 2016 is generally due to investments no longer held or categorized as Level 3 at period end.

The following table summarizes the valuation methodologies 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. The table does not include Level 3 investments with values based upon unadjusted third party pricing information in the amount of $86,204.

 

      Value       Valuation Methodologies     

Unobservable

Inputs

    

Range of
Unobservable Inputs

Utilized

     

Weighted Average of

Unobservable Inputs

  

Assets:

              

Preferred Stocks

        $ 16,215,030         Market Approach         Discount Rate2        25.00%         —   
           Revenue Growth Rate1        23.00% - 86.00%         50.75%   
           Revenue Growth Rate1        127.00% - 253.00%         155.59%   
           Revenue Multiple1        4.50x - 27.00x         10.93x   
           Scenario Probability1        15.00% - 80.00%         —   
           Time to Exit2        1-3 years         —   
  

 

 

  

Total

        $ 16,215,030              
  

 

 

  

 

  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.

 

 

8         SEPTEMBER 30, 2016     

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 22, 2016

 

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 22, 2016

 

By:  

   /s/ Neal J. Andrews

   
  Neal J. Andrews   
  Chief Financial Officer (principal financial officer) of
  BlackRock Science and Technology Trust

 

Date: November 22, 2016