N-Q 1 d542742dnq.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: 12/31/2018

Date of reporting period: 03/31/2018

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited) 

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks — 96.8%

 

Chemicals — 0.9%  

Showa Denko

     143,500      $ 6,013,047  
    

 

 

  
Consumer Finance — 0.4%  

Jianpu Technology, Inc., ADR(a)(b)

     481,982        2,665,360  
    

 

 

  
Diversified Consumer Services — 0.4%  

Sunlands Online Education Group, ADR(a)(b)

     322,556        2,677,215  
    

 

 

  
Electronic Equipment, Instruments & Components — 2.0%  

Flex Ltd.(b)(c)

     222,400        3,631,792  

Hangzhou Hikvision Digital Technology Co., Ltd.

     482,290        3,211,062  

Isra Vision AG

     7,745        1,633,314  

Sunny Optical Technology Group Co. Ltd.

     243,500        4,569,107  
    

 

 

  
       13,045,275  
Household Durables — 0.5%  

Roku, Inc.(b)(c)

     101,197        3,147,227  
    

 

 

  
Internet & Direct Marketing Retail — 6.9%  

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

     24,060        34,823,001  

Ensogo Ltd.(b)(d)

     173,282        —  

Netflix, Inc.(b)(c)

     37,330        11,025,416  
    

 

 

  
       45,848,417  
Internet Software & Services — 25.0%  

58.com, Inc. — ADR(b)(c)

     52,400        4,184,664  

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

     125,640        23,059,966  

Alphabet, Inc., Class A(b)(c)

     30,800        31,943,912  

Baidu, Inc. — ADR(b)(c)

     35,600        7,945,564  

Bandwidth, Inc., Class A(b)

     102,150        3,336,219  

Delivery Hero AG(b)(e)

     93,637        4,522,006  

Dropbox, Inc., Class A(b)

     51,474        1,608,563  

Facebook, Inc., Class A(b)(c)

     92,400        14,764,596  

Kakao Corp.

     36,761        4,466,225  

MercadoLibre, Inc.(c)

     14,700        5,238,933  

MongoDB, Inc.(b)

     33,811        1,467,397  

Okta, Inc.(b)(c)

     99,850        3,979,022  

SendGrid, Inc.(b)

     115,575        3,252,281  

Shopify, Inc., Class A(b)(c)

     34,300        4,273,437  

Tencent Holdings Ltd.

     688,600        36,963,730  

Wix.com Ltd.(b)(c)

     54,500        4,335,475  

Yandex NV, Class A(b)(c)

     244,380        9,640,791  
    

 

 

  
       164,982,781  
IT Services — 11.6%  

DXC Technology Co.(c)

     42,100        4,232,313  

GMO Payment Gateway, Inc.

     38,300        3,780,857  

InterXion Holding NV(b)(c)

     77,700        4,825,947  

Mastercard, Inc., Class A(c)

     93,300        16,342,428  

Pagseguro Digital Ltd., Class A(b)

     296,008        11,343,027  

PayPal Holdings, Inc.(b)(c)

     92,600        7,025,562  

Square, Inc., Class A(b)(c)

     286,500        14,095,800  

 

Security   Shares      Value  
IT Services (continued)  

Visa, Inc., Class A(c)

     128,700      $ 15,395,094  
    

 

 

  
       77,041,028  
Life Sciences Tools & Services — 0.5%  

Samsung Biologics Co. Ltd.(b)(e)

     7,160        3,295,231  
    

 

 

  
Media — 1.2%  

Naspers Ltd., Class N

     33,100        8,099,996  
    

 

 

  
Professional Services — 0.1%  

UT Group Co., Ltd.(b)

     12,100        398,008  
    

 

 

  
Semiconductors & Semiconductor Equipment — 17.1%  

Advanced Micro Devices, Inc.(b)(c)

     283,000        2,844,150  

Aixtron SE(b)

     210,100        4,065,435  

ams AG

     47,530        4,991,135  

Applied Materials, Inc.(c)

     132,300        7,357,203  

ASML Holding NV

     68,800        13,642,589  

ASPEED Technology, Inc.

     93,000        2,918,679  

Broadcom Ltd.(c)

     53,396        12,582,767  

Cree, Inc.(b)(c)

     68,100        2,745,111  

Infineon Technologies AG

     149,800        4,028,605  

IQE PLC(b)

     1,572,500        2,853,124  

Lam Research Corp.(c)

     43,900        8,918,724  

MediaTek, Inc.

     310,000        3,566,934  

Megachips Corp.(a)(b)

     87,600        3,070,153  

NVIDIA Corp.(c)

     37,600        8,707,784  

ON Semiconductor Corp.(b)(c)

     200,000        4,892,000  

Silicon Laboratories, Inc.(b)(c)

     32,700        2,939,730  

SOITEC(b)

     91,225        6,636,048  

STMicroelectronics NV

     240,100        5,343,117  

Taiwan Semiconductor Manufacturing Co. Ltd.

     1,281,000        10,850,324  
    

 

 

  
       112,953,612  
Software — 25.3%  

Activision Blizzard, Inc.(c)

     145,300        9,801,938  

Adobe Systems, Inc.(b)(c)

     57,100        12,338,168  

Altair Engineering, Inc.(b)

     158,513        4,970,968  

Altium Ltd.

     207,900        3,213,639  

Autodesk, Inc.(b)(c)

     65,000        8,162,700  

BlackBerry Ltd.(b)(c)

     226,600        2,605,900  

Electronic Arts, Inc.(b)(c)

     44,400        5,383,056  

FireEye, Inc.(b)(c)

     247,090        4,183,234  

ForeScout Technologies, Inc.(b)

     88,655        2,875,968  

Guidewire Software, Inc.(b)(c)

     40,900        3,305,947  

Kingdee International Software Group Co., Ltd.(b)

     2,972,000        3,027,385  

Linx SA

     619,100        3,795,479  

Microsoft Corp.(c)

     375,280        34,251,806  

Nintendo Co. Ltd.

     25,900        11,506,673  

Proofpoint, Inc.(b)(c)

     45,800        5,205,170  

PTC, Inc.(b)(c)

     55,300        4,313,953  

RIB Software SE

     131,900        2,810,714  
 

 

 

     1  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

(Percentages shown are based on Net Assets)

 

Security

   Shares     Value  
Software (continued)  

SailPoint Technologies Holding, Inc.(b)

     198,822     $ 4,113,627  

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

     120,500       14,014,150  

ServiceNow, Inc.(b)(c)

     34,210       5,660,044  

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

     79,000       7,724,620  

UbiSoft Entertainment SA(b)

     77,447       6,554,492  

Xero Ltd.(b)

     120,100       3,115,207  

Zendesk, Inc.(b)(c)

     93,900       4,494,993  
   

 

 

  
    167,429,831  
Technology Hardware, Storage & Peripherals — 4.9%  

Apple, Inc.(c)

     157,510       26,427,028  

Samsung Electronics Co. Ltd.

     2,600       6,074,837  
   

 

 

  
    32,501,865  
   

 

 

  

Total Common Stocks — 96.8%
(Cost — $336,998,905)

 

     640,098,893  
   

 

 

  

Preferred Stocks — 2.4%

 

Internet & Direct Marketing Retail — 0.1%  

Jasper Infotech Private Ltd., Series I, (Aquired 08/08/15, Cost $1,998,435), 0.00%(b)(d)(f)

     1,054       534,378  
   

 

 

  
Internet Software & Services — 2.3%  

Uber Technologies, Inc., Series E, (acquired 12/04/14, cost $3,000,048), 0.00%(b)(d)(f)

     90,044       3,083,106  

 

Security   Shares     Value  
Internet Software & Services (continued)  

Xiaoju Kuaizhi, Inc., Series A-17 (Acquired 7/28/15, cost $3,016,964), 0.00%(b)(d)(f)

     110,003     $ 5,602,453  

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

     1,025,063       6,591,155  
   

 

 

  
    15,276,714  
   

 

 

  

Total Preferred Stocks — 2.4%
(Cost — $11,909,969)

 

     15,811,092  
   

 

 

  

Total Long-Term Investments — 99.2%
(Cost — $348,908,874)

 

     655,909,985  
   

 

 

  
Short-Term Securities — 0.9%  

BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.58%(g)(i)

     3,701,779       3,701,779  

SL Liquidity Series, LLC, Money Market Series, 1.61%(g)(h)(i)

     1,845,691       1,845,506  
   

 

 

  

Total Short-Term Securities — 0.9%
(Cost — $5,547,285)

 

     5,547,285  
   

 

 

  

Total Investments Before Options Written — 100.1%
(Cost — $354,456,159)

 

     661,457,270  
   

 

 

  
Options Written — (0.9)%
(Premiums Received — $7,803,203)		     (5,726,626)  
   

 

 

  

Total Investments, Net of Options Written — 99.2%
(Cost — $346,652,956)

 

     655,730,644  

Other Assets Less Liabilities — 0.8%

 

     5,366,588  
   

 

 

  

Net Assets — 100.0%

 

   $ 661,097,232  
   

 

 

  

 

 
(a)  Security, or a portion of the security, is on loan.
(b) Non-income producing security.
(c) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(d) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(e) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(f) Restricted security as to resale, excluding 144A securities. As of period end, the Trust held restricted securities with a current value of $15,811,092 and an original cost of $11,909,969 which was 2.4% of its net assets.
(g) Annualized 7-day yield as of period end.
(h) Security was purchased with the cash collateral from loaned securities.

 

 

2   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

 

(i) During the period ended March 31, 2018, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
12/31/17		      Net
Activity		      Shares
Held at
03/31/18		      Value at
03/31/18		      Income      Net
Realized
Gain
(Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      4,696,297        (994,518 )       3,701,779      $ 3,701,779      $ 12,137      $ —      $ —  

SL Liquidity Series, LLC, Money Market Series

      3,497,053        (1,651,362 )       1,845,691        1,845,506        115,892 (b)       494        169  
           

 

 

     

 

 

     

 

 

     

 

 

  
            $ 5,547,285      $ 128,029      $ 494      $ 169  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a)  Includes net capital gain distributions, if applicable.  
  (b)   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 sector classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Portfolio Abbreviations

ADR — American Depositary Receipts

AUD — Australian Dollar

BRL — Brazilian Real

CHF — Swiss Franc

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

JPY — Japanese Yen

USD — U.S. Dollar

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

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

Call

                 

Advanced Micro Devices, Inc.

    495      04/06/18        USD       12.50       USD       497     $ (990 ) 

Alphabet, Inc., Class A

    5      04/06/18        USD       1,150.00       USD       519       (100 ) 

Apple, Inc.

    5      04/06/18        USD       177.50       USD       84       (80 ) 

Applied Materials, Inc.

    50      04/06/18        USD       60.00       USD       278       (700 ) 

Microsoft Corp.

    568      04/06/18        USD       95.00       USD       5,184       (16,472 ) 

Netflix, Inc.

    38      04/06/18        USD       282.50       USD       1,122       (58,520 ) 

Shopify, Inc., Class A

    120      04/06/18        USD       136.00       USD       1,495       (8,400 ) 

Visa, Inc., Class A

    62      04/06/18        USD       125.00       USD       742       (868 ) 

Zendesk, Inc.

    82      04/09/18        USD       43.60       USD       393       (40,422 ) 

Activision Blizzard, Inc.

    238      04/13/18        USD       73.50       USD       1,606       (3,808 ) 

Adobe Systems, Inc.

    77      04/13/18        USD       210.00       USD       1,664       (72,958 ) 

Alibaba Group Holding Ltd. — ADR

    95      04/13/18        USD       197.50       USD       1,744       (8,075 ) 

Alphabet, Inc., Class A

    8      04/13/18        USD       1,155.00       USD       830       (1,440 ) 

Amazon.com, Inc.

    21      04/13/18        USD       1,495.00       USD       3,039       (48,458 ) 

Apple, Inc.

    25      04/13/18        USD       180.00       USD       419       (775 ) 

 

 

     3  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

 

Exchange-Traded Options Written (continued)

 

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

Call

                 

Facebook, Inc., Class A

    61      04/13/18        USD       175.00       USD       975     $ (3,050 ) 

Flex Ltd.

    303      04/13/18        USD       18.00       USD       495       (1,212 ) 

Microsoft Corp.

    239      04/13/18        USD       93.50       USD       2,181       (26,888 ) 

NVIDIA Corp.

    75      04/13/18        USD       260.00       USD       1,737       (4,650 ) 

Roku, Inc.

    130      04/13/18        USD       42.00       USD       404       (1,300 ) 

Roku, Inc.

    130      04/13/18        USD       43.50       USD       404       (1,300 ) 

Visa, Inc., Class A

    202      04/13/18        USD       125.00       USD       2,416       (8,686 ) 

Visa, Inc., Class A

    124      04/13/18        USD       126.00       USD       1,483       (3,844 ) 

salesforce.com, Inc.

    86      04/13/18        USD       120.00       USD       1,000       (10,621 ) 

58.com, Inc. — ADR

    92      04/20/18        USD       90.00       USD       735       (5,060 ) 

58.com, Inc. — ADR

    91      04/20/18        USD       85.00       USD       727       (13,195 ) 

Activision Blizzard, Inc.

    132      04/20/18        USD       72.50       USD       890       (6,336 ) 

Activision Blizzard, Inc.

    34      04/20/18        USD       77.50       USD       229       (289 ) 

Adobe Systems, Inc.

    72      04/20/18        USD       230.00       USD       1,556       (14,220 ) 

Alibaba Group Holding Ltd. — ADR

    164      04/20/18        USD       180.00       USD       3,010       (138,580 ) 

Alphabet, Inc., Class A

    5      04/20/18        USD       1,150.00       USD       519       (1,087 ) 

Alphabet, Inc., Class A

    8      04/20/18        USD       1,200.00       USD       830       (600 ) 

Amazon.com, Inc.

    15      04/20/18        USD       1,530.00       USD       2,171       (28,950 ) 

Apple, Inc.

    40      04/20/18        USD       175.00       USD       671       (6,600 ) 

Autodesk, Inc.

    57      04/20/18        USD       140.00       USD       716       (2,365 ) 

Baidu, Inc. — ADR

    49      04/20/18        USD       260.00       USD       1,094       (1,592 ) 

BlackBerry Ltd.

    284      04/20/18        USD       14.00       USD       327       (852 ) 

Broadcom Ltd.

    71      04/20/18        USD       260.00       USD       1,673       (4,970 ) 

Facebook, Inc., Class A

    49      04/20/18        USD       190.00       USD       783       (441 ) 

Flex Ltd.

    178      04/20/18        USD       18.00       USD       291       (623 ) 

Flex Ltd.

    60      04/20/18        USD       19.00       USD       98       (60 ) 

Guidewire Software, Inc.

    144      04/20/18        USD       85.00       USD       1,164       (9,720 ) 

Guidewire Software, Inc.

    80      04/20/18        USD       95.00       USD       647       (800 ) 

InterXion Holding NV

    271      04/20/18        USD       65.00       USD       1,683       (20,325 ) 

Lam Research Corp.

    19      04/20/18        USD       195.00       USD       386       (28,405 ) 

Mercadolibre, Inc.

    84      04/20/18        USD       400.00       USD       2,994       (15,750 ) 

Microsoft Corp.

    281      04/20/18        USD       92.50       USD       2,565       (54,233 ) 

Netflix, Inc.

    50      04/20/18        USD       295.00       USD       1,477       (88,000 ) 

ON Semiconductor Corp.

    265      04/20/18        USD       26.00       USD       648       (10,600 ) 

PTC, Inc.

    103      04/20/18        USD       70.00       USD       804       (97,335 ) 

PayPal Holdings, Inc.

    140      04/20/18        USD       80.00       USD       1,062       (10,990 ) 

Proofpoint, Inc.

    160      04/20/18        USD       125.00       USD       1,818       (10,400 ) 

Silicon Laboratories, Inc.

    179      04/20/18        USD       100.00       USD       1,609       (12,530 ) 

Square, Inc., Class A

    362      04/20/18        USD       54.50       USD       1,781       (29,865 ) 

Take-Two Interactive Software, Inc.

    90      04/20/18        USD       120.00       USD       880       (1,125 ) 

Wix.com Ltd.

    170      04/20/18        USD       80.00       USD       1,352       (57,800 ) 

Wix.com Ltd.

    20      04/20/18        USD       85.00       USD       159       (3,100 ) 

Yandex NV, Class A

    27      04/20/18        USD       44.00       USD       107       (540 ) 

Zendesk, Inc.

    100      04/20/18        USD       45.00       USD       479       (42,000 ) 

salesforce.com, Inc.

    54      04/20/18        USD       130.00       USD       628       (1,026 ) 

Activision Blizzard, Inc.

    81      04/27/18        USD       80.00       USD       546       (648 ) 

Activision Blizzard, Inc.

    23      04/27/18        USD       67.00       USD       155       (6,267 ) 

Alphabet, Inc., Class A

    18      04/27/18        USD       1,100.00       USD       1,867       (31,770 ) 

Apple, Inc.

    40      04/27/18        USD       182.50       USD       671       (2,720 ) 

Autodesk, Inc.

    57      04/27/18        USD       137.00       USD       716       (5,671 ) 

 

 

4   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

    BlackRock Science and Technology Trust (BST)

 

Exchange-Traded Options Written (continued)

 

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

Call

                   

BlackBerry Ltd.

    345      04/27/18        USD        13.00       USD        397     $ (3,450 ) 

Broadcom Ltd.

    32      04/27/18        USD        255.00       USD        754       (6,080 ) 

Broadcom Ltd.

    47      04/27/18        USD        265.00       USD        1,108       (3,995 ) 

Cree, Inc.

    78      04/27/18        USD        42.50       USD        314       (13,416 ) 

Electronic Arts, Inc.

    54      04/27/18        USD        129.00       USD        655       (9,261 ) 

Facebook, Inc., Class A

    103      04/27/18        USD        185.00       USD        1,646       (4,635 ) 

Fireeye, Inc.

    402      04/27/18        USD        18.50       USD        681       (10,854 ) 

Lam Research Corp.

    68      04/27/18        USD        235.00       USD        1,381       (23,120 ) 

Mastercard, Inc., Class A

    175      04/27/18        USD        182.50       USD        3,065       (32,375 ) 

Microsoft Corp.

    57      04/27/18        USD        94.00       USD        520       (10,076 ) 

Microsoft Corp.

    28      04/27/18        USD        95.00       USD        256       (5,456 ) 

NVIDIA Corp.

    62      04/27/18        USD        255.00       USD        1,436       (16,957 ) 

PayPal Holdings, Inc.

    57      04/27/18        USD        82.50       USD        432       (4,588 ) 

Roku, Inc.

    102      04/27/18        USD        38.00       USD        317       (3,570 ) 

Square, Inc., Class A

    361      04/27/18        USD        52.50       USD        1,776       (59,385 ) 

Take-Two Interactive Software, Inc.

    95      04/27/18        USD        110.00       USD        929       (5,700 ) 

Yandex NV, Class A

    142      04/27/18        USD        41.50       USD        560       (18,460 ) 

salesforce.com, Inc.

    93      04/27/18        USD        127.00       USD        1,082       (4,975 ) 

Advanced Micro Devices, Inc.

    530      05/04/18        USD        10.50       USD        533       (31,270 ) 

Alibaba Group Holding Ltd. — ADR

    82      05/04/18        USD        185.00       USD        1,505       (52,480 ) 

Alphabet, Inc., Class A

    8      05/04/18        USD        1,100.00       USD        830       (15,240 ) 

Apple, Inc.

    54      05/04/18        USD        172.50       USD        906       (24,840 ) 

Applied Materials, Inc.

    107      05/04/18        USD        56.00       USD        595       (25,780 ) 

Autodesk, Inc.

    16      05/04/18        USD        127.00       USD        201       (9,124 ) 

BlackBerry Ltd.

    333      05/04/18        USD        13.20       USD        383       (3,677 ) 

Cree, Inc.

    80      05/04/18        USD        42.50       USD        322       (16,657 ) 

Electronic Arts, Inc.

    101      05/04/18        USD        124.00       USD        1,225       (34,088 ) 

Facebook, Inc., Class A

    61      05/04/18        USD        175.00       USD        975       (15,341 ) 

FireEye, Inc.

    92      05/04/18        USD        17.50       USD        156       (8,505 ) 

Flex Ltd.

    120      05/04/18        USD        17.00       USD        196       (5,160 ) 

Mastercard, Inc., Class A

    151      05/04/18        USD        180.00       USD        2,645       (56,248 ) 

Microsoft Corp.

    112      05/04/18        USD        94.00       USD        1,022       (27,720 ) 

NVIDIA Corp.

    69      05/04/18        USD        250.00       USD        1,598       (35,535 ) 

PayPal Holdings, Inc.

    70      05/04/18        USD        81.00       USD        531       (8,610 ) 

ServiceNow, Inc.

    119      05/04/18        USD        167.50       USD        1,969       (85,464 ) 

Shopify, Inc.

    68      05/04/18        USD        132.00       USD        847       (38,080 ) 

Square, Inc., Class A

    362      05/04/18        USD        50.00       USD        1,781       (120,365 ) 

Visa, Inc., Class A

    62      05/04/18        USD        124.00       USD        742       (12,307 ) 

Yandex NV, Class A

    142      05/04/18        USD        41.50       USD        560       (20,590 ) 

Yandex NV, Class A

    32      05/04/18        USD        43.00       USD        126       (4,160 ) 

salesforce.com, Inc.

    94      05/04/18        USD        118.00       USD        1,093       (29,375 ) 

Apple, Inc.

    36      05/11/18        USD        172.50       USD        604       (21,752 ) 

Baidu, Inc. — ADR

    75      05/11/18        USD        237.50       USD        1,674       (45,120 ) 

Roku, Inc.

    194      05/11/18        USD        34.50       USD        603       (46,560 ) 

Adobe Systems, Inc.

    50      05/18/18        USD        220.00       USD        1,080       (34,876 ) 

Advanced Micro Devices, Inc.

    531      05/18/18        USD        11.20       USD        534       (25,395 ) 

Alibaba Group Holding Ltd. — ADR

    98      05/18/18        USD        200.00       USD        1,799       (44,100 ) 

Alphabet, Inc., Class A

    9      05/18/18        USD        1,100.00       USD        933       (21,510 ) 

Amazon.com, Inc.

    50      05/18/18        USD        1,545.00       USD        7,237       (230,125 ) 

Apple, Inc.

    115      05/18/18        USD        180.00       USD        1,929       (31,280 ) 

Applied Materials, Inc.

    107      05/18/18        USD        57.50       USD        595       (26,080 ) 

 

 

   5

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

Exchange-Traded Options Written (continued)

 

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

Call

                   

Broadcom Ltd.

    36      05/18/18      USD      250.00       USD        848       (18,360 ) 

Cree, Inc.

    80      05/18/18      USD      42.00       USD        322       (19,480 ) 

DXC Technology Co.

    149      05/18/18      USD      105.00       USD        1,498       (34,568 ) 

Facebook, Inc., Class A

    121      05/18/18      USD      180.00       USD        1,933       (26,257 ) 

Flex Ltd.

    120      05/18/18      USD      17.00       USD        196       (6,000 ) 

Netflix, Inc.

    47      05/18/18      USD      325.00       USD        1,388       (49,703 ) 

Okta, Inc.

    174      05/18/18      USD      40.00       USD        693       (48,285 ) 

PayPal Holdings, Inc.

    57      05/18/18      USD      80.00       USD        432       (12,369 ) 

Square, Inc., Class A

    490      05/18/18      USD      55.00       USD        2,411       (105,350 ) 

Take-Two Interactive Software, Inc.

    91      05/18/18      USD      105.00       USD        890       (26,617 ) 

Yandex NV, Class A

    145      05/18/18      USD      43.00       USD        572       (18,125 ) 

salesforce.com, Inc.

    94      05/18/18      USD      117.25       USD        1,093       (32,055 ) 
                  

 

 

  
  $ (2,931,993 ) 
                  

 

 

  

OTC Options Written

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		     

Exercise
Price

      Notional
Amount (000)		      Value  

Call

                      

Altair Engineering, Inc.

    Morgan Stanley & Co. International PLC      26,000        04/02/18        USD       25.60        USD       815      $ (150,037 ) 

SendGrid, Inc.

    UBS AG      20,000        04/02/18        USD       21.75        USD       563        (128,080 ) 

Isra Vision AG

    Goldman Sachs International      2,300        04/04/18        EUR       211.86        EUR       394        (156 ) 

PTC, Inc.

    Barclays Bank PLC      10,000        04/04/18        USD       69.60        USD       780        (84,331 ) 

SailPoint Technologies Holding, Inc.

    Morgan Stanley & Co. International PLC      33,500        04/04/18        USD       17.71        USD       693        (100,771 ) 

Tencent Holdings Ltd.

    UBS AG      189,000        04/04/18        HKD       418.20        HKD       79,624        (258,343 ) 

Bandwidth, Inc., Class A

    Barclays Bank PLC      7,800        04/05/18        USD       30.00        USD       255        (21,722 ) 

Bandwidth, Inc., Class A

    Barclays Bank PLC      7,800        04/10/18        USD       30.00        USD       255        (22,918 ) 

ForeScout Technologies, Inc.

    Deutsche Bank AG      13,500        04/10/18        USD       34.00        USD       438        (11,624 ) 

Linx SA

    Citibank N.A.      35,000        04/10/18        USD       20.33        USD       708        (3,533 ) 

Delivery Hero AG

    Morgan Stanley & Co. International PLC      17,600        04/11/18        EUR       35.70        EUR       691        (79,638 ) 

IQE PLC

    Goldman Sachs International      151,000        04/11/18        GBP       1.28        GBP       195        (17,057 ) 

Mediatek, Inc.

    JPMorgan Chase Bank N.A.      100,000        04/11/18        USD       312.33        USD       33,549        (73,403 ) 

RIB Software SE

    Goldman Sachs International      21,000        04/11/18        EUR       25.58        EUR       364        (127 ) 

Sunny Optical Technology Group Co. Ltd.

    JPMorgan Chase Bank N.A.      85,200        04/11/18        HKD       134.93        HKD       12,547        (155,870 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    JPMorgan Chase Bank N.A.      338,000        04/11/18        USD       247.72        USD       83,476        (40,567 ) 

Tencent Holdings Ltd.

    Goldman Sachs International      112,400        04/11/18        HKD       464.26        HKD       47,353        (23,329 ) 

ASPEED Technology, Inc.

    Goldman Sachs International      16,000        04/17/18        USD       795.60        USD       14,641        (63,557 ) 

Aixtron SE

    Credit Suisse International      31,500        04/17/18        EUR       18.03        EUR       495        (7,399 ) 

Megachips Corp.

    Morgan Stanley & Co. International PLC      30,600        04/17/18        JPY       3,942.95        JPY       114,114        (18,672 ) 

SOITEC

    Morgan Stanley & Co. International PLC      17,800        04/17/18        EUR       68.00        EUR       1,052        (3,819 ) 

STMicroelectronics NV

    Credit Suisse International      22,800        04/17/18        EUR       19.36        EUR       412        (5,132 ) 

Showa Denko

    Morgan Stanley & Co. International PLC      29,400        04/17/18        JPY       5,873.32        JPY       131,085        (537 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    JPMorgan Chase Bank N.A.      108,000        04/17/18        USD       253.60        USD       26,673        (10,024 ) 

UbiSoft Entertainment SA

    UBS AG      11,100        04/17/18        EUR       69.17        EUR       763        (22,235 ) 

IQE PLC

    Goldman Sachs International      151,000        04/18/18        GBP       1.52        GBP       195        (5,050 ) 

Okta, Inc.

    Barclays Bank PLC      37,500        04/18/18        USD       36.25        USD       1,494        (156,903 ) 

Samsung Electronics Co. Ltd.

    JPMorgan Chase Bank N.A.      1,000        04/18/18        KRW       2,514,230.00        KRW       2,490,450        (38,398 ) 

 

 

6   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

 

OTC Options Written (continued)

 

Description    Counterparty   

Number of

Contracts

      Expiration
Date		      Exercise
Price		      Notional
Amount (000)		      Value  

Call

                      

Xero Ltd.

    UBS AG      41,100        04/18/18        AUD       33.56        AUD       1,388      $ (44,206 ) 

ams AG

    Credit Suisse International      14,400        04/18/18        CHF       125.76        CHF       1,446        (7,943 ) 

ASML Holding NV

    HSBC Bank PLC      11,600        04/19/18        EUR       159.30        EUR       1,869        (94,423 ) 

MongoDB, Inc.

    Credit Suisse International      11,800        04/19/18        USD       31.38        USD       512        (142,389 ) 

RIB Software SE

    Citibank N.A.      17,000        04/19/18        EUR       32.76        EUR       294        (123 ) 

Altair Engineering, Inc.

    Barclays Bank PLC      29,400        04/30/18        USD       31.00        USD       922        (57,626 ) 

Blackberry Ltd.

    Deutsche Bank AG      14,500        04/30/18        USD       12.76        USD       167        (2,274 ) 

ForeScout Technologies, Inc.

    Citibank N.A.      16,000        04/30/18        USD       33.99        USD       519        (20,717 ) 

Linx SA

    Credit Suisse International      60,000        04/30/18        BRL       20.71        BRL       1,214        (2,037 ) 

ON Semiconductor Corp.

    Barclays Bank PLC      43,500        04/30/18        USD       26.76        USD       1,064        (16,623 ) 

ASPEED Technology, Inc.

    Citibank N.A.      16,000        05/02/18        USD       870.35        USD       14,641        (35,831 ) 

Altium Ltd.

    Citibank N.A.      47,500        05/02/18        AUD       22.41        AUD       956        (20,792 ) 

Altium Ltd.

    JPMorgan Chase Bank N.A.      95,700        05/02/18        AUD       22.39        AUD       1,926        (41,866 ) 

GMO Payment Gateway, Inc.

    JPMorgan Chase Bank N.A.      13,400        05/02/18        JPY       11,175.50        JPY       140,753        (28,813 ) 

Megachips Corp.

    JPMorgan Chase Bank N.A.      17,500        05/02/18        JPY       3,911.86        JPY       65,261        (19,340 ) 

Nintendo Co. Ltd.

    Morgan Stanley & Co. International PLC      9,000        05/02/18        JPY       50,487.59        JPY       425,456        (24,876 ) 

Pagseguro Digital, Ltd., Class A

    Deutsche Bank AG      81,500        05/02/18        USD       41.37        USD       3,123        (76,740 ) 

Linx SA

    Citibank N.A.      30,000        05/04/18        USD       20.67        USD       607        (3,195 ) 

SendGrid, Inc.

    Barclays Bank PLC      20,400        05/07/18        USD       31.15        USD       574        (17,907 ) 

ASML Holding NV

    Goldman Sachs International      12,400        05/09/18        EUR       177.12        EUR       1,998        (21,345 ) 

Bandwidth, Inc., Class A

    Barclays Bank PLC      20,100        05/09/18        USD       33.97        USD       656        (32,186 ) 

Pagseguro Digital, Ltd., Class A

    Deutsche Bank AG      81,500        05/10/18        USD       41.37        USD       3,123        (91,508 ) 

IQE PLC

    Credit Suisse International      248,300        05/15/18        GBP       1.28        GBP       320        (46,134 ) 

Zendesk, Inc.

    Bank of America N.A.      14,600        05/16/18        USD       47.60        USD       699        (56,601 ) 

Aixtron SE

    Goldman Sachs International      42,000        05/17/18        EUR       15.83        EUR       661        (68,904 ) 

Delivery Hero AG

    Credit Suisse International      15,100        05/17/18        EUR       39.88        EUR       593        (26,112 ) 

SOITEC

    UBS AG      14,200        05/17/18        EUR       60.95        EUR       840        (44,792 ) 

STMicroelectronics NV

    Goldman Sachs International      25,300        05/17/18        EUR       18.58        EUR       458        (23,624 ) 

UbiSoft Entertainment SA

    Goldman Sachs International      15,700        05/17/18        EUR       69.54        EUR       1,080        (49,010 ) 

Infineon Technologies AG

    Goldman Sachs International      52,400        05/22/18        EUR       23.16        EUR       1,145        (35,780 ) 

Naspers Ltd., Class N

    Goldman Sachs International      6,600        05/24/18        ZAR       3,037.12        ZAR       19,121        (73,452 ) 

SailPoint Technologies Holding, Inc.

    Barclays Bank PLC      36,000        05/29/18        USD       21.85        USD       745        (64,232 ) 
                     

 

 

  
                      $ (2,794,633 ) 
                     

 

 

  

 

 

     7  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. 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 quoted prices in active markets/exchanges for identical assets or liabilities that theTrust 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)

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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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 and is not necessarily an indication of the risks associated with investing in these securities. For information about the Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its annual report.

As of March 31, 2018, the following tables summarize the Trust’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Common Stocks:

                  

Chemicals

   $ —        $ 6,013,047        $ —        $ 6,013,047  

Consumer Finance

     2,665,360          —          —          2,665,360  

Diversified Consumer Services

     2,677,215          —          —          2,677,215  

Electronic Equipment, Instruments & Components

     3,631,792          9,413,483          —          13,045,275  

Household Durables

     3,147,227          —          —          3,147,227  

IT Services

     73,260,171          3,780,857          —          77,041,028  

Internet & Direct Marketing Retail

     45,848,417          —          —          45,848,417  

Internet Software & Services

     119,030,820          45,951,961          —          164,982,781  

Life Sciences Tools & Services

     —          3,295,231          —          3,295,231  

Media

     —          8,099,996          —          8,099,996  

Professional Services

     398,008          —          —          398,008  

Semiconductors & Semiconductor Equipment

     50,987,469          61,966,143          —          112,953,612  

Software

     137,201,721          30,228,110          —          167,429,831  

Technology Hardware, Storage & Peripherals

     26,427,028          6,074,837          —          32,501,865  

Preferred Stocks

     —          —          15,811,092          15,811,092  

Short-Term Securities

      3,701,779          —          —          3,701,779  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 468,977,007        $ 174,823,665        $ 15,811,092        $ 659,611,764  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

 

8   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Science and Technology Trust (BST)

 

 

      Level 1        Level 2        Level 3        Total  

Investments Valued at NAV(a)

                   $ 1,845,506  
                 

 

 

  
                  $     661,457,270  
                 

 

 

  

Derivative Financial Instruments(b)

                  

Liabilities:

                 

Equity contracts

   $ (2,830,444 )       $ (2,896,182 )       $ —        $ (5,726,626 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)  As of March 31, 2018, certain of the Trust’s Investments were fair valued using net asset value (“NAV”) per share as no quoted market value is available and have been excluded from the fair value hierarchy.  
  (b)  Derivative financial instruments are options written, which are shown at value.  

During the period ended March 31, 2018, there were no transfers between levels.

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments 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		      Total  

Assets:

     

Opening balance, as of December 31, 2017

   $ 14,005,465      $ 14,005,465  

Transfers into Level 3

     —        —  

Transfers out of Level 3

     —        —  

Accrued discounts/premiums

     —        —  

Net realized gain (loss)

     —        —  

Net change in unrealized appreciation (depreciation)(a)

     1,805,627        1,805,627  

Purchases

     —        —  

Sales

     —        —  

Closing Balance, as of March 31, 2018

   $     15,811,092      $     15,811,092  
 

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation) on investments still held at March 31, 2018(a)

   $ 1,805,627      $ 1,805,627  
 

 

 

     

 

 

  

 

  (a)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2018 is generally due to derivative financial instruments no longer held or categorized as Level 3 at period end.  

The following table summarizes the valuation approaches 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 Approach    Unobservable Inputs    Range of Unobservable
Inputs Utilized		   

Weighted

Average of
Unobservable
Inputs

  

Assets:

               

Preferred Stocks(a)

    $ 15,811,092      Market    Revenue Multiple(b)    6.00x — 7.50x      6.19x  
         Time to Exit(c)    2.8 years      —  
         Volatility(c)    38%      —  
         Recent Transactions(b)    —      —  
  

 

 

              

Total

    $ 15,811,092              
  

 

 

              

 

  (a)  For the period March 31, 2018, the valuation technique for investments classified as preferred stocks amounting to $6,591,155 changed from utilizing a Probability-Weighted Expected Return Model (“PWERM”) to Current Value. The change was due to consideration of exit strategy.  
  (b)  Increase in unobservable input may result in a significant increase to value, while a decrease in unobservable input may result in a significant decrease to value.  
  (c)  Decrease in unobservable input may result in a significant increase to value, while an increase in unobservable input may result in a significant decrease to value.  

 

 

     9  

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: May 21, 2018

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: May 21, 2018

 

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

Date: May 21, 2018