BlackRock Enhanced International Dividend 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: 811-22032

Name of Fund:  BlackRock Enhanced International Dividend Trust (BGY)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced International Dividend Trust, 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2018

Date of reporting period: 03/31/2018

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited)

March 31, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 98.7%

 

Australia — 8.1%  

Amcor Ltd.

     2,929,194     $ 32,075,664  

Ansell Ltd.

     657,064       12,862,972  

Sonic Healthcare Ltd.

     816,976       14,455,734  
   

 

 

  
    59,394,370  
Belgium — 3.4%  

Anheuser-Busch InBev SA

     121,591       13,368,531  

bpost SA

     506,122       11,433,831  
   

 

 

  
    24,802,362  
Canada — 10.0%  

Rogers Communications, Inc., Class B

     791,333       35,342,338  

TELUS Corp.

     1,076,118       37,787,541  
   

 

 

  
    73,129,879  
China — 1.7%  

ANTA Sports Products Ltd.

     2,377,600       12,137,186  
   

 

 

  
Denmark — 1.7%  

Novo Nordisk A/S, Class B

     252,763       12,432,364  
   

 

 

  
Finland — 3.0%  

Kone OYJ, Class B

     432,302       21,575,253  
   

 

 

  
France — 5.1%  

Sanofi

     459,696       36,886,017  
   

 

 

  
Germany — 4.6%  

Deutsche Post AG, Registered Shares

     771,478       33,790,178  
   

 

 

  
Hong Kong — 0.8%  

Sands China Ltd.

     1,046,000       5,684,314  
   

 

 

  
India — 1.7%  

Hero MotoCorp Ltd.

     225,738       12,323,103  
   

 

 

  
Japan — 3.5%  

Japan Tobacco, Inc.

     901,200       25,744,574  
   

 

 

  
Netherlands — 2.2%  

Heineken NV

     149,488       16,078,021  
   

 

 

  
Sweden — 2.1%  

Svenska Handelsbanken AB, Class A

     1,229,470       15,389,065  
   

 

 

  
Switzerland — 15.1%  

Givaudan SA, Registered Shares

     8,041       18,344,275  

Nestle SA, Registered Shares

     381,410       30,147,214  

Novartis AG, Registered Shares

     439,501       35,547,226  

Roche Holding AG

     51,007       11,700,853  

SGS SA, Registered Shares

     5,701       14,024,049  
   

 

 

  
    109,763,617  
Taiwan — 4.6%  

Far EasTone Telecommunications Co. Ltd.

     3,663,000       9,697,865  
Security   Shares     Value  
Taiwan (continued)  

Taiwan Semiconductor Manufacturing Co. Ltd.

     2,845,000     $ 24,097,714  
   

 

 

  
    33,795,579  
United Kingdom — 27.3%  

AstraZeneca PLC

     358,841       24,667,180  

British American Tobacco PLC

     799,221       46,200,459  

Diageo PLC

     596,483       20,172,876  

GlaxoSmithKline PLC

     1,314,359       25,526,221  

Imperial Brands PLC

     1,096,854       37,347,322  

Lloyds Banking Group PLC

     11,480,388       10,442,856  

Unilever PLC

     621,114       34,448,574  
   

 

 

  
    198,805,488  
United States — 3.8%  

3M Co.(a)(b)

     68,502       15,037,559  

Microsoft Corp.(a)(b)

     141,124       12,880,387  
   

 

 

  
    27,917,946  
   

 

 

  

Total Common Stocks — 98.7%
(Cost — $732,933,207)

 

     719,649,316  
   

 

 

  

Preferred Stocks — 0.7%

 

China — 0.5%  

Xiaoju Kuaizhi, Inc., Series A-17
(Acquired 07/28/15, cost $2,106,332), 0.00%(c)(d)(e)

     76,800       3,911,424  
   

 

 

  
India — 0.2%  

Jasper Infotech Private Ltd., Series F, (Acquired 05/07/14, cost $2,825,580), 0.00%(c)(d)(e)

     398       716,198  
 

 

 

     1  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
India (continued)  

Jasper Infotech Private Ltd., Series G,
(Acquired 10/29/14, cost $1,112,870),
0.00%(c)(d)(e)

     132     $ 289,460  
   

 

 

  
          1,005,658  
   

 

 

  

Total Preferred Stocks — 0.7%
(Cost — $6,054,932)

       4,917,082  
   

 

 

  
     Value  

Total Long-Term Investments — 99.4%
(Cost — $738,988,139)

   $ 724,566,398  
   

 

 

  

Total Investments Before Options Written — 99.4%
(Cost — $738,988,139)

     724,566,398  
   

 

 

  

Options Written — (0.6)%
(Premiums Received — $5,235,128)

     (4,326,708 ) 
   

 

 

  

Total Investments, Net of Options Written — 98.8% (Cost — $733,753,011)

     720,239,690  

Other Assets Less Liabilities — 1.2%

     8,767,717  
   

 

 

  

Net Assets — 100.0%

   $ 729,007,407  
   

 

 

  
 

 

(a)  All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(b)  All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives.
(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(d)  Restricted security as to resale, excluding 144A securities. As of period end, the Trust held restricted securities with a current value of $4,917,082 and an original cost of $6,044,782 which was 0.7% of its net assets.
(e)  Non-income producing security.

During the period ended March 31, 2018, investments in issuers considered to be an affiliate 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 (a)

      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      5,073,700        (5,073,700 )       —      $ —      $ 32,499      $ —      $ —  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a)  Includes net capital gain distributions, if applicable.  

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

CAD — Canadian Dollar

CHF — Swiss Franc

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

JPY — Japanese Yen

SEK — Swedish Krona

USD — U.S. Dollar

 

 

2   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

 

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

 

3M Co.

      34          04/06/18        USD     247.50        USD   746      $ (476 ) 

Microsoft Corp.

      73          04/06/18        USD     95.00        USD   666        (2,117 ) 

3M Co.

      34          04/13/18        USD     240.00        USD   746        (646 ) 

Microsoft Corp.

      123          04/13/18        USD     96.50        USD   1,123        (5,166 ) 

3M Co.

      76          04/20/18        USD     240.00        USD   1,668        (2,394 ) 

Microsoft Corp.

      131          04/20/18        USD     95.00        USD   1,196        (13,296 ) 

TELUS Corp.

      1,059          04/20/18        CAD     48.00        CAD   4,791        (4,932 ) 

3M Co.

      81          04/27/18        USD     240.00        USD   1,778        (8,181 ) 

Microsoft Corp.

      56          04/27/18        USD     94.00        USD   511        (9,900 ) 

Microsoft Corp.

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

Microsoft Corp.

      114          05/04/18        USD     94.00        USD   1,040        (28,215 ) 

3M Co.

      117          05/18/18        USD     226.50        USD   2,568        (58,757 ) 

Microsoft Corp.

      293          05/18/18        USD     95.00        USD   2,674        (72,224 ) 

Rogers Communications, Inc., Class B

      1,281          05/18/18        CAD     58.00        CAD   7,371        (114,344 ) 

TELUS Corp.

      1,225          05/18/18        CAD     46.00        CAD   5,542        (52,771 ) 
                               

 

 

  
     $ (378,875 ) 
                               

 

 

  

OTC Options Written

 

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

Call

                      

ANTA Sports Products Ltd.

    Goldman Sachs International      261,000        04/04/18        HKD       36.98        HKD       10,456      $ (103,757 ) 

Anheuser-Busch InBev SA

    Goldman Sachs International      22,000        04/04/18        EUR       85.97        EUR       1,966        (94,695 ) 

Diageo PLC — ADR

    Goldman Sachs International      46,600        04/04/18        GBP       25.05        GBP       1,124        (904 ) 

Givaudan SA, Registered Shares

    Bank of America N.A.      3,600        04/04/18        CHF       2,176.19        CHF       7,851        (98,792 ) 

GlaxoSmithKline PLC

    Credit Suisse International      516,000        04/04/18        GBP       13.37        GBP       7,141        (359,988 ) 

Heineken NV

    Bank of America N.A.      18,000        04/04/18        EUR       85.39        EUR       1,573        (49,748 ) 

Nestle SA, Registered Shares

    Credit Suisse International      100,000        04/04/18        CHF       75.33        CHF       7,556        (79,932 ) 

Novartis AG, Registered Shares

    Goldman Sachs International      54,000        04/04/18        CHF       80.72        CHF       4,175        (974 ) 

Novo Nordisk A/S

    Bank of America N.A.      66,500        04/04/18        DKK       320.66        DKK       19,817        (143 ) 

Unilever PLC

    Goldman Sachs International      59,500        04/04/18        GBP       37.47        GBP       2,352        (172,980 ) 

Deutsche Post AG, Registered Shares

    Goldman Sachs International      63,900        04/05/18        EUR       36.57        EUR       2,275        (8,691 ) 

Imperial Brands PLC

    Credit Suisse International      29,000        04/05/18        GBP       27.40        GBP       704        (7 ) 

Imperial Brands PLC

    Goldman Sachs International      136,700        04/05/18        GBP       27.94        GBP       3,318        (25 ) 

Kone OYJ, Class B

    Credit Suisse International      36,500        04/05/18        EUR       44.72        EUR       1,480        (60 ) 

Llyods Banking Group PLC

    Credit Suisse International      1,734,400        04/05/18        GBP       0.68        GBP       1,127        (2,976 ) 

Sanofi

    Goldman Sachs International      43,800        04/05/18        EUR       67.22        EUR       2,856        (4,324 ) 

bpost SA

    UBS AG      23,000        04/05/18        EUR       27.84        EUR       422        —  

Rogers Communications, Inc., Class B

    Morgan Stanley & Co. International PLC      97,000        04/09/18        CAD       57.50        CAD       5,581        (46,638 ) 

Ansell Ltd.

    Goldman Sachs International      28,800        04/10/18        AUD       25.85        AUD       734        (3,862 ) 

Sonic Healthcare Ltd.

    UBS AG      85,000        04/10/18        AUD       24.45        AUD       1,958        (527 ) 

bpost SA

    Credit Suisse International      18,000        04/10/18        EUR       27.24        EUR       330        (4 ) 

 

 

       3  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

OTC Options Written (continued)

 

Description    Counterparty  

Number of

Contracts

     Expiration
Date		     Exercise
Price		     Notional
Amount (000)		     Value  

Call

                 

ANTA Sports Products Ltd.

    JPMorgan Chase Bank N.A.     550,000       04/11/18       HKD       40.84       HKD       22,033     $ (45,764 ) 

AstraZeneca PLC

    Goldman Sachs International     118,900       04/11/18       GBP       48.01       GBP       5,826       (233,577 ) 

British American Tobacco PLC

    Bank of America N.A.     203,600       04/11/18       GBP       45.28       GBP       8,388       (5,019 ) 

Far EasTone Telecommunications Co. Ltd.

    Goldman Sachs International     402,000       04/11/18       USD       74.57       USD       31,030       (33,061 ) 

Imperial Brands PLC

    UBS AG     112,900       04/11/18       GBP       26.97       GBP       2,740       (2,673 ) 

Japan Tobacco, Inc.

    Goldman Sachs International     125,000       04/11/18       JPY       3,122.58       JPY       379,959       (24,521 ) 

Kone OYJ, Class B

    Bank of America N.A.     15,076       04/11/18       EUR       45.60       EUR       611       (83 ) 

Kone OYJ, Class B

    Credit Suisse International     5,600       04/11/18       EUR       46.37       EUR       227       (74 ) 

Llyods Banking Group PLC

    UBS AG     1,125,000       04/11/18       GBP       0.70       GBP       731       (985 ) 

Novartis AG, Registered Shares

    Bank of America N.A.     69,700       04/11/18       CHF       80.14       CHF       5,389       (11,397 ) 

Rogers Communications, Inc., Class B

    UBS AG     26,000       04/11/18       CAD       59.18       CAD       1,496       (4,396 ) 

Sanofi

    Goldman Sachs International     60,000       04/11/18       EUR       65.08       EUR       3,913       (69,820 ) 

Sonic Healthcare Ltd.

    UBS AG     47,100       04/11/18       AUD       24.68       AUD       1,085       (10 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    JPMorgan Chase Bank N.A.     264,000       04/11/18       USD       247.72       USD       65,200       (31,685 ) 

Deutsche Post AG, Registered Shares

    UBS AG     147,300       04/12/18       EUR       39.97       EUR       5,244       (1,080 ) 

TELUS Corp.

    Morgan Stanley & Co. International PLC     115,700       04/12/18       CAD       45.67       CAD       5,234       (30,731 ) 

TELUS Corp.

    UBS AG     68,400       04/12/18       CAD       45.88       CAD       3,094       (9,428 ) 

Sands China Ltd.

    Goldman Sachs International     294,000       04/13/18       HKD       43.66       HKD       12,539       (24,188 ) 

Diageo PLC

    Morgan Stanley & Co. International PLC     5,000       04/17/18       GBP       24.91       GBP       121       (869 ) 

Heineken NV

    Morgan Stanley & Co. International PLC     25,300       04/17/18       EUR       85.44       EUR       2,211       (83,711 ) 

Kone OYJ, Class B

    Credit Suisse International     96,400       04/17/18       EUR       43.85       EUR       3,910       (7,257 ) 

Nestle SA, Registered Shares

    Credit Suisse International     67,800       04/17/18       CHF       75.07       CHF       5,123       (39,678 ) 

Novo Nordisk A/S

    Morgan Stanley & Co. International PLC     44,700       04/17/18       DKK       314.18       DKK       13,321       (8,692 ) 

Roche Holding AG

    Credit Suisse International     300       04/17/18       CHF       221.41       CHF       66       (747 ) 

SGS SA, Registered Shares

    UBS AG     1,400       04/17/18       CHF       2,410.09       CHF       3,292       (27,349 ) 

Sands China Ltd.

    JPMorgan Chase Bank N.A.     166,000       04/17/18       HKD       45.47       HKD       7,080       (6,494 ) 

Sonic Healthcare Ltd.

    Deutsche Bank AG     62,300       04/17/18       AUD       24.62       AUD       1,435       (642 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    JPMorgan Chase Bank N.A.     988,000       04/17/18       USD       253.60       USD       244,006       (91,696 ) 

bpost SA

    UBS AG     7,300       04/17/18       EUR       28.16       EUR       134       (37 ) 

Amcor Ltd.

    Deutsche Bank AG     240,000       04/18/18       AUD       14.18       AUD       3,422       (47,413 ) 

Amcor Ltd.

    Deutsche Bank AG     160,000       04/18/18       AUD       14.44       AUD       2,282       (16,026 ) 

Ansell Ltd.

    Citibank N.A.     26,000       04/18/18       AUD       25.84       AUD       663       (5,288 ) 

Ansell Ltd.

    UBS AG     26,000       04/18/18       AUD       24.78       AUD       663       (17,636 ) 

British American Tobacco PLC

    UBS AG     122,100       04/18/18       GBP       45.09       GBP       5,031       (11,429 ) 

Deutsche Post AG, Registered Shares

    Goldman Sachs International     76,300       04/18/18       EUR       37.72       EUR       2,716       (8,790 ) 

Diageo PLC

    Morgan Stanley & Co. International PLC     88,950       04/18/18       GBP       24.72       GBP       2,145       (23,380 ) 

Far EasTone Telecommunications Co. Ltd.

    Citibank N.A.     544,000       04/18/18       USD       76.48       USD       41,991       (20,280 ) 

Imperial Brands PLC

    Morgan Stanley & Co. International PLC     103,100       04/18/18       GBP       26.54       GBP       2,502       (8,947 ) 

Sanofi

    UBS AG     41,700       04/18/18       EUR       65.85       EUR       2,719       (38,798 ) 

bpost SA

    Morgan Stanley & Co. International PLC     23,000       04/18/18       EUR       28.56       EUR       422       (153 ) 

 

 

4   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

OTC Options Written (continued)

 

Description    Counterparty   

Number of

Contracts

      Expiration
Date		     Exercise
Price		      Notional
Amount (000)		      Value  

Call

                      

Rogers Communications, Inc., Class B

    Morgan Stanley & Co. International PLC      97,000        04/23/18        CAD       57.50        CAD       5,581      $ (55,880 ) 

Ansell Ltd.

    Citibank N.A.      26,000        04/24/18        AUD       24.50        AUD       663        (23,216 ) 

Ansell Ltd.

    JPMorgan Chase Bank N.A.      28,800        04/24/18        AUD       25.41        AUD       734        (11,578 ) 

bpost SA

    Credit Suisse International      18,000        04/24/18        EUR       27.44        EUR       330        (313 ) 

ANTA Sports Products Ltd.

    Goldman Sachs International      258,000        04/25/18        HKD       39.94        HKD       10,335        (41,682 ) 

Far EasTone Telecommunications Co. Ltd.

    Citibank N.A.      450,000        04/25/18        USD       74.22        USD       34,736        (42,633 ) 

Japan Tobacco, Inc.

    UBS AG      206,800        04/25/18        JPY       3,045.32        JPY       628,604        (160,677 ) 

Novartis AG, Registered Shares

    Bank of America N.A.      69,700        04/25/18        CHF       80.53        CHF       5,389        (24,057 ) 

Amcor Ltd.

    UBS AG      483,800        04/26/18        AUD       14.00        AUD       6,899        (151,379 ) 

AstraZeneca PLC

    UBS AG      38,900        04/26/18        GBP       48.18        GBP       1,906        (90,136 ) 

Amcor Ltd.

    Deutsche Bank AG      110,000        05/02/18        AUD       14.15        AUD       1,569        (28,027 ) 

Amcor Ltd.

    UBS AG      295,000        05/02/18        AUD       14.59        AUD       4,207        (29,865 ) 

Anheuser-Busch InBev SA

    UBS AG      38,700        05/02/18        EUR       87.81        EUR       3,458        (102,784 ) 

Diageo PLC

    UBS AG      44,000        05/02/18        GBP       24.65        GBP       1,061        (18,508 ) 

Roche Holding AG

    Citibank N.A.      22,200        05/02/18        CHF       233.64        CHF       4,868        (10,884 ) 

Sonic Healthcare Ltd.

    UBS AG      103,200        05/02/18        AUD       24.53        AUD       2,378        (3,996 ) 

Unilever PLC

    Morgan Stanley & Co. International PLC      141,800        05/02/18        GBP       38.83        GBP       5,605        (262,440 ) 

Ansell Ltd.

    Deutsche Bank AG      58,200        05/03/18        AUD       26.64        AUD       1,484        (6,987 ) 

bpost SA

    HSBC Bank PLC      23,000        05/03/18        EUR       28.12        EUR       422        (56 ) 

TELUS Corp.

    Citibank N.A.      84,700        05/07/18        CAD       46.82        CAD       3,832        (15,316 ) 

Ansell Ltd.

    Deutsche Bank AG      32,000        05/08/18        AUD       26.35        AUD       816        (6,610 ) 

Kone OYJ, Class B

    Goldman Sachs International      36,600        05/08/18        EUR       42.02        EUR       1,484        (27,905 ) 

bpost SA

    UBS AG      26,500        05/08/18        EUR       27.90        EUR       487        (106 ) 

Deutsche Post AG, Registered Shares

    UBS AG      47,000        05/09/18        EUR       37.30        EUR       1,673        (10,578 ) 

Diageo PLC

    Barclays Bank PLC      77,900        05/09/18        GBP       24.28        GBP       1,878        (58,551 ) 

Japan Tobacco, Inc.

    Citibank N.A.      64,700        05/09/18        JPY       2,975.37        JPY       196,667        (81,207 ) 

Sanofi

    Goldman Sachs International      56,800        05/09/18        EUR       67.32        EUR       3,704        (56,477 ) 

Sonic Healthcare Ltd.

    UBS AG      61,900        05/09/18        AUD       23.91        AUD       1,426        (9,293 ) 

Unilever PLC

    Barclays Bank PLC      72,000        05/09/18        GBP       38.10        GBP       2,846        (173,988 ) 

Imperial Brands PLC

    UBS AG      101,000        05/11/18        GBP       25.68        GBP       2,451        (56,432 ) 

GlaxoSmithKline PLC

    Barclays Bank PLC      141,100        05/15/18        GBP       14.11        GBP       1,953        (57,550 ) 

Llyods Banking Group PLC

    UBS AG      1,440,000        05/15/18        GBP       0.66        GBP       936        (13,415 ) 

bpost SA

    UBS AG      26,500        05/16/18        EUR       27.90        EUR       487        (177 ) 

Far EasTone Telecommunications Co. Ltd.

    Citibank N.A.      218,000        05/17/18        TWD       77.28        TWD       16,827        (7,583 ) 

Heineken NV

    UBS AG      31,400        05/17/18        EUR       87.96        EUR       2,745        (50,112 ) 

SGS SA, Registered Shares

    UBS AG      1,400        05/17/18        CHF       2,410.90        CHF       3,292        (51,200 ) 

Ansell Ltd.

    UBS AG      32,000        05/23/18        AUD       26.08        AUD       816        (11,211 ) 

Svenska Handelsbanken AB

    Credit Suisse International      270,000        05/23/18        SEK       103.30        SEK       28,218        (112,709 ) 

Far EasTone Telecommunications Co. Ltd.

    Citibank N.A.      218,000        05/24/18        TWD       77.28        TWD       16,827        (8,110 ) 

Llyods Banking Group PLC

    Goldman Sachs International      1,440,000        05/24/18        GBP       0.66        GBP       936        (15,718 ) 

Ansell Ltd.

    Citibank N.A.      70,700        05/30/18        AUD       25.46        AUD       1,802        (35,656 ) 
                     

 

 

  
   $ (3,947,833 ) 
  

 

 

  

 

 

     5  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

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 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)

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:

 

Australia

   $ —        $ 59,394,370        $ —        $ 59,394,370  

Belgium

     11,433,831          13,368,531          —          24,802,362  

Canada

     73,129,879          —          —          73,129,879  

China

     —          12,137,186          —          12,137,186  

Denmark

     —          12,432,364          —          12,432,364  

Finland

     —          21,575,253          —          21,575,253  

France

     —          36,886,017          —          36,886,017  

Germany

     —          33,790,178          —          33,790,178  

Hong Kong

     —          5,684,314          —          5,684,314  

India

     —          12,323,103          —          12,323,103  

Japan

     —          25,744,574          —          25,744,574  

Netherlands

     —          16,078,021          —          16,078,021  

Sweden

     —          15,389,065          —          15,389,065  

Switzerland

     —          109,763,617          —          109,763,617  

Taiwan

     —          33,795,579          —          33,795,579  

United Kingdom

     —          198,805,488          —          198,805,488  

United States

     27,917,946          —          —          27,917,946  

Preferred Stocks

     —          —          4,917,082          4,917,082  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 112,481,656        $ 607,167,660        $ 4,917,082        $ 724,566,398  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

 

6     

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

 

 

      Level 1        Level 2        Level 3        Total  

Derivative Financial Instruments(a)

 

Liabilities:

 

Equity contracts

   $ (320,118 )       $ (4,006,590 )       $ —        $ (4,326,708 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

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

Transfers between Level 1 and Level 2 were as follow:

 

     

Transfers into

Level 1

       

Transfers out of

Level 1 (a)

       

Transfers into

Level 2 (a)

       

Transfers out of

Level 2

  

Assets:

 

Long-Term Investments:

 

Common Stocks

    $ 12,033,525        $ (17,468,213 )       $ 17,468,213        $ (12,033,525 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)  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.  

 

 

     7  

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 Enhanced International Dividend Trust

 

By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Enhanced International Dividend 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 Enhanced International Dividend Trust

Date: May 21, 2018

 

By:       /s/ Neal J. Andrews                
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Enhanced International Dividend Trust

Date: May 21, 2018