BlackRock Science (BSTZ) | News Based Sentiment Analysis

• On October 1, 2025, BlackRock announced the next distribution for BlackRock Science and Technology Term Trust (BSTZ) will be $0.1625 per share, payable on October 31, 2025. This is a decrease from the previous distribution of $0.2181 per share paid on September 30, 2025, signaling a potential shift in the fund's payout strategy.
• BSTZ is facing scrutiny due to its consistent 100% Return of Capital (ROC) distributions, as reported on October 1, 2025. Analysts are concerned this practice could erode the fund's Net Asset Value (NAV) over time and may pressure other closed-end funds with similar structures.
• The discount management program for BSTZ, evaluated between January 1, 2025, and September 30, 2025, did not trigger a tender offer. The average daily discount to NAV was (7.82%), remaining below the 10% threshold required for share repurchases.
• BlackRock reaffirmed BSTZ’s investment strategy on October 3, 2025, stating the fund aims to invest approximately 80% of its total assets in equity securities of U.S. and non-U.S. science and technology companies. The fund also continues to employ a strategy of writing call and put options.

The Investment Story: October saw BlackRock address BSTZ’s distribution policy and discount management, while reaffirming its core investment strategy, despite concerns about the fund’s reliance on Return of Capital distributions.

What It Means for Investors: The reduced distribution and ROC concerns suggest potential challenges to BSTZ’s long-term sustainability. Investors should carefully consider the implications of ROC distributions on NAV and the fund’s ability to maintain its current payout level.

Looking Ahead: Investors should monitor future distributions and NAV trends closely to assess the impact of the ROC distributions. Further announcements regarding discount management programs will also be important.

The Bottom Line: BSTZ faces headwinds due to its distribution structure, requiring investors to weigh the potential risks against the fund’s continued focus on the science and technology sector.